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.
Start nowLegalVision’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.
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
