This document is an amendment and restatement agreement. It is to be used when attempting to make minor or major changes to an existing Australian banking agreement.

Changes to banking agreements

Practitioners should consider whether it is preferable to:

• terminate an existing agreement and starting a new one; or
• amend the existing agreement.

This is because an old agreement may be unworkable so that continuously amending it may cause additional work. A new agreement started from scratch may be just as effective.

Amendment and restatement agreements

As a third option, this precedent allows companies to restate their agreement in the form of an amendment by comprehensively reproducing the new entire agreement as an annexure. This method is perhaps more effective since it ensures there is coverage of an agreement for the entire period, and no risk that an agreement is terminated and not restated. Practitioners should of course seek internal advice on the best course from the counterparty as well as using own judgement.

Consider from the outset whether you wish to have an amendment or restatement trajectory. This will shape the elections that you make in drafting your agreement.

If parties are in a group arrangement, you will need to advise and consider which party will need to execute the agreement or whether all parties are subject to the agreement. If parties are international, you should seek advice on the best execution clauses to include in such scenarios based on local legal advice and to ensure you are contracting with the correct party.

Related precedents

• Basic loan agreement
• Real property mortgage
• Guarantee of payment of loan
• General security deed
• Deed of priority
• Forbearance of debt agreement
• Deed of assignment of debt
• Loan agreement checklist

This document has been authored for LexisNexis by David Marcus.

This document is prepared with the assistance of Specialist Editors Geoff Geha, Partner, Clayton Utz and Karen Lee, Principal and Consultant, Legal Know-How.