The Acis Debit (Div 7A) Loan Facility has been designed and drafted as a facility agreement for maximum flexibility.
It may be used for one or more loans made by a company lender. This is achieved by adopting a standard set of terms
for each loan which is incorporated into each individual loan agreement when it is made. Loans may be documented
individually or as amalgamated loans for any year by simply completing a short form agreement recording the amount
of the loan.
IMPORTANT NOTE: When using this Loan Agreement, you must ensure that the Lender and the Borrower record and
agree the amount of the loan which it regulates. This may be recorded in the books of the company or separately but
must in all cases conform with TD 2008/8.
Completing the Order Form: Whilst the Order Form is largely self explanatory, we wish to advise that the following
should be taken into consideration at the time of completing the form:
1.
There is no requirement for the Lender to take any security over the Borrower’s property, or otherwise, but this will
affect the term of the loan. Loans secured by real estate mortgage with a loan to value ratio of less than 90% may
be for a period of up to 25 years. Unsecured loans or loans secured by other forms must be for a maximum period of
7 years. Security may be taken at the Lender’s discretion.
2.
The Income Tax Assessment Act 1936 requires a commercial rate of interest to be charged and this must be at least
equivalent to the benchmark rate set by the Act. The Act also requires minimum annual payments to be made by the
borrower.
For more information please refer to our Explanatory Notes which can be provided upon request.
