Company Loan Facility Agreement - both Division 7A and 974 [CP]
This is a CPDoc. It may be generated from a completed Client Profile.
COMPANY/ASSOCIATE LOAN FACILITY AGREEMENT DIV 7A
This Agreement between a company and up to four associates, is intended to ensure that neither the company nor the associates breach the provisions of Division 7A of the Income Tax Assessment Act. It also ensures that shareholder loans/advances to the company are made in accordance with the provisions of Division 974 of the Income Tax Assessment Act.
Section 109N of the Income Tax Assessment Act requires that prior to a loan being made, the parties need to enter into a written loan agreement, that the rate of interest payable in respect to the loan equals or exceeds the benchmark interest rate, and the term of the loan does not exceed seven years or, if it does, it complies with the requirements of Section 109N. Our agreement conforms to each requirement.
The Agreement provides you with the benefit of Minutes that you need to complete, a comprehensive Memorandum of Advice and a detailed 17 page Division 7A Agreement.
If you require any amendments to the document after it has been returned to you, one of our lawyers can make those amendments however the cost for this work is
not included in the price of this document. Please contact us on info@ampalmer.com.au for further assistance.