Claudia Eggers December 23, 2021 Agreement
Hello, today we gonna talk about Borrower Lender Agreement, which usually we call it as A Loan Agreement. Now, congratulations, you are on your way of building your loan. So, let's get started!!!
A loan agreement is entered into in situations where someone lends money to someone else that's the lender lends money to the borrower. Essentially, a loan agreement comprises four sections;
a. Contains the terms.
b. Concerned with the operational terms relevant to the agreement.
c. Dedicated to the specifics of the loan transaction.
d. Contains standard text.
Talking about a loan agreement, a lot of people don't know is that. In 2009, there was something called the PPSA (Personal Property Securities Act), that I came in place to register security interests. It is really important that you know what that's all about. Now, if you were to buy a car. And when you buy that car, you buy via finance. The financier will lodge a charge against that car. So, if you don't pay your debt. They can come in and take possession of your car. That charge is registered via the PPSA. And it's a registration that says to any third party. You can't buy that car, because this financier is owed money, or they can't transfer that car because this financier is owning money.
So it's really essential that if you're lending money as a lender to a borrower, you consider whether PPSA are a personal property security registration is necessary for your loan. If you lend it to a company, you can lend, but you can also put a charge a fixed and floating charge over the whole company claiming ownership of all assets in the event of a default, or claiming a security interest over all the assets in the event of a default.
If you lend it to an individual. You might not be able to register anything against an individual personally, but the individual might have an asset that you can secure your interest against. So rather than just entering a loan agreement that says someone's gonna pay you back by a certain time, consider having that interest secured. And the best way to protect your security interest is by registering a PPSA. Thank you very much, and I'll see you next time.
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