This document is a clause relating to regular periodic repayments of principal. 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”.
This clause provides a way to record the situation where a borrower intends to repay the principal or capital component of a loan in regular instalments over the period of the loan. This clause is not suitable to circumstances where the borrower is allowed to make progressive drawdowns of the loan amount over the period of the loan.
An alternative way to structure this clause is to set out each instalment to be paid in a table format which is then attached as a schedule to the agreement.
- Basic loan agreement
- Guarantee of payment of loan
- General security deed
- Amendment and restatement agreement
- Deed of priority
- Forbearance of debt agreement
- Deed of assignment of debt
- Real property mortgage
- 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.