Individuals, companies and businesses lend and borrow money regularly. Loans can be complex or simple. If you are a lender your interests are different from that of the borrower. It is important to ensure that all parties understand their obligations in the loan transaction and that is why it is most important that the terms of a loan are set out in a loan agreement. Parties to a loan agreement must also consider whether the loan is to be secured or unsecured. Securing a loan means that security is taken over property of the borrower and if the borrower doesn’t make the required repayments the lender can depending on the terms of the loan take possession of the assets to repay the loan.
The type of security will depend on the loan.
Our extensive commercial practice extends to acting for both mortgagors and mortgagees in advice on wide range of loan and facility agreements and associated securing mortgages. Our clients seek our advice on the types of loan to be prepared, the types of security to be taken and its enforcement. We prepare loan agreements, mortgages and caveats over land for a wide range of loan arrangements.