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The Line of Credit Agreement is a fundamental financial instrument in Irish business and personal banking, providing flexible access to credit within a pre-approved limit. This document is typically used when a borrower requires ongoing access to funds rather than a one-time loan, making it particularly suitable for business working capital needs or personal financial management. The agreement must comply with Irish financial services legislation, including the Consumer Credit Act 1995, Central Bank regulations, and applicable EU directives. It details credit limits, drawing mechanisms, interest calculations, repayment terms, security arrangements (if applicable), and both parties' rights and obligations. The document is adaptable for various borrower types, from individuals to large corporations, while maintaining compliance with Irish regulatory requirements and banking practices.

1. Parties: Identifies the lender and borrower with their full legal names and addresses

2. Background: Recitals explaining the context of the agreement and the parties' intention to enter into a line of credit arrangement

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules of interpretation

4. The Facility: Details the nature, amount, and purpose of the line of credit facility

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

6. Drawdown: Specifies the procedures and requirements for drawing down funds under the facility

7. Interest and Fees: Sets out interest rates, calculation methods, and all applicable fees

8. Repayment and Prepayment: Details repayment terms, minimum payments, and prepayment provisions

9. Representations and Warranties: Contains borrower's confirmations about their legal and financial status

10. Covenants: Lists ongoing obligations of the borrower during the term of the facility

11. Events of Default: Defines circumstances that constitute default and the lender's remedies

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

13. Notices: Specifies how formal communications between parties should be made

14. Calculations and Certificates: Establishes the basis for financial calculations and certifications

15. General Provisions: Contains boilerplate clauses including severability, entire agreement, and amendments

16. Governing Law and Jurisdiction: Specifies Irish law as governing law and jurisdiction for disputes