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Line Of Credit Contract
1. Parties: Identification of the lender and borrower with full legal names and registration details
2. Background: Context of the agreement and purpose of the credit facility
3. Definitions: Definitions of key terms used throughout the agreement
4. The Credit Facility: Details of the credit limit, purpose, and general terms of the facility
5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available
6. Interest and Fees: Specification of interest rates, calculation methods, and applicable fees
7. Drawdown Mechanics: Procedures and requirements for drawing down the credit facility
8. Repayment Terms: Terms for repayment including minimum payments and payment schedules
9. Representations and Warranties: Statements of fact and assurances given by the borrower
10. Covenants: Ongoing obligations of the borrower during the term of the facility
11. Events of Default: Circumstances that constitute default and their consequences
12. Security: Details of any security or collateral required for the facility
13. Termination: Circumstances and procedures for terminating the facility
14. General Provisions: Standard legal provisions including notices, amendments, and governing law
1. Guarantees: Required when the credit facility is supported by third-party guarantees
2. Insurance Requirements: Included when specific insurance coverage is required from the borrower
3. Special Drawing Rights: For facilities with specific drawing conditions or restrictions
4. Currency Provisions: Required for multi-currency facilities
5. Financial Covenants: Included for corporate borrowers where financial metrics need to be maintained
6. Consumer Protection Rights: Required when the borrower is a consumer rather than a business
7. Data Protection: Detailed GDPR compliance section when extensive personal data processing is involved
1. Schedule 1 - Facility Details: Specific details of the credit facility including limits, interest rates, and fees
2. Schedule 2 - Conditions Precedent Documents: List of required documents and conditions to be satisfied
3. Schedule 3 - Drawing Notice Form: Template form for requesting drawdowns
4. Schedule 4 - Calculation of Interest and Fees: Detailed methodology for calculating interest and fees
5. Schedule 5 - Reporting Requirements: Forms and timing for required financial reporting
6. Appendix A - KYC Requirements: List of required know-your-customer documentation
7. Appendix B - Security Documents: Forms and details of required security documentation
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