¶¶Òõ¶ÌÊÓƵ

The Loan Agreement Document is a vital legal instrument used in Nigerian financial transactions to formalize lending arrangements between parties. It is essential for both commercial and personal lending, ensuring compliance with Nigerian banking regulations, including the Money Lenders Act, Central Bank of Nigeria Act, and other relevant financial legislation. This document is particularly important in the Nigerian context where formal lending must adhere to strict regulatory requirements and interest rate guidelines. The agreement serves multiple purposes: it protects the lender's interests by establishing clear repayment terms and security arrangements, provides the borrower with detailed understanding of their obligations, and ensures the transaction meets all legal requirements for enforceability under Nigerian law. The document is commonly used by banks, financial institutions, and private lenders for various financing purposes, from business expansion to asset acquisition.

1. Parties: Identifies and provides full details of the lender and borrower, including registration numbers for companies

2. Background: Sets out the context of the loan and the parties' intention to enter into the lending arrangement

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. The Loan: Specifies the loan amount, purpose, and conditions precedent to drawdown

5. Interest: Details the interest rate, calculation method, and payment terms in compliance with Nigerian regulations

6. Repayment: Specifies repayment schedule, method, and currency of repayment

7. Representations and Warranties: States the facts and assurances provided by the borrower

8. Borrower's Covenants: Lists the borrower's ongoing obligations throughout the loan term

9. Events of Default: Defines circumstances that constitute default and their consequences

10. Lender's Rights and Remedies: Outlines the lender's rights upon default or breach

11. Notices: Specifies how formal communications between parties should be made

12. Governing Law and Jurisdiction: Confirms Nigerian law as governing law and specifies jurisdiction for disputes

13. Boilerplate Clauses: Standard clauses including severability, entire agreement, and amendments