Resources

Loan Agreement Guidelines

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. See Process Diagram and Process Guidelines. 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.

We have also provided a template in case of use.

• 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.

• 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.

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