A loan agreement is an agreement between two parties whereby one party (usually referred to as the ‘lender’) agrees to provide a loan to the other party (usually referred to as the ‘borrower’).

A Division 7A loan agreement is a loan agreement that covers certain payments or loans that are made or debts that are forgiven by a private (i.e. proprietary limited) company, and would otherwise be treated for tax purposes as assessable income of the recipient.

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About this Document

LegalVision’s LVDox™ Free Division 7a – Loan Agreement sets out:

  • a basic interest clause;
  • a basic repayment clause; and
  • basic costs and expenses, amendments, waiver and governing law clauses.

If your loan arrangement is more complex, then it’s important that you have a lawyer assist you draft the following clauses:

  • a sophisticated dispute resolution clause; and
  • additional provisions in related to the rights, responsibilities and obligations of the partners, particularly if agreement has been reached on particular issues.

Pro Document Benefits

You can choose to upgrade your LVDox to a LVDox Pro document. Upgrading your legal document has the following benefits:

  • Consultation with a lawyer specialising in your industry
  • Review of the legal requirements for your business
  • Drafted specifically for your business and industry
  • Document reviewed and signed off by a lawyer
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  • We provide a fixed-fee service so there are no surprises

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