Short-Form Directors Loan Agreement

The Short-Form Directors Loan Agreement under UK law is a legal template that regulates financial transactions between a director and a company. This template outlines the terms and conditions of a loan agreement, specifically designed for a director borrowing funds from the company for personal use, or potentially lending funds to the company.

The agreement typically includes details such as the loan amount, interest rate, repayment terms, and any applicable fees or charges. It may also cover provisions for early repayment, default or breach of terms, and the consequences of non-payment. Moreover, the legal template may include provisions regarding security or collateral, if any, to ensure repayment of the loan.

As an essential document within corporate governance, the Short-Form Directors Loan Agreement aids in maintaining transparency and accountability between the director and the company. It helps establish a clear framework for financial transactions while adhering to the legal requirements and regulations outlined by the UK government.

Ultimately, the purpose of this legal template is to protect the interests of both parties involved, ensuring fair and responsible lending or borrowing practices while complying with the laws governing such transactions in the United Kingdom.

• A facility agreement is a loan agreement between a director or shareholder and a company

• The agreement should be bilateral, meaning that both parties are obligated to perform under the agreement

• The agreement should be secured or unsecured, meaning that the loan is either backed by collateral or not

• The agreement should be in sterling, meaning that the loan is denominated in British pounds

• The agreement should be a term facility, meaning that it has a fixed term during which the loan must be repaid