Director's loan agreement advise

[nadeem75]

Hello Zimba88 and other Senior members
i going to apply my extension in feb 2017, please advise if any issue on this Director's Loan.your support will be highly appreciated.
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Director’s Loan Agreement

THIS AGREEMENT is made on 30th day of November 2016.

PARTIES

Borrower (“The Borrower”)

A - XXX the registered office of which is at --------, London, Company Registration No 00000 (‘ the Borrower’)

BETWEEN
Lender (“The Lender”)

B - Name of Director of Flat no, Road, post code is a director of xyz ltd, Company Registration No 000 (‘the Lender’)

WHEREBY IT IS AGREED: In this agreement as follows:

1 Interpretation

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.

2nd page

The Terms and Conditions of this Loan

1 Terms of the Loan

The Lender Mr....... agrees with the Borrower xyz ltd to loan the sum of Twenty Thousand and Fifty Pounds. £20,050 (the loan) on 30th November 2016 to the Borrower upon the terms, conditions and provisions of this agreement.

2 Interest Rate Payable

There is consensus between both parties that the Directors’ Loan free of interest for a period of 10 years commencing on the date of this agreement.

3 Period of the Loan

The duration of loan agreement will be for 10 years and renewable for another five years with the consensus of both the parties depending upon the profitability index of a company.

4 Loan Security

4.1 The director’s loan is unsecured and subordinated in favour of third party creditors

4.2 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 short term and/or long term creditors of the Borrower have been paid in full.

5 Assignment and Transfer

The Director may not assign any of its rights or obligations under this Agreement.

6 Validity and Severability

6.1 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.


page no 3

6.2 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.

7 Governing Law and Jurisdiction

7.1 Construction
This agreement shall be governed by and construed in accordance with English law.

7.2 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
xyz ltd (The Borrower)

In the presence of

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


SIGNED by the above named
Mr ......... (The Lender)
In the presence of
Signature: ……………………………………..
Name: …………………………………………….
Address: …………………………………………
………………………………………………………..
Occupation: ……………………………………


regards
Nadeem75

[zimba]

You seem to have covered all they want

[nadeem75]

Thanks zimba88.

[yhm75]

i have one q?

in director loan agreement witness is must need ?or not

[zimba]

i have one q?

in director loan agreement witness is must need ?or not

No, a loan agreement requires no witness