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Secured Credit Agreement Template for Australia

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Key Requirements PROMPT example:

Secured Credit Agreement

"I need a Secured Credit Agreement for a manufacturing company borrowing AUD 5 million against its equipment and inventory, with the facility to be made available by March 2025 and including specific provisions for periodic valuation of the secured assets."

Document background
The Secured Credit Agreement is a fundamental document used in Australian financing transactions where a lender provides credit facilities secured against the borrower's assets. This agreement is essential for transactions requiring robust security arrangements and compliance with Australian secured lending legislation, particularly the Personal Property Securities Act 2009 (Cth) and National Consumer Credit Protection Act 2009 (Cth). It is commonly used for business loans, asset financing, and general corporate lending where security is required. The document incorporates comprehensive provisions for the creation and perfection of security interests, facility terms, borrower obligations, and enforcement mechanisms, while ensuring compliance with Australian regulatory requirements and banking practices.
Suggested Sections

1. Parties: Identifies and defines the Lender, Borrower, and any Security Provider

2. Background: Sets out the context of the loan and security arrangement

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles

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

5. Interest and Fees: Specifies interest rates, calculation methods, and applicable fees

6. Repayment Terms: Details of repayment schedule, methods, and prepayment provisions

7. Security: Description of security interests, charging provisions, and PPSA requirements

8. Representations and Warranties: Statements of fact and assurances from the Borrower

9. Undertakings: Positive and negative obligations of the Borrower during the loan term

10. Events of Default: Circumstances constituting default and consequences

11. Enforcement: Rights and remedies of the Lender upon default

12. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

Optional Sections

1. Guarantee: Terms of guarantee when third-party guarantors are involved

2. Special Asset Provisions: Specific provisions for particular types of secured assets (e.g., vehicles, equipment)

3. Multiple Borrowers: Additional provisions for joint and several liability when multiple borrowers exist

4. Insurance Requirements: Detailed insurance obligations when specific asset insurance is required

5. Cross-Collateralization: Provisions for when security covers multiple facilities

6. Priority Arrangements: Terms dealing with priority of security interests when multiple secured parties exist

7. Review Events: Circumstances triggering review of facility terms, distinct from events of default

Suggested Schedules

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

2. Security Property Schedule: Detailed description of all secured property and registration requirements

3. Repayment Schedule: Detailed breakdown of repayment dates and amounts

4. Conditions Precedent: List of conditions to be satisfied before facility availability

5. Form of Drawdown Notice: Template for requesting draws under the facility

6. Permitted Security Interests: List of security interests permitted to exist over secured property

7. Insurance Requirements: Detailed specifications for required insurance coverage

8. Financial Covenants: Detailed financial ratios and calculations required to be maintained

Authors

Alex Denne

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

Relevant legal definitions











































































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Relevant Industries

Financial Services

Banking

Commercial Lending

Asset Finance

Equipment Finance

Property Development

Manufacturing

Agriculture

Mining

Retail

Construction

Infrastructure

Transportation

Healthcare

Relevant Teams

Legal

Finance

Treasury

Credit

Risk Management

Compliance

Corporate Banking

Commercial Lending

Security Operations

Portfolio Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Credit Manager

Loan Officer

Commercial Banker

Risk Manager

Legal Counsel

Corporate Lawyer

Finance Manager

Relationship Manager

Credit Analyst

Compliance Officer

Security Trustee Officer

Portfolio Manager

Corporate Secretary

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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