Document background
The Facilities Agreement serves as the primary documentation for credit arrangements in Pakistan's banking sector. It is used when a financial institution extends credit facilities to corporate borrowers, establishing the legal framework for the lending relationship. The agreement must comply with Pakistani banking laws, including the Banking Companies Ordinance 1962 and State Bank of Pakistan regulations, while incorporating necessary security arrangements and enforcement mechanisms. The document typically covers facility terms, conditions precedent, drawdown procedures, repayment obligations, and security arrangements, with specific attention to local registration requirements and stamp duty obligations. This type of agreement is essential for both conventional and Islamic banking facilities in Pakistan, requiring careful consideration of local regulatory requirements and market practices.
