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Secured Line Of Credit Agreement
"I need a Secured Line of Credit Agreement for my manufacturing company to secure a $2M credit facility against our equipment and inventory, with quarterly financial reporting requirements and the ability to draw down in either CAD or USD."
1. Parties: Identification of the lender and borrower(s), including full legal names and addresses
2. Background: Context of the agreement and general purpose of the credit facility
3. Definitions: Defined terms used throughout the agreement
4. The Credit Facility: Details of the credit facility including amount, purpose, availability, and drawdown procedures
5. Interest and Fees: Interest rate calculations, payment terms, and applicable fees
6. Security: Description of the security being provided and perfection requirements
7. Conditions Precedent: Conditions that must be met before the credit facility becomes available
8. Representations and Warranties: Borrower's statements about their legal and financial status
9. Covenants: Positive and negative obligations of the borrower during the term of the agreement
10. Events of Default: Circumstances that constitute default and consequences thereof
11. Enforcement: Lender's rights and remedies upon default
12. General Provisions: Standard legal provisions including notices, amendments, and governing law
1. Guarantees: Required when there are personal or corporate guarantors for the credit facility
2. Insurance: Detailed insurance requirements when specific insurance coverage is required for the collateral
3. Environmental Matters: Include when the security includes real property or business assets with environmental risks
4. Multiple Borrowers: Joint and several liability provisions when there are multiple borrowers
5. Currency Provisions: Required when the facility allows for multiple currencies
6. Assignment and Participation: Include when the lender wants the right to assign or sell participations in the loan
7. Priority and Subordination: Required when there are multiple secured creditors or subordinated debt
1. Schedule A - Definitions: Detailed list of defined terms used in the agreement
2. Schedule B - Security Description: Detailed description of all assets being provided as security
3. Schedule C - Drawdown Request Form: Standard form for requesting advances under the credit facility
4. Schedule D - Compliance Certificate: Form for periodic confirmation of compliance with financial covenants
5. Schedule E - Permitted Liens: List of existing liens or encumbrances permitted under the agreement
6. Schedule F - Financial Covenants: Detailed calculations and requirements for financial covenants
7. Appendix 1 - Fee Schedule: Detailed breakdown of all applicable fees and charges
8. Appendix 2 - Required Insurance: Specific insurance requirements for the security
Authors
Banking & Financial Services
Real Estate
Manufacturing
Retail
Construction
Technology
Agriculture
Transportation & Logistics
Healthcare
Professional Services
Energy & Resources
Wholesale & Distribution
Legal
Finance
Treasury
Credit
Risk Management
Compliance
Corporate Secretariat
Operations
Commercial Banking
Security Administration
Chief Financial Officer
Treasury Manager
Finance Director
Credit Manager
Risk Manager
Commercial Lending Officer
Corporate Lawyer
Banking Lawyer
Financial Controller
Accounts Manager
Corporate Secretary
Compliance Officer
Security Registration Specialist
Credit Analyst
Portfolio Manager
Banking Relationship Manager
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