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The Framework Loan Agreement is designed for situations where a borrower requires flexible access to funding over an extended period, rather than a single loan disbursement. This document type is particularly valuable for businesses with ongoing capital needs or project-based funding requirements. The agreement, structured under Canadian law, establishes the master terms and conditions that will govern all subsequent borrowings, including maximum facility amounts, drawdown procedures, interest calculations, and security arrangements. It must comply with federal legislation such as the Interest Act and Bank Act, as well as relevant provincial laws regarding security and contract formation. The Framework Loan Agreement typically includes provisions for multiple drawdowns, varying interest rates, and comprehensive security arrangements, making it suitable for both simple bilateral arrangements and more complex syndicated facilities.

1. Parties: Identification of the lender and borrower, including their legal status and registered addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the lending framework

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

4. The Facility: Core terms of the lending framework including facility type, purpose, and maximum amount

5. Drawdown Mechanics: Procedures and conditions for requesting and making drawdowns under the facility

6. Interest and Fees: Interest calculation methods, applicable rates, and all fee structures

7. Repayment and Prepayment: Terms for scheduled repayments and voluntary prepayment provisions

8. Conditions Precedent: Conditions that must be satisfied before initial and subsequent drawdowns

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

10. Covenants: Ongoing obligations of the borrower including financial covenants and reporting requirements

11. Events of Default: Circumstances constituting default and their consequences

12. Security: Overview of security arrangements and their enforcement

13. Changes to Parties: Rules for assignment, transfer, and succession

14. Administration: Operational aspects including payments, calculations, and notices

15. Governing Law and Jurisdiction: Choice of law and jurisdiction for dispute resolution

16. Boilerplate Provisions: Standard contract clauses including severability, entire agreement, and amendments