?> Loan Agreement Recital - C3 LAS VEGAS

Loan Agreement Recital

Title of the preamble. The preamble is usually written with the title Recitals, Where or Background, probably in capital letters or bold. They discuss some key features of the agreement, associated transaction, or transactions of the parties and help the reader understand the background before looking at the definition section. So, back to the matter: Well, things got furious: the loan was not repaid in accordance with the agreement between the parties and Qatar National Bank tried to impose the mortgage on the yacht. In the end, the court ordered that the sale of a luxury yacht and its proceeds be used to reimburse Qatar National Bank. The recitals are formulated as traditional paragraphs containing grammatically complete sentences and not as multiple clauses, starting from the original preamble. It is therefore not necessary to limit the recitals to a single sentence. It is good practice to end each recital with a period and not a semicolon. This is also preferable when it comes to salary assembly software, in which paragraphs are automatically inserted or omitted. For example, do not write: an author should also refrain from fulfilling the recitals of additional non-essential definitions (e.g. B the shares, the undertaking or the product) or a multiple of references `(as defined in Article 1)` immediately after each defined term. Often, for contracts, loan documents or security documents, the recitals preceded the operational provisions.

They are usually not automatically part of the legally binding operational agreement between the parties, but can be concluded by a third party (e.g.B. a court) is considered useful in determining the true intent of the parties, as in this case. However, it is important to consider all the documents and circumstances as a whole, as the court did, in order to have as accurate an idea as possible of the parties` intentions. Types of recital clauses. The recitals contain general information on the parties, the context of the agreement and the introduction to the agreement itself. There are different types of clauses: while this is a judgment of the High Court of England and the approach taken in this case can be used for persuasion purposes here in Scotland, the emphasis must be on this case as a reminder to the design of contracts, loan documents, etc. The Court has considered the proven principle that, in the event of inconsistency between the recitals and the tenor part of a contract, the tenor part shall prevail. As such, the correct design of the Covenant Deed and the mortgage was therefore that the EUR 5 million limit would apply only to the amount of capital due under the loan facility and that the interest, costs and recovery costs guaranteed by the Covenant Deed would not be limited. Recitals in the Treaties. Most contracts have under the title and block of the parties, but before the current text of the agreement, a set of paragraphs that are also called “preamble”, “recitals” or “where” clauses.

In addition, the court looked beyond these two documents and examined the background against which the agreement of the parties and which must be interpreted to support this construction, in particular the court looked at a secondary letter in which it was said: “The yacht mortgage is now limited to a nominal amount of € 5,000,000”. This is another indication of the parties` intention that the limit applies only to the principal amount and not to the amount or costs and expenses of collection. Content. The information mentioned in the preamble should be limited to intentions, wishes or factual assertions. It is customary to limit such declarations to substantive reservations which may have the effect of directly affecting the validity or application of the treaty. . . .