A bank loan agreement is a contract between a lender and a borrower, under which the lender, i.e. a bank makes available loan monies to the borrower. The loan agreement provides the contractual basis under which the loan is made. The borrower agrees to pay the loan sum and abide by the terms of the loan agreement in exchange for the loan. The loan agreement sets out the terms of the loan arrangement including the amount of loan, any conditions to be satisfied prior to draw the loan, interest payment provisions, undertakings of the borrower, warranties and representations and so on. The agreement also sets out applicable security with provisions relating to the term and termination of the agreement upon occurrence of default events.
