This document is a clause for an ad hoc drawdown. It is designed to be inserted into a loan agreement. The defined terms in this clause have the same meaning as those in the precedent called “Basic loan agreement”.
Where a loan provides the borrower with the ability to drawdown the loan amount progressively over time, the parties can agree that the borrower either:
- draws down the loan amount by way of fixed instalments on agreed dates, called a fixed draw down; or
- draws down the loan amount flexibly as and when the borrower requires up to a maximum loan amount within a certain time period, called an ad hoc drawdown.
These precedent clauses set out the terms that should be included in a loan agreement where the borrower is entitled to ad hoc drawdowns.
- Basic loan agreement
- Guarantee of payment of loan
- General security deed
- Amendment and restatement agreement
- Deed of priority
- Real property mortgage
- Forbearance of debt agreement
- Deed of assignment of debt
- Loan agreement checklist
This document has been authored for Lexis Nexis by Elise Margow, Principal, Legally Speaking.
This document is prepared with the assistance of Specialist Editors Geoff Geha, Partner, Clayton Utz and Karen Lee, Principal and Consultant, Legal Know-How.