Document background
The Credit Facility Letter is a fundamental document in Irish banking practice, used when a financial institution extends credit to corporate or individual borrowers. It serves as both an offer letter and, upon acceptance, the primary facility agreement between the parties. The document must comply with Irish banking regulations, including the Consumer Credit Act 1995, Central Bank regulations, and relevant EU directives incorporated into Irish law. It typically includes detailed information about the facility amount, purpose, interest rates, fees, repayment terms, conditions precedent, representations, warranties, and covenants. The letter format is preferred in the Irish market for its clarity and accessibility, particularly for smaller facilities, while maintaining legal enforceability. The document can be used for various types of credit facilities, including term loans, revolving credit facilities, and overdrafts, and can be adapted for both consumer and commercial lending contexts.
