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Nicola-mod
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Hi! how can I add a clause to a loan agreement in order to

Customer Question

Hi! how can I add a clause to a loan agreement in order to show the purpose of the loan granted.thx
Submitted: 2 years ago.
Category: Law
Expert:  tdlawyer replied 2 years ago.

tdlawyer :

Hi, thanks for your question.

tdlawyer :

My name is Tony, I can assist with this.

tdlawyer :

Normally, people put details of the reason the loan is being made, or the background to the agreement generally, in rectials in the first part of the agreement.

tdlawyer :

You can call the agreement section RECITALS or BACKGROUND

tdlawyer :

And then do lettering paragaraphs like (A), (B) etc... with details of what led up to the agreement being entered into. Then, you go to the main agreement, headed AGREEMENT, where you put the main clauses.

JACUSTOMER-9ff3d235- :

Hi.the date of the agreement was 12 Dec 2010 and now the bank is asking to amend this agreement and add the clause about purpose of loan.the country is Cyprus.

tdlawyer :

Am I able to tell you what we do in England and the position is under English law?

JACUSTOMER-9ff3d235- :

yes, please

JACUSTOMER-9ff3d235- :

the Cyprus law is based on English law

tdlawyer :

Okay, you can't be required to agreement amendments to an agreement after the agreement has been executed and signed etc.

tdlawyer :

Amendments can only be made with both parties agreeing.

tdlawyer :

It;s unusual to want to amend the agreement under English law for this reason, becuase it adds nothing, only the background to the agreement.

tdlawyer :

It isn't part of the operative part of the agreement.

tdlawyer :

To me this sounds like a strange request.

JACUSTOMER-9ff3d235- :

the banks in Cyprus asked for this.

JACUSTOMER-9ff3d235- :

the loan was provided by company A to company B in 2010

JACUSTOMER-9ff3d235- :

but in the loan agreement the purpose of loan were not indicated.

tdlawyer :

OKay, as I say, under English law this would seem rather odd, as it wouldn't serve any real purpose to amend the agreement in this way.

JACUSTOMER-9ff3d235- :

excuse me, are you with me?

tdlawyer :

That said, banks are strange things sometimes, and have a checklist of how they like everything to be. Perhaps they're just following that having reviewd things.

tdlawyer :

That said, I would strongly urge you to get a Cypriot solicitor to review the agreement before you agree to do anything.

tdlawyer :

As I say, in England, it wouldn't necessarily be that relevant, but it might be that in Cyprus, there is a different and it might affect the enforceability of the agreement.

JACUSTOMER-9ff3d235- :

ok. if I want to make an amendment to the agreement in order to add a clause?

tdlawyer :

Then you can, with the bank's consent.

JACUSTOMER-9ff3d235- :

why a bank's consent is needed?

tdlawyer :

To vary any agreement, you need the consent of the other party. In your case, that's the bank, and hence it's consent would be required to change the agreement.

JACUSTOMER-9ff3d235- :

no it's not the bank

JACUSTOMER-9ff3d235- :

there is a loan agreement between company A and company B

tdlawyer :

Sorry, I'm with you. Then both companies need to agree.

JACUSTOMER-9ff3d235- :

ok.may I have a sample?

tdlawyer :

A sample? What do you mean?

Expert:  Nicola-mod replied 2 years ago.
Hello,

It seems the professional has left this conversation. This happens occasionally, and it's usually because the professional thinks that someone else might be a better match for your question. I've been working hard to find a new professional to assist you with your question, but sometimes finding the right professional can take a little longer than expected.

I wonder whether you're OK with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Nicola

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