tiktok³ÉÈË°æ

The Standby Credit Agreement is a crucial financial instrument in Canadian business operations, providing companies with access to contingent funding or liquidity support. This agreement is typically used when a borrower requires a backup credit facility that can be drawn upon when needed, such as for working capital requirements, supporting commercial paper programs, or meeting unexpected financial obligations. The document, governed by Canadian law, includes detailed provisions on facility limits, drawdown mechanics, conditions for utilization, pricing structures, and compliance requirements. It must comply with Canadian federal banking regulations and provincial laws, particularly in areas of security registration and enforcement. The agreement is especially relevant in times of market uncertainty or when companies need to demonstrate available liquidity support to rating agencies or stakeholders.

1. Parties: Identification of the lender, borrower, and any guarantors or other relevant parties

2. Background: Context of the agreement and general purpose of the standby credit facility

3. Definitions: Detailed definitions of terms used throughout the agreement

4. The Facility: Core terms of the standby credit facility including amount, purpose, and availability period

5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

6. Utilization: Process and requirements for drawing down the facility

7. Interest and Fees: Interest rates, commitment fees, and other charges applicable to the facility

8. Repayment and Prepayment: Terms for repayment of drawn amounts and any prepayment provisions

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Covenants: Ongoing obligations of the borrower during the term of the facility

11. Events of Default: Circumstances that constitute default and their consequences

12. Changes to Parties: Provisions regarding assignment and transfer rights

13. Administration: Operational aspects including notices, calculations, and payment mechanisms

14. Governing Law and Jurisdiction: Law governing the agreement and courts having jurisdiction

15. Execution: Signature blocks and execution requirements