Document background
The Term Facility Agreement is a crucial document used in Indian banking and finance transactions to document term loan facilities provided by banks or financial institutions to borrowers. It is commonly used for both corporate and project financing needs, setting out the detailed terms and conditions of the lending arrangement. The agreement must comply with Indian banking regulations, including RBI guidelines and the Banking Regulation Act 1949, while incorporating necessary provisions under the Indian Contract Act 1872. It typically includes comprehensive provisions on facility terms, drawdown mechanics, repayment schedules, security structure, representations, warranties, covenants, and events of default. The document is essential for any significant lending transaction in India and requires careful consideration of local law requirements, including stamp duty and registration obligations.
