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Intercompany Credit Agreement
"Need an Intercompany Credit Agreement for a CAD 5 million loan from our Canadian parent company to our technology subsidiary in Ontario, with quarterly interest payments and full repayment by March 2025; must include transfer pricing compliance provisions."
1. Parties: Identification of the lender and borrower entities, including registration details and addresses
2. Background: Context of the intercompany lending arrangement and relationship between the parties
3. Definitions: Definitions of key terms used throughout the agreement
4. The Facility: Details of the credit facility, including amount, purpose, and availability period
5. Interest: Interest rate, calculation method, and payment terms in compliance with Canadian Interest Act
6. Repayment: Terms and conditions for repayment of the principal amount
7. Prepayment: Conditions and procedures for early repayment of the loan
8. Representations and Warranties: Standard representations and warranties from both parties
9. Covenants: Positive and negative covenants applicable to the borrower
10. Events of Default: Circumstances constituting default and consequences thereof
11. Taxes: Treatment of taxes, including withholding tax requirements under Canadian law
12. Changes to Parties: Provisions for assignment and transfer of rights
13. Notices: Communication procedures between parties
14. Governing Law and Jurisdiction: Specification of Canadian law as governing law and jurisdiction for disputes
15. Execution: Signature blocks and execution formalities
1. Security: Include when the loan is secured by assets or guarantees
2. Currency Provisions: Required when loan and repayments are in different currencies
3. Subordination: Include when the loan needs to be subordinated to other debt
4. Tax Gross-Up: Include when borrower agrees to gross up payments for withholding taxes
5. Guarantee: Include when there are corporate guarantors for the loan
6. Transfer Pricing Compliance: Include detailed transfer pricing compliance terms when parties are in different jurisdictions
7. Set-off Rights: Include when parties want to establish mutual set-off rights
8. Regulatory Compliance: Include specific regulatory compliance provisions if either party is regulated
9. Anti-Money Laundering: Include detailed AML provisions if required by company policy or regulation
1. Schedule 1 - Loan Terms: Detailed terms of the loan including amount, interest rate, and payment dates
2. Schedule 2 - Drawdown Request Form: Standard form for requesting drawdowns under the facility
3. Schedule 3 - Repayment Schedule: Amortization or repayment schedule if applicable
4. Schedule 4 - Calculation of Interest: Detailed methodology for interest calculation
5. Schedule 5 - Conditions Precedent: List of required documents and conditions to be satisfied before drawdown
6. Appendix A - Compliance Certificate: Form of periodic compliance certificate
7. Appendix B - Notice Forms: Standard forms for various notices under the agreement
8. Appendix C - Transfer Pricing Documentation: Required transfer pricing documentation and methodology
Authors
Financial Services
Manufacturing
Technology
Retail
Energy
Mining
Healthcare
Real Estate
Transportation
Telecommunications
Professional Services
Consumer Goods
Agriculture
Construction
Media and Entertainment
Legal
Finance
Treasury
Tax
Compliance
Risk Management
Corporate Secretariat
Financial Reporting
Corporate Finance
Board Secretariat
Internal Audit
Chief Financial Officer
Treasury Manager
Financial Controller
Tax Director
Legal Counsel
Corporate Secretary
Finance Director
Group Accountant
Treasury Analyst
Tax Manager
Compliance Officer
Risk Manager
Corporate Finance Manager
Board Director
Managing Director
Financial Reporting Manager
Transfer Pricing Specialist
Group Financial Controller
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