A termination of loan agreement is a legal document that is signed when the term of the original loan agreement reaches completion. This document serves to release both the lender and borrower of their obligatory roles set forth in the original loan agreement. Most commmonly, this agreement is drawn up and signed when the borrower pays back the loan amount, plus taxes, interest, and any other applicable fees.
A termination of loan agreement is not the same thing as a loan cancellation and release agreement. The main difference between the two is that while a termination of loan agreement typically requires payback of the loan as agreed, the loan cancellation and release agreement is typically put into motion when both parties agree to cancel the contract, regardless of payback status.
Below is a list of common sections included in Termination Of Loan Agreements. These sections are linked to the below sample agreement for you to explore.
TERMINATION OF LOAN AGREEMENT
TERMINATION OF LOAN AGREEMENT, dated as of April 14, 2016 (this “ Termination ”), among Navios Maritime Holdings Inc., a Marshall Islands corporation (the “ Borrower ”) and Navios Maritime Acquisition Corporation, a Marshall Islands corporation, as lender (in such capacity, the “ Lender ”).
W I T N E S S E T H:
WHEREAS, the Borrower and Lender entered into that certain agreement, dated as of March 9, 2016 (the “ Loan Agreement ”), pursuant to which the Lender agreed to make loans under a $50,000,000 revolving loan facility to the Borrower upon the terms and subject to the conditions set forth therein;
WHEREAS, Clause 15.1 of the Loan Agreement provides that any term of the Loan Agreement may be amended with the agreement of the Lender and the Borrower;
WHEREAS, the Board of Directors of each of the Borrower and Lender have determined that it is in the best interest of its respective companies to terminate the Loan Agreement;
NOW, THEREFORE, the Borrower and the Lender each hereby agrees as follows:
| 1. | Amendment to Clause 5 .3 . Clause 5.3 of the Loan Agreement is hereby amended to add the following sentence to the end of Clause 5.3: |
“The Borrower and NNA may immediately terminate this Agreement at any time by written agreement between the parties.”
| 2. | Agreement to Terminate . The Borrower and the Lender hereby agree to terminate the Loan Agreement as of the date hereof. |
| 3. | Counterparts . This Termination may be executed by one or more of the parties hereto on any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument. |
Unless otherwise defined herein, terms that are defined in the Loan Agreement and used herein are so used as so defined.
IN WITNESS WHEREOF, the undersigned have caused this Termination to be duly executed and delivered as of the date first above written.
NAVIOS MARITIME HOLDINGS INC., as Borrower
By: /s/ Vasiliki Papaefthymiou
Name: Vasiliki Papaefthymiou
Title: Executive Vice President-Legal
NAVIOS MARITIME ACQUISITION
CORPORATION, as Lender
By: /s/ Leonidas Korres
Name: Leonidas Korres
Title: Chief Financial Officer
Reference:
Security Exchange Commission - Edgar Database, EX-4.47 2 d150923dex447.htm EX-4.47, Viewed August 13, 2022, View Source on SEC.
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