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Master Lending Agreement for Australia

Master Lending Agreement Template for Australia

A comprehensive legal agreement governed by Australian law that establishes the framework for lending arrangements between a financial institution and a borrower. The agreement sets out the terms and conditions for various credit facilities, including drawdown mechanisms, interest calculations, repayment terms, security arrangements, and ongoing obligations of the parties. It incorporates requirements under Australian financial services legislation, including the National Consumer Credit Protection Act and Personal Property Securities Act, while providing flexibility to accommodate multiple facilities and future lending arrangements.

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Master Lending Agreement

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What is a Master Lending Agreement?

The Master Lending Agreement serves as the primary documentation framework for establishing and governing lending relationships between financial institutions and borrowers in Australia. It is designed to accommodate multiple credit facilities under a single umbrella agreement, streamlining the documentation process for future lending arrangements. The agreement incorporates key requirements under Australian financial services legislation, including the National Consumer Credit Protection Act 2009 (Cth), Personal Property Securities Act 2009 (Cth), and relevant banking regulations. It is particularly useful for ongoing lending relationships where multiple facilities may be required over time, providing a consistent set of core terms while allowing flexibility through facility-specific schedules. The document includes comprehensive provisions for drawdown mechanisms, security arrangements, covenants, events of default, and regulatory compliance matters.

What sections should be included in a Master Lending Agreement?

1. Parties: Identification of the lender and borrower, including ABN/ACN and addresses

2. Background: Context of the agreement and relationship between the parties

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation

4. Facility Establishment: Terms for establishing individual credit facilities under the master agreement

5. Conditions Precedent: Conditions that must be satisfied before any facility becomes available

6. Drawdown Procedures: Process and requirements for requesting and making drawdowns under facilities

7. Interest and Fees: Calculation and payment of interest, fees, and charges

8. Repayment Terms: General repayment obligations and mechanisms

9. Representations and Warranties: Standard representations and warranties given by the borrower

10. General Undertakings: Ongoing obligations of the borrower throughout the facility term

11. Financial Covenants: Financial metrics and ratios the borrower must maintain

12. Events of Default: Circumstances constituting default and consequences

13. Security: General security provisions and requirements

14. Payments and Calculations: Payment mechanics, currency provisions, and calculation conventions

15. Changes to Parties: Assignment and transfer provisions

16. Confidentiality: Obligations regarding confidential information

17. Notices: Communication requirements and contact details

18. General Provisions: Standard boilerplate provisions including governing law, jurisdiction, and severability

What sections are optional to include in a Master Lending Agreement?

1. Syndication Provisions: Required when multiple lenders may participate in the facilities

2. Increased Costs and Market Disruption: Provisions dealing with changes in law or market circumstances affecting the lender's costs

3. Multi-currency Provisions: Required when facilities may be provided in multiple currencies

4. Security Trustee Provisions: Required when security is held by a security trustee for multiple lenders

5. Electronic Transaction Provisions: Detailed provisions for electronic execution and communications

6. Cross-Border Provisions: Required when borrower or security providers are in multiple jurisdictions

7. Guarantee Provisions: Required when guarantees form part of the security structure

8. Special Purpose Vehicle Provisions: Required when the borrower is an SPV with specific covenants

What schedules should be included in a Master Lending Agreement?

1. Facility Specific Terms: Detailed terms for each type of facility available (term loans, revolving facilities, etc.)

2. Form of Drawdown Notice: Template for borrower to request drawdowns

3. Form of Compliance Certificate: Template for periodic compliance reporting

4. Calculation of Interest and Fees: Detailed methodology for calculating interest and fees

5. Forms of Security Documents: Templates or terms for required security documents

6. Required Insurance: Details of insurance requirements and minimum coverage

7. Permitted Security Interests: List of security interests permitted under the agreement

8. Form of Accession Deed: Template for new parties to join the agreement

9. Financial Reporting Requirements: Detailed requirements for financial reporting and certificates

10. Address Details and Contact Information: Comprehensive contact details for all parties and authorized representatives

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Cost

Free to use
Relevant legal definitions


































































Clauses




































Relevant Industries

Banking

Financial Services

Commercial Lending

Corporate Finance

Investment Banking

Private Equity

Asset Management

Real Estate Finance

Infrastructure Finance

Project Finance

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit

Commercial Banking

Corporate Banking

Documentation

Transaction Management

Relationship Management

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Legal Counsel

Senior Legal Counsel

Compliance Officer

Risk Manager

Credit Manager

Relationship Manager

Commercial Lending Manager

Corporate Banking Manager

Finance Manager

Company Secretary

Documentation Manager

Transaction Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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