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The Trade Finance Agreement serves as the primary legal framework for trade finance facilities in Malaysia, enabling businesses to access various trade finance products and services from financial institutions. This document is essential when companies require financing for international trade activities such as import/export operations, supply chain financing, or working capital for trade-related activities. The agreement must comply with Malaysian banking regulations, including the Financial Services Act 2013 and relevant Bank Negara Malaysia directives, while also considering international trade practices and standards. It becomes particularly relevant when businesses need letter of credit facilities, bank guarantees, trade loans, or other trade finance products to support their cross-border trading activities.

1. Parties: Identifies and defines the financial institution(s) and the customer(s), including their registered addresses and registration numbers

2. Background: Sets out the context of the agreement, including the nature of the customer's business and their trade finance requirements

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

4. Facility Terms: Details the type, amount, and purpose of the trade finance facility

5. Conditions Precedent: Lists the conditions that must be satisfied before the facility becomes available

6. Utilization: Specifies how and when the customer can access the facility

7. Interest and Fees: Details all applicable interest rates, fees, and charges

8. Repayment Terms: Specifies repayment obligations, schedules, and mechanisms

9. Security: Outlines the security arrangements required for the facility

10. Representations and Warranties: Lists the customer's confirmations about their legal and financial status

11. Covenants: Sets out the customer's ongoing obligations throughout the facility period

12. Events of Default: Defines circumstances that would constitute a default and the consequences

13. Bank's Rights and Remedies: Outlines the bank's powers and remedies in various circumstances

14. General Provisions: Contains standard clauses on notices, amendments, assignments, etc.

15. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and establishes jurisdiction