Document background
The Bank Facilities Letter is a crucial document in Irish banking practice, used to formalize the terms and conditions of credit facilities offered by banks to their customers. It serves as the primary document establishing the lending relationship and outlining all key commercial and legal terms. This document is required whenever a bank extends credit facilities, whether for general corporate purposes, specific projects, or asset financing. The letter must comply with Irish banking regulations, including Central Bank requirements and consumer protection legislation. A Bank Facilities Letter typically includes details about facility limits, interest rates, security requirements, conditions precedent, representations, warranties, and events of default. It's particularly important in the Irish context as it must align with both domestic banking laws and EU regulations that have been incorporated into Irish law.
