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Credit Agreement For Supply Of Goods
"I need a Credit Agreement for Supply of Goods for my manufacturing company to supply industrial equipment worth INR 50 crores to a distributor in Mumbai, with quarterly deliveries throughout 2025 and a revolving credit facility with 60-day payment terms."
1. Parties: Identification of the creditor/supplier and the borrower/purchaser with full legal names and addresses
2. Background: Context of the agreement, relationship between parties, and purpose of the credit facility for goods supply
3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation
4. Credit Facility: Details of the credit amount, purpose, and terms of the facility
5. Supply of Goods: Terms and conditions relating to the supply, delivery, and acceptance of goods
6. Payment Terms: Payment schedule, interest rates, fees, and payment mechanisms
7. Security: Details of any security or collateral provided for the credit facility
8. Representations and Warranties: Statements of fact and assurances given by both parties
9. Covenants: Ongoing obligations of the borrower during the term of the agreement
10. Events of Default: Circumstances constituting default and consequences thereof
11. Remedies: Rights and remedies available to parties in case of default or breach
12. Term and Termination: Duration of the agreement and circumstances for termination
13. Notices: Process and requirements for formal communications between parties
14. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction over disputes
15. General Provisions: Standard boilerplate clauses including assignment, amendments, and severability
1. Insurance: Requirements for insurance of goods or credit facility, used when specific insurance coverage is required
2. Force Majeure: Provisions for unforeseen circumstances affecting performance, important in long-term supply arrangements
3. Guarantees: Terms of any personal or corporate guarantees, included when additional security is required
4. Intellectual Property: IP rights and licenses if relevant to the supplied goods
5. Confidentiality: Provisions for protecting confidential information, important in high-value or sensitive transactions
6. Anti-Money Laundering: Compliance requirements for AML regulations, necessary for regulated entities
7. Export Controls: Compliance with export regulations, needed for international trade
8. Environmental Compliance: Environmental standards and compliance, relevant for specific industries
1. Schedule 1 - Goods Description: Detailed specification of goods to be supplied including quantity, quality, and technical specifications
2. Schedule 2 - Credit Terms: Detailed breakdown of credit facility, interest calculations, and repayment schedule
3. Schedule 3 - Security Details: Description of security or collateral including valuation and maintenance requirements
4. Schedule 4 - Delivery Schedule: Timeline and requirements for delivery of goods
5. Schedule 5 - Form of Drawdown Notice: Template for requesting disbursement under the credit facility
6. Schedule 6 - Conditions Precedent: List of documents and conditions to be satisfied before facility becomes effective
7. Schedule 7 - Forms of Certificates: Standard forms for compliance certificates and other required documentation
8. Appendix A - Key Contacts: List of authorized representatives and contact details for both parties
Authors
Manufacturing
Retail
Wholesale Trade
Industrial Equipment
Consumer Goods
Automotive
Electronics
Construction Materials
Agricultural Products
Pharmaceuticals
Textiles
Heavy Machinery
Food and Beverage
Legal
Finance
Procurement
Commercial
Credit Control
Risk Management
Operations
Supply Chain
Treasury
Contract Administration
Chief Financial Officer
Finance Director
Commercial Director
Procurement Manager
Credit Manager
Supply Chain Manager
Legal Counsel
Contract Manager
Risk Manager
Treasury Manager
Operations Director
Business Development Manager
Accounts Receivable Manager
Corporate Finance Manager
Commercial Lawyer
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General Supply Contract
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Credit Agreement For Supply Of Goods
An Indian law-governed agreement combining credit facility terms with supply of goods arrangements, establishing payment, delivery, and security terms between supplier/creditor and purchaser/borrower.
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