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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."
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
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
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
Financial Services
Banking
Commercial Lending
Asset Finance
Equipment Finance
Property Development
Manufacturing
Agriculture
Mining
Retail
Construction
Infrastructure
Transportation
Healthcare
Legal
Finance
Treasury
Credit
Risk Management
Compliance
Corporate Banking
Commercial Lending
Security Operations
Portfolio Management
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
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