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Unsecured Directors Loan Agreement Template for Singapore

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Unsecured Directors Loan Agreement Template

Need an Unsecured Directors Loan Agreement Template for a S$250,000 loan to our company director, with monthly repayments over 3 years starting March 2025, including an early repayment option without penalty.

Document background
The Unsecured Directors Loan Agreement Template is essential for Singapore companies extending loans to their directors without requiring security. This document ensures compliance with the Companies Act (Chapter 50) and corporate governance requirements while protecting both the company's and director's interests. It's particularly relevant when directors require funding for personal or business purposes, and the company is willing to provide it without security. The agreement covers crucial elements including loan amount, interest rates, repayment terms, and default provisions, all within Singapore's legal framework.
Suggested Sections

1. Parties: Identifies the company and director(s) entering into the loan agreement

2. Background: Context of the loan and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Loan Amount and Purpose: Specifies the loan amount and intended use

5. Interest Rate: Details of interest rate and calculation method

6. Repayment Terms: Schedule and method of repayment

7. Events of Default: Circumstances constituting default and consequences

8. Representations and Warranties: Standard declarations by both parties

9. Governing Law: Specifies Singapore law as governing law

Optional Sections

1. Security: Optional security arrangements if later required

2. Insurance: Life or key person insurance requirements for larger loans or higher risk situations

3. Early Repayment: Terms for early loan repayment when such option might be contemplated

4. Assignment: Rights to assign the loan when transfer might be needed

Suggested Schedules

1. Repayment Schedule: Detailed breakdown of repayment dates and amounts

2. Board Re红杏直播: Copy of board approval for the loan

3. Shareholders' Re红杏直播: Copy of shareholders' approval if required under Companies Act

4. Interest Calculation Examples: Illustrative examples of interest calculations

Authors

Alex Denne

Head of Growth (Open Source Law) @ 红杏直播 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
























Clauses

























Industries

Companies Act (Chapter 50): Primary legislation governing corporate activities in Singapore, particularly Sections 162 and 163 regarding loans to directors, requirements for disclosure and shareholder approval, directors' duties and responsibilities, and financial assistance provisions

Banking Act (Chapter 19): Regulatory framework covering lending practices, interest rate restrictions, and money lending provisions in Singapore's banking sector

Moneylenders Act (Chapter 188): Legislation primarily for licensed moneylenders but relevant for interest rate caps and fair lending practices that may influence director loan structures

Income Tax Act: Tax legislation governing the treatment of interest on directors' loans, deemed interest provisions, and tax implications for both company and director

Corporate Governance Code: Guidelines establishing best practices for related party transactions, disclosure requirements, and director dealings in Singapore companies

Contract Law (Singapore): Common law principles governing basic contract formation, consideration requirements, and terms and conditions enforceability under Singapore jurisdiction

Limitation Act: Legislation establishing time limits for enforcement of contractual rights and prescription periods for debt recovery

Personal Data Protection Act: Framework for handling personal information in agreements and privacy considerations in business transactions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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