This is a contract between a lender and a borrower. It specifies what is to be lent, the conditions of loan and the respective responsibilities of each party. A covering letter may also be issued with the agreement which draws attention to particularly important conditions of loan.
The loan agreement (may also be called a lender’s agreement, borrower’s agreement or loan contract) should be final.
- This period is to have been agreed beforehand.
- Confirmation of pre-loan discussion is a condition and part of the application for the loan. See installation documentation and facilities report guidelines.
- Each institution should agree to this period of time. As a guideline, larger institutions require a period of between six and twelve months.
- The insurance valuation is based on a distinction between value of art and value of equipment or components lent.
- This is a legal document and specific language should be approved by Lending Institution’s legal counsel. In general these are the terms and conditions used by many lending institutions.
Commercial insurance, indemnity and immunity
- Insurance procedures may vary according to the country Lending Institution is located. Depending upon the guidelines of the individual country, some works might need filing from immunity from seizure.
- Some institutions may charge a loan administration fee. In addition, a depreciation fee may be invoked for replaceable components associated with the loan work.