Accession Agreement between Acceding Lenders and Administrative Agent for Lenders
What this document covers
The Accession Agreement between Acceding Lenders and Administrative Agent for Lenders, commonly known as an accession agreement, enables new parties to join an existing shareholder agreement in a private company. This form facilitates the acquisition of shares by new investorsâeither via transfer from existing shareholders or through the issuance of new shares by the company. By signing the accession agreement, the new investors become bound by the terms of the original shareholders' agreement without the need for drafting a new contract each time there is a change in the investment structure.
What’s included in this form
- Identification of parties: Lists the Acceding Lenders, the Borrower (Alco), and the Administrative Agent.
- Accession to the Credit Agreement: States that each Acceding Lender agrees to join the existing credit agreement as if they were original parties.
- Commitments: Specifies the financial commitments of each Acceding Lender.
- Representations and warranties: Outlines assurances made by each Acceding Lender regarding their authority and understanding of the agreement.
- Effectiveness provisions: Details how and when the agreement becomes effective.
- Governing law: Indicates that New York law governs the agreement.
Common use cases
This form is necessary when new lenders wish to become part of an existing credit agreement involving a private company. It is applicable in scenarios such as when the company needs additional funding, new investors are coming on board, or when existing shareholders are transferring their shares to new lenders. By using this form, stakeholders ensure that the rights and responsibilities of new and existing shareholders are clearly defined.
Who should use this form
- Private companies looking to add new lenders to their capital structure.
- Investors or lenders intending to invest in a private company's shares.
- Current shareholders who are transferring shares to new investors.
- Administrative agents managing the documentation for lender agreements.
How to complete this form
- Identify all parties involved, including the Acceding Lenders and the Administrative Agent.
- Specify the effective date of the accession agreement.
- Enter the commitments from each Acceding Lender alongside their signatures in the designated sections.
- Ensure all representations and warranties are acknowledged by each Acceding Lender.
- File the agreement along with any required documents as specified in the Credit Agreement.
Does this form need to be notarized?
This form does not typically require notarization unless specified by local law. However, it's advisable to check any local requirements regarding notarization to ensure compliance, especially if the form will be executed in different jurisdictions.
Get your form ready online
Our built-in tools help you complete, sign, share, and store your documents in one place.
Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Avoid these common issues
- Not providing complete and accurate information about each Acceding Lender's commitment.
- Failing to ensure that all parties sign the agreement, which can lead to legal enforceability issues.
- Omitting the effective date, which is crucial for determining the timeline of obligations and rights.
- Neglecting to review the governing law clause, leading to potential legal complications in other jurisdictions.
Why use this form online
- Convenient access and immediate download of the form, saving time and effort.
- Editability to customize the document according to specific lender and investment details.
- Reliability of professionally drafted templates by licensed attorneys, ensuring legal soundness.
