Deed of novation: for an unsecured bilateral facility agreement
Deed of novation: for an unsecured bilateral facility agreement

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • Deed of novation: for an unsecured bilateral facility agreement
  • Parties
  • Background
  • EXECUTION PAGE
  • The Schedule

This Deed is made on [insert day and month] 20[insert year]

Parties

  1. 1

    [insert name of Transferor] of [insert address] (the Transferor);

  1. 2

    [insert name of Transferee] of [insert address] (the Transferee); and

  1. 3

    [insert name of Borrower], a company incorporated in England and Wales with registered number [insert company number] whose registered office is at [insert address] (the Borrower).

Background

  1. (A)

    The Transferor made available a loan facility to the Borrower on the terms and conditions set out in the Facility Agreement (as defined below).

  2. (B)

    The Transferor has agreed with effect from the Novation Date to release and discharge the Borrower from its obligations under the Facility Agreement and the Borrower has agreed to transfer its obligations under the Facility Agreement to the Transferee.

  3. (C)

    The Borrower has agreed with effect from the Novation Date to release and discharge the Transferor from its obligations under the Facility Agreement on the understanding that with effect from the Novation Date the Transferee will undertake to perform the Transferor's obligations under the Facility Agreement and to be bound by its terms.

  4. (D)

    [[insert further details if required]]

It is agreed as follows:

  1. 1

    Definitions and interpretation

    1. 1.1