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Credit Term Agreement
"I need a Credit Term Agreement for a manufacturing company in Penang, with a credit facility of RM 2 million, requiring monthly repayments starting March 2025, and including machinery as collateral security."
1. Parties: Identifies and provides full details of the creditor and debtor, including registration numbers for companies
2. Background: Explains the context of the credit arrangement and the purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty
4. Credit Terms: Specifies the credit amount, interest rate, and payment terms
5. Payment Obligations: Details the debtor's obligations regarding payments, including timing and method
6. Interest and Fees: Specifies all applicable interest rates, late payment charges, and administrative fees
7. Security: Describes any security or collateral provided for the credit facility
8. Representations and Warranties: States the legal promises and factual assertions made by both parties
9. Events of Default: Lists circumstances that constitute default and their consequences
10. Termination: Outlines conditions and procedures for terminating the agreement
11. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and establishes jurisdiction for disputes
1. Insurance Requirements: Required when specific insurance coverage is needed for the credit facility
2. Guarantee Provisions: Included when a third-party guarantee is part of the credit arrangement
3. Cross-Default: Used when the agreement needs to reference other credit facilities or agreements
4. Assignment: Included when either party may need to transfer their rights or obligations
5. Force Majeure: Optional clause for circumstances beyond parties' control affecting performance
6. Refinancing Options: Included when offering possibilities for restructuring the credit terms
1. Schedule 1 - Payment Schedule: Detailed breakdown of payment amounts and due dates
2. Schedule 2 - Interest Rate Calculations: Formula and examples of interest calculations
3. Schedule 3 - Security Details: Detailed description of any collateral or security provided
4. Appendix A - Required Documents: List of documents required for credit approval and maintenance
5. Appendix B - Fee Schedule: Comprehensive list of all applicable fees and charges
6. Appendix C - Contact Information: Contact details for notices and communications between parties
Authors
Banking
Financial Services
Retail
Manufacturing
Construction
Trade and Commerce
Technology
Agriculture
Healthcare
Education
Logistics
Real Estate
Legal
Finance
Credit Risk
Compliance
Treasury
Commercial
Corporate Banking
Credit Operations
Collections
Risk Management
Account Management
Chief Financial Officer
Finance Director
Credit Manager
Legal Counsel
Compliance Officer
Risk Manager
Financial Controller
Treasury Manager
Account Manager
Credit Analyst
Commercial Director
Banking Relationship Manager
Corporate Finance Manager
Credit Risk Officer
Collections Manager
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