Board Resolution for Unsecured Loan from Company

1. Purpose of the Resolution

This board resolution is made to formalize the approval of an unsecured loan to be granted by [Company Name] to [Borrower Name]. The purpose of this resolution is to outline the terms, conditions, and responsibilities associated with this loan and to ensure that all legal and organizational protocols are adhered to.

2. Background Information

[Company Name] has been approached by [Borrower Name] for an unsecured loan amounting to [Loan Amount]. After reviewing the borrower’s financial status, business plan, and overall credibility, the board has decided to proceed with the loan to support [specific reason, e.g., business expansion, working capital needs, etc.].

3. Terms of the Loan

The key terms and conditions of the unsecured loan are as follows:

3.1 Loan Amount
The total loan amount approved is [Loan Amount].

3.2 Interest Rate
The interest rate applicable to this loan will be [Interest Rate] per annum.

3.3 Repayment Terms
The loan will be repaid in [Number of Installments] installments over a period of [Repayment Period] months/years. The first installment will be due on [First Installment Due Date].

3.4 Default Terms
In the event of default, [Company Name] reserves the right to take appropriate legal actions to recover the outstanding amount. The default terms will include [Details of Default Terms, e.g., late fees, penalties].

4. Responsibilities

4.1 Responsibilities of [Borrower Name]
[Borrower Name] is required to adhere to the repayment schedule and maintain accurate financial records related to the loan.

4.2 Responsibilities of [Company Name]
[Company Name] will disburse the loan amount upon signing this resolution and will ensure that all legal documents are prepared and executed in a timely manner.

5. Documentation

The following documents will be prepared and signed:

5.1 Loan Agreement
A formal loan agreement will be drafted outlining all terms and conditions. This agreement will be signed by both parties and kept on record.

5.2 Security Documentation
Although the loan is unsecured, any additional documentation required by the company’s policies will be executed.

6. Authorizations

6.1 Authorized Signatories
The following individuals are authorized to sign the loan agreement and any other necessary documents:

• [Name], [Title]
• [Name], [Title]

6.2 Resolution Approval
This resolution has been approved by the board of directors of [Company Name] during the meeting held on [Date of Meeting]. The resolution is effective as of [Effective Date].

7. Conclusion

The board of directors of [Company Name] hereby approves the issuance of the unsecured loan to [Borrower Name] under the terms and conditions outlined in this resolution. This resolution is binding and will be enforced as per the outlined terms.

8. Signature

8.1 Board Chairman
[Name]
[Title]
[Date]

8.2 Board Secretary
[Name]
[Title]
[Date]

8.3 Company Seal
[Seal of the Company]

9. Appendices

9.1 Appendix A
Loan Agreement Template

9.2 Appendix B
List of Authorized Signatories

9.3 Appendix C
Board Meeting Minutes

10. Contact Information

For any queries related to this resolution, please contact:

10.1 Company Secretary
[Name]
[Phone Number]
[Email Address]

10.2 Legal Advisor
[Name]
[Phone Number]
[Email Address]

11. Filing and Record Keeping

A copy of this resolution and all associated documentation will be filed in the company’s official records and made available for review upon request.

12. Effective Date

This resolution is effective from [Effective Date].