Director loan agreement

[nadeem75]

Hi all senior members,
i paid to lawyer for prepared a director loan please advise as per home office every thing is covered. i brought payment 2 different time so i am preparing 2 loan agreement.

cover page
DATED
7th Day of April 2015

DIRECTOR LOAN AGREEMENT

between

company name
and
NADIM

2ND PAGE
THIS AGREEMENT is made on 7th day of April 2015.
PARTIES
(1) MY company name registered office in London (borrower)
and
(2) my name of house address (‘the Lender’)
IT IS AGREED:
1 INTERPRETATION
In this agreement:
1.1 unless the context otherwise requires the expressions ‘the Borrower’ and ‘the Lender’ include their respective successors and assigns whether immediate or derivative and where appropriate the survivors or survivor of them and where either party comprises two or more persons include any one or more of those persons;
1.2 where any party to this agreement for the time being comprises two or more persons, obligations expressed or implied to be made by or with that party are deemed to be made by or with the persons comprising that party jointly and severally;
1.3 unless the context otherwise requires:
1.3.1 the singular includes the plural and vice versa;
1.3.2 references to persons includes references to firms, companies, corporations or limited liability partnerships and vice versa; and
1.3.3 references in the masculine gender include references in the feminine or neuter genders and vice versa;
1.4 the clause headings do not form part of this document and are not to be taken into account in its construction or interpretation;
1.5 any reference in this document to a clause without further designation is to be construed as a reference to the clause of this document so numbered;
1.6 Unless expressly stated to the contrary, any reference to a specific statute includes any statutory extension or modification, amendment or re-enactment of that statute and any regulations or orders made under it, and any general reference to a statute includes any regulations or orders made under that statute.
2 AGREEMENT TO LEND
The Lender agrees with the Borrower to loan £25000.00 (the loan) on 7th April 2015 to the Borrower upon the terms, conditions and provisions of this agreement.
3 THE TERMS OF THE LOAN
3.1 The Lender agrees to loan the Borrower £50,075.00 free of interest for a period of 5 years commencing on the date of this agreement.
3.2 The loan is unsecured and is to be used for business development.
3.3 The Borrower agrees to repay the loan of £25000.00 in full on or after the end of the 7 years period.
3.4 If the Borrower fails to repay the loan in full by the end of the 7 years period, the Lender will be entitled to charge interest from the end of the 5 years period for the outstanding amount at the rate of 1% p.a.
3.5 The Borrower agrees to pay the legal costs for this agreement.
4 VALIDITY AND SEVERABILITY
4.1 Enforceability
Each of the provisions of this agreement is severable and distinct from the others and if at any time one or more of such provisions is or becomes invalid, illegal or unenforceable the validity, legality and enforceability of the remaining provisions shall not be affected or impaired.
4.2 Lack of capacity
If this agreement is executed by or on behalf of more than one person and any one or more of those persons is not bound by its provisions (whether by reason of lack of capacity or improper execution or for any other reason), the remaining parties shall continue to be so bound as if those who are not bound had not been parties to the agreement.
5 THIRD PARTY CREDITORS
For the avoidance of any doubts, the Lender acknowledges that the loan is unsecured and subordinated in favour of third party creditors. In the event of the Borrower becomes insolvent, the loan will not be repaid until all other creditors of the Borrower have been paid in full.
6 GOVERNING LAW AND JURISDICTION
6.1 Construction
This agreement shall be governed by and construed in accordance with English law.
6.2 Jurisdiction of English courts
It is irrevocably agreed for the exclusive benefit of the Lender that the courts of England are to have jurisdiction to settle any disputes which may arise out of or in connection with this agreement and that accordingly any suit, action or proceeding arising out of or in connection with this agreement may be brought in such courts.
SIGNED by the above named
Company name (The Borrower)

In the presence of

Signature: ……………………………………..
Name: …………………………………………….
Address: …………………………………………
………………………………………………………..
………………………………………………………..
………………………………………………………..
Occupation: ……………………………………

SIGNED by the above named
My name (The Lender)

In the presence of

Signature: ……………………………………..
Name: …………………………………………….
Address: …………………………………………
………………………………………………………..
………………………………………………………..
………………………………………………………..
Occupation: ……………………………………

your early reply is really appreciated. i need to final in 2 days.
solicitor said, he will sign as a witness.
regards
nadim

[ishfaqsangra]

Looks ok to me not sure about repayment clauses and interest after 5 years