Given the total amounts advanced in any period will often be unknown, the Division 7A agreements are structured to allow flexibility.
In particular, the agreements confirm that any entries in the lender’s general ledger of advances made are conclusive proof of the dates and amounts that the lender has lent to the borrower.
There is also the option for the parties to sign a formal drawdown notice to confirm any advances made from time to time. A template drawdown notice can be provided.
Care must however be taken in relation to using the drawdown acknowledgement provided with the Division 7A agreement that forms part of the company constitution. This is because the template provided assumes the borrower is a single individual (not acting in their capacity as trustee).
If the borrower is not a single individual, specific amendments will be required. View can assist in this regard and provide a suggested scope of work and fixed pricing.
The Division 7A Drawdown Acknowledgement package available from View Legal can be used for arrangements where the borrower is not a single individual, assuming there is already a compliant Division 7A Loan Agreement in place between the relevant parties.