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Finance Agreement
"I need a Finance Agreement for a €5 million secured corporate loan to be provided by Allied Irish Banks to our manufacturing company, with quarterly repayments over 5 years starting March 2025, secured against our factory premises in Dublin."
1. Parties: Identification of the finance provider and the borrower/recipient of finance, including full legal names and addresses
2. Background: Context of the financing arrangement, purpose of the facility, and any relevant pre-conditions
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. The Facility: Details of the financial facility including amount, purpose, and any tranches
5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available
6. Drawdown: Procedures and requirements for drawing down the facility
7. Interest: Interest rate, calculation method, payment periods, and default interest provisions
8. Repayment: Repayment terms, schedule, and mechanisms
9. Fees and Costs: All applicable fees, charges, and cost allocation
10. Representations and Warranties: Statements of fact and assurances given by the borrower
11. Covenants: Positive and negative obligations of the borrower during the term
12. Events of Default: Circumstances constituting default and consequences
13. Regulatory Compliance: Compliance with Irish financial regulations and anti-money laundering requirements
14. Data Protection: GDPR compliance and data handling provisions
15. Governing Law and Jurisdiction: Confirmation of Irish law governance and jurisdiction of Irish courts
1. Security: Required when the facility is secured against assets or requires guarantees
2. Insurance: Required when specific insurance coverage must be maintained
3. Special Drawing Rights: Used for facilities with multiple drawing options or special drawing conditions
4. Tax Provisions: Detailed tax provisions when complex tax implications exist
5. Financial Covenants: Required for corporate borrowers or larger facilities with financial maintenance requirements
6. Assignment and Transfer: Required when transfer rights need to be specified, particularly for syndicated facilities
7. Guarantee Provisions: Required when third-party guarantees are part of the arrangement
8. Change of Control: Required for corporate borrowers to address ownership change scenarios
1. Schedule 1 - Conditions Precedent Documents: List of required documents and conditions to be satisfied before drawdown
2. Schedule 2 - Drawdown Notice: Form of drawdown request to be used by the borrower
3. Schedule 3 - Repayment Schedule: Detailed amortization or repayment schedule
4. Schedule 4 - Fee Schedule: Detailed breakdown of all applicable fees and charges
5. Schedule 5 - Security Documents: List and copies of security documents if applicable
6. Schedule 6 - Form of Compliance Certificate: Template for periodic compliance certification
7. Appendix A - Calculation of Interest: Detailed methodology for interest calculations
8. Appendix B - Required Insurance: Detailed insurance requirements if applicable
Authors
Banking
Financial Services
Corporate Finance
Real Estate
Manufacturing
Retail
Technology
Healthcare
Agriculture
Construction
Energy
Transportation
Education
Professional Services
Legal
Finance
Treasury
Compliance
Risk Management
Credit
Corporate Banking
Commercial Banking
Business Development
Company Secretariat
Operations
Chief Financial Officer
Finance Director
Treasury Manager
Financial Controller
Legal Counsel
Compliance Officer
Risk Manager
Credit Manager
Corporate Banker
Relationship Manager
Legal Director
Company Secretary
Finance Manager
Credit Risk Officer
Loan Officer
Commercial Director
Business Development Manager
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