Please Note: Our LAWLIVE® document is drafted to comply with Section 109N and if you amend it in any way the loan may be deemed to be a dividend.

Other Loans: it is important to have formal evidence of any loan and the terms on which the money is lent. By having a written Agreement it is easier to enforce the terms on which the loan was made and it is evidence that it was a loan and not a gift. If the loan is to carry interest then the interest rate should be inserted. If the loan is to be repaid on a fixed date or on the occurence of an event then that date or event should also be included.

Guarantees: where a loan has previously been made without a 3rd party guarantee, a subsequent request for a guarantee may be made. Our templates may be used in this situation and may also be used where the guarantee is being provided contemporaneously with the loan.

- Unsecured Loans (Financial Agreements)

Unsecured Loans are loans that do not require the borrower to provide the lender with collateral, usually because of the creditworthiness of the borrower. Because the loan is not secured against the borrower's assets, such as property, it is important to draft an agreement that clearly sets out the terms on which money has been lent. Several templates are provided for creating an unsecured loan agreement between companies and individuals or between themselves.

- Division 7A Loans (Financial Agreements)

This is the Division 7A Loan Agreement to be used where a company is lending to a single borrower who is a natural person and that person is a director, shareholder or associate of a director or shareholder of the company. The template complies with the Income Tax Assessment Act 1936 (Cth) to avoid the loan being deemed as a dividend.

- Guarantees & Indemnities (Financial Agreements)

Deeds of Guarantee & Indemnity (Loans) can be used in conjunction with Loan Agreements that do not provide guarantees or require further guarantees. The Deed is an agreement by both parties that the Debtor guarantees to perform their duties under the Loan Agreement properly (or have a guarantor) and if they do there will be no comeback by the Lender. Effectively, one party financially protects another against an anticipated loss and this is particularly important when there is doubt as to the financial position of parties.

There are three versions covering loans from an individual to a company, a company to company or an individual to individual. There is also a Deed for Transactions (where there is no loan agreement).

- Letters of Demand (Financial Agreements)

If a claim is being made against a debtor or borrower, as the first step towards satisfying that claim it is usual to send letters of demand prior to commencing any formal recovery process. The LAWLIVE™ letters of demand have been drafted to ensure due process prior to formal recovery.

The first step is to send a Letter of Demand: Friendly Reminder, this is a gentle reminder to the debtor that they have not paid the outstanding invoice.

The second step is to send a Letter of Demand: Second Reminder, this informs the debtor that you have already asked once and not received payment.

The final step is to send a Letter of Demand: Final Reminder, this tells the debtor that if you do not receive payment within 7 days you will proceed with legal action.

LawLive's new Business Letter of Demand Pack contains all three letters in an editable format, giving you the flexability to fully customise the your letters of demand while still being comfortable you are using a quality document.

- Assignment of Debt (Financial Agreements)

Use Lawlive's Deeds of Assignment of Debt (Loans) to assign a debt as between companies and individuals or between each. The deeds assign rights and accordingly it is important to consider the requirements to assign a debt and the risks of doing so. Some advantages of assigning a debt are that no consideration is required for a valid legal assignment, the assignee is entitled to sue the debtor in its own name and does not need to join the assignor as a party to the action, the debtor can safely perform its obligations in favour of the assignee, the assignee is the person who can discharge the debt, and that a legal interest is obtained for value and without notice of earlier equitable interests and will be accorded priority ahead of equitable interests.

- Charges (Financial Agreements)

These templates are used when a company wishes to take a loan from a third party or an unsecured loan. There are also templates relating to the granting of a charge or mortgage. A mortgage is a method of using property (real or personal) as security for the performance of an obligation, usually the payment of a debt.

The use of these templates will formalise matters surrounding loans and charges from a company. Corresponding checklists are provided for the documents.