Novation Agreement
Assist a nonprofit helping African founders create dignified jobs by drafting a novation agreement and new template loan agreement.
Referred by:
The True Foundry team is seeking assistance drafting a Novation Agreement. They would like to transition existing investor loans, originally made directly to portfolio companies before their 501(c)(3)(which is incorporated in MD) was established, so that True Foundry becomes the borrower and can pool risk within their micro-fund.
This transition is at the behest of the investors and they are eager for the new arrangement. Many of the investors are in the U.S., while the portfolio companies are primarily based in Ghana. The original loan agreements state the governing law is Ghana. But the True Foundry team understands the attorney will be speaking from the US perspective.
The True Foundry team would then appreciate assistance restructuring the loans and drafting the new template loan documents for True Foundry to loan the money from their micro-fund to their portfolio companies.
Finally, after novating their loans to True Foundry, some investors have indicated that they would like to forgive the debt for tax deductions. The True Foundry team is seeking guidance on the steps to do this, as well as assistance drafting the necessary documentation.