template

Standard Debenture

by
Genie Team
Genie Team
Oct, 10 2023

When to use this template

A Standard Debenture under UK law is a legal template designed to establish the terms and conditions for a specific type of loan, commonly known as a debenture. It outlines the agreement between a company (the borrower) and a lender, typically a bank or financial institution, regarding the loan amount, repayment terms, interest rates, and other essential provisions.

This legal document ensures that both parties understand and comply with their respective obligations and rights throughout the loan duration. It typically includes clauses related to the use of funds lent, charges on the borrower's assets, repayment schedule, insurance requirements, and events of default.

The Standard Debenture template also safeguards the lender's position by granting them specific rights, such as the ability to appoint a receiver or administrator, or to enforce security over the borrower's assets, in case of default or breach of the terms. Additionally, it may establish a fixed or floating charge against the company's assets, providing security to the lender in the event of insolvency or liquidation.

This legal template serves as a standardized framework for both parties to negotiate the terms of the loan and ensures compliance with UK laws and regulations regarding debentures. Companies seeking borrowing options or lenders wanting to secure their loan investments can utilize this template to establish a clear and legally binding agreement that protects their interests.

Key issues covered in this template

  • Authorisation to act
  • Comply with environmental law
  • Insurance policy
  • Receiver's powers
  • Release claims
  • Rights in Insurance Policy
  • Security procedures
  • Grant of security
  • Floating charge
  • Liability of the Borrower
  • warranties
  • N/A

What to watch out for

  • The company issuing the debenture should be incorporated in England and Wales

  • The debenture is in favour of a single corporate lender

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Author

Genie Team

Genie Team

@genieteam
Genie AI Team

The Genie Team consists of lawyers and paralegals. Our aim is to open source the law and provide high quality, regularly reviewed legal documents.

Cheswick Capital Limited
Omikron Financial Holdings Europe Ltd
Brandon Group Ltd
Funky Light and Sound
Power Acountax Ltd
Milliken Law Ltd.
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Additional information

Business categories

Business activities

Contract type

Relevant sectors

Other

Relevant company sizes

1 - 3

20 - 49

250 - 999

4 - 19

50 - 249

1000 +

Governing law

England and Wales

Language

English UK

Gender neutral

Yes