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Revolving Line Of Credit Agreement for Australia

Revolving Line Of Credit Agreement Template for Australia

This document is a comprehensive template for a Revolving Line of Credit Agreement governed by Australian law, designed to establish and regulate an ongoing credit facility between a financial institution and a borrower. It incorporates all necessary provisions to comply with Australian financial services regulations, including the National Consumer Credit Protection Act 2009 and the National Credit Code. The agreement details the terms of the revolving facility, including credit limits, drawdown procedures, interest calculations, repayment terms, security arrangements, and borrower obligations, while ensuring flexibility for various business purposes and compliance with Australian regulatory requirements.

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What is a Revolving Line Of Credit Agreement?

The Revolving Line of Credit Agreement Template is designed for use in the Australian market where businesses require flexible access to credit facilities. This document establishes the legal framework for a revolving credit arrangement between financial institutions and borrowers, providing ongoing access to funds up to a predetermined limit. The agreement is structured to comply with Australian financial services regulations, including the NCCP Act, ASIC requirements, and relevant banking laws. It is particularly useful for businesses seeking working capital solutions, expansion funding, or seasonal financing needs. The template includes comprehensive provisions for facility operation, security arrangements, compliance requirements, and risk management, adaptable to various business sizes and sectors while maintaining regulatory compliance.

What sections should be included in a Revolving Line Of Credit Agreement?

1. Parties: Identification of the lender and borrower with full legal names and details

2. Background: Context of the agreement and purpose of the credit facility

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. The Facility: Details of the credit facility including limit, purpose, and availability period

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

6. Drawdown: Processes and requirements for drawing down the facility

7. Interest and Fees: Interest calculation, rates, payment periods, and applicable fees

8. Repayment: Terms for repayment including minimum payments and prepayment provisions

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Undertakings: Ongoing obligations of the borrower during the facility term

11. Events of Default: Circumstances constituting default and consequences

12. Security: Details of any security arrangements supporting the facility

13. General Provisions: Standard legal provisions including notices, amendments, and governing law

What sections are optional to include in a Revolving Line Of Credit Agreement?

1. Guarantor Provisions: Required when the facility is guaranteed by a third party

2. Multiple Borrowers: Required when there are multiple borrowers with joint and several liability

3. Review Events: Used when specific events trigger a review of the facility

4. Market Disruption: Provisions for handling market disruption events affecting interest rates

5. Increased Costs: Provisions for passing on increased costs due to regulatory changes

6. Financial Covenants: Required for business borrowers with specific financial performance requirements

7. Special Drawing Conditions: Used when specific conditions apply to certain types of drawings

8. Cross-Default: Required when default under other facilities affects this agreement

What schedules should be included in a Revolving Line Of Credit Agreement?

1. Facility Details: Specific terms of the facility including limit, interest rates, and fees

2. Drawing Notice: Form of notice required for drawdown requests

3. Conditions Precedent Documents: List of required documents and conditions to be satisfied

4. Security Documents: Details of security arrangements and related documentation

5. Compliance Certificate: Form for periodic compliance certification

6. Financial Covenants Calculations: Formulas and methods for calculating financial covenants

7. Fee Schedule: Detailed breakdown of all applicable fees and charges

8. Privacy Notice and Consent: Required privacy disclosures and consent forms under Australian law

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

Cost

Free to use
Relevant legal definitions
















































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Relevant Industries

Banking and Financial Services

Manufacturing

Retail

Construction

Technology

Healthcare

Agriculture

Mining

Transport and Logistics

Professional Services

Real Estate

Hospitality

Relevant Teams

Legal

Finance

Treasury

Credit and Risk

Compliance

Operations

Business Development

Corporate Banking

Commercial Lending

Account Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Credit Manager

Financial Controller

Legal Counsel

Compliance Officer

Risk Manager

Banking Relationship Manager

Credit Analyst

Corporate Lawyer

Business Development Manager

Account Manager

Operations Manager

Finance 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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