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The Term Loan Credit Agreement is a fundamental financing document used in Malaysian banking transactions when a borrower requires fixed-term funding for specific purposes such as capital expenditure, expansion, or asset acquisition. This agreement type is commonly used in both bilateral and syndicated lending arrangements, structured in compliance with Malaysian banking regulations, particularly the Financial Services Act 2013 and Bank Negara Malaysia guidelines. The document comprehensively addresses all aspects of the lending relationship, including facility terms, security arrangements, conditions for drawdown, ongoing obligations, and enforcement mechanisms, while incorporating market-standard provisions adapted to the Malaysian legal context.

1. Parties: Identifies and defines the Lender, Borrower, and any other parties to the agreement

2. Background: Provides context for the agreement and summarizes the transaction

3. Definitions and Interpretation: Defines key terms used throughout the agreement and sets out interpretation rules

4. The Facility: Details the loan amount, purpose, and basic terms

5. Conditions Precedent: Lists conditions that must be satisfied before drawdown

6. Drawdown: Specifies the drawdown mechanics and requirements

7. Interest: Sets out interest rate, calculation method, and payment terms

8. Repayment: Details repayment schedule and mechanics

9. Representations and Warranties: States the borrower's representations about its legal and financial status

10. Covenants: Lists positive and negative obligations of the borrower

11. Events of Default: Specifies circumstances constituting default and consequences

12. Changes to Parties: Addresses assignment and transfer provisions

13. Payments: Details payment mechanics, currency, and set-off rights

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

15. General Provisions: Contains boilerplate clauses including governing law and jurisdiction