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Line Of Credit Agreement
"I need a Line of Credit Agreement for my manufacturing company to secure a RM 5 million facility from Bank Negara Malaysia, with quarterly interest payments and property collateral as security, to be effective from March 2025."
1. Parties: Identifies the lender and borrower with complete legal names and registration/identification details
2. Background: Explains the context of the agreement and the parties' intention to enter into a line of credit arrangement
3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty
4. Facility Details: Specifies the credit limit, purpose, availability period, and nature of the revolving facility
5. Interest and Fees: Details the interest rate (including calculation method), commitment fees, and other applicable charges
6. Drawdown Provisions: Specifies the procedures, conditions, and requirements for drawing down the credit facility
7. Repayment Terms: Outlines the repayment obligations, minimum payments, and payment schedules
8. Representations and Warranties: States the borrower's assertions regarding their legal status, capacity, and financial condition
9. Covenants: Lists the borrower's positive and negative obligations throughout the facility period
10. Events of Default: Defines circumstances that constitute default and the lender's rights upon occurrence
11. Termination: Specifies conditions and procedures for terminating the facility
12. General Provisions: Contains standard clauses including notices, amendments, governing law, and jurisdiction
1. Security Arrangements: Required when the facility is secured by collateral, detailing the security structure and enforcement rights
2. Guarantee Provisions: Included when there are corporate or personal guarantors for the facility
3. Insurance Requirements: Necessary when specific insurance coverage is required for secured assets or the borrower
4. Special Drawdown Conditions: Used for facilities with industry-specific or unique drawdown requirements
5. Cross-Default Provisions: Included when the borrower has other significant financial obligations or facilities
6. Islamic Banking Provisions: Required when the facility needs to comply with Shariah principles
7. Foreign Exchange Provisions: Necessary when the facility involves multiple currencies
8. Syndication Provisions: Included when the facility involves multiple lenders
1. Facility Terms Schedule: Details specific financial terms including credit limit, interest rates, fees, and charges
2. Conditions Precedent: Lists all documents and conditions required before the facility becomes available
3. Drawdown Request Form: Standard form for requesting drawdowns under the facility
4. Security Documents List: Comprehensive list of all security documents related to the facility
5. Repayment Schedule: If applicable, details the minimum repayment schedule and calculation method
6. Compliance Certificate: Template for periodic financial covenant compliance reporting
7. Fee Schedule: Detailed breakdown of all applicable fees and charges
8. Permitted Security Interests: List of pre-approved security interests or liens that may exist
Authors
Banking and Financial Services
Manufacturing
Real Estate and Construction
Retail and Commerce
Technology and Communications
Healthcare
Agriculture
Energy and Resources
Transportation and Logistics
Professional Services
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Banking
Credit Analysis
Operations
Company Secretarial
Business Development
Chief Financial Officer
Finance Director
Treasury Manager
Credit Risk Manager
Legal Counsel
Compliance Officer
Relationship Manager
Credit Analyst
Corporate Banking Manager
Finance Manager
Company Secretary
Risk Officer
Banking Operations Manager
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