Term Sheet Bilateral Loan
Term Sheet Bilateral Loan
This Term Sheet outlines the basic terms and conditions of a proposed bilateral loan agreement between [YOUR COMPANY NAME] ("Lender") and Global Ventures Inc. ("Borrower"). This Term Sheet is not intended to be a legally binding agreement but serves as a basis for the preparation of definitive loan documentation.
1. Loan Overview
1.1 Loan Amount
The Lender agrees to provide a loan to the Borrower in the principal amount of $10,000,000, subject to the terms and conditions set forth in this Term Sheet.
1.2 Purpose of Loan
The loan will be utilized by the Borrower for business expansion, including the acquisition of new assets and working capital.
1.3 Currency
The loan shall be denominated in U.S. Dollars (USD).
2. Interest Rate
2.1 Interest Rate
The loan shall bear interest at a rate of 5.25% per annum, calculated on the basis of 360 days.
2.2 Interest Payment
Interest shall be payable quarterly in arrears, commencing on January 1, 2061, with the first payment due on April 1, 2061.
3. Repayment Terms
3.1 Tenor
The loan shall have a maturity date of December 31, 2070, which is 10 years from the disbursement date.
3.2 Amortization Schedule
The principal amount shall be repaid in equal installments of $1,000,000, commencing on January 1, 2062, with the final payment due on December 31, 2070.
3.3 Prepayment
The Borrower shall have the right to prepay the loan, in whole or in part, without penalty, upon giving 30 days’ prior written notice to the Lender.
4. Collateral
4.1 Security
The loan shall be secured by a first-ranking mortgage over the Borrower’s property located at Silicon Valley, CA 94043.
4.2 Valuation of Collateral
The collateral shall be valued at $15,000,000, based on an independent appraisal conducted by Silicon Appraisal Services on June 1, 2060.
4.3 Maintenance of Collateral
The Borrower shall maintain the collateral in good condition and provide the Lender with evidence of adequate insurance coverage.
5. Covenants
5.1 Financial Covenants
The Borrower agrees to maintain a minimum Debt Service Coverage Ratio (DSCR) of 1.25 throughout the term of the loan.
5.2 Affirmative Covenants
The Borrower shall:
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Provide quarterly financial statements to the Lender.
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Comply with all applicable laws and regulations.
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Maintain the current level of operations and management.
5.3 Negative Covenants
The Borrower shall not:
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Incur additional debt without the prior written consent of the Lender.
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Dispose of any collateral without the prior written consent of the Lender.
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Make any material changes to business operations without the prior written consent of the Lender.
6. Conditions Precedent
6.1 Documentation
The following documents must be executed and delivered before the loan disbursement:
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Loan Agreement
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Security Agreement
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Promissory Note
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Mortgage Deed
6.2 Other Conditions
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Approval from the California Department of Financial Protection and Innovation (DFPI).
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Satisfactory completion of due diligence by the Lender.
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No material adverse change in the Borrower’s financial condition.
7. Representations and Warranties
7.1 Borrower Representations
The Borrower represents and warrants that:
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It is duly organized and validly existing under the laws of the State of California.
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It has the legal power to enter into and perform its obligations under this Term Sheet.
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The execution, delivery, and performance of the loan documents do not violate any existing agreements or laws.
8. Governing Law and Jurisdiction
8.1 Governing Law
This Term Sheet and any definitive loan documentation shall be governed by and construed in accordance with the laws of the State of California.
8.2 Jurisdiction
The parties submit to the exclusive jurisdiction of the courts of Santa Clara County, California, for the resolution of any disputes arising from this Term Sheet.
9. Confidentiality
9.1 Confidential Information
The terms and conditions of this Term Sheet, as well as any information exchanged between the parties in connection with the loan, shall remain confidential and shall not be disclosed to any third party without the prior written consent of the other party, except as required by law.
10. Miscellaneous
10.1 Non-Binding Nature
This Term Sheet is intended to summarize the principal terms of the proposed loan and is not intended to be a legally binding agreement, except for the provisions relating to confidentiality (Section 9), governing law (Section 8), and jurisdiction (Section 8).
10.2 Expiration
This Term Sheet shall expire on December 31, 2060, unless the definitive loan documentation has been executed by both parties before such date.
[YOUR COMPANY NAME]:
[YOUR NAME]
Chief Financial Officer
December 1, 2060
Global Ventures Inc.:
John Doe
Chief Executive Officer
December 1, 2060
