¶¶Òõ¶ÌÊÓƵ

The Revolving Line of Credit Agreement is a crucial financing document used when a business requires flexible access to funding for working capital or other ongoing operational needs. This agreement, structured under Indian law and banking regulations, enables borrowers to draw down funds multiple times up to an approved limit, repay, and reborrow during the facility period. It is particularly valuable for businesses with cyclical cash flows or varying capital requirements. The document includes detailed provisions on facility limits, drawdown mechanics, interest calculations, security arrangements (if applicable), and compliance requirements. It ensures compliance with Indian banking regulations, including Reserve Bank of India guidelines, while providing a clear framework for both lender and borrower in managing the ongoing credit relationship.

1. Parties: Identifies the lender(s) and borrower(s) with their complete legal names and addresses

2. Background: Explains the context and purpose of the credit facility and the parties' intention to enter into the agreement

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules of interpretation

4. The Facility: Details the nature, amount, and purpose of the revolving credit facility

5. Conditions Precedent: Lists conditions that must be satisfied before the facility becomes available

6. Drawdown Mechanics: Specifies procedures, notice requirements, and conditions for drawing down the facility

7. Interest and Fees: Details interest rates, calculation methods, fees, and payment terms

8. Repayment and Prepayment: Specifies repayment terms, prepayment conditions, and related provisions

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

10. Covenants: Sets out positive and negative obligations of the borrower during the facility period

11. Events of Default: Defines circumstances constituting default and consequences thereof

12. Changes to Parties: Procedures for assignments, transfers, and changes in lending structure

13. Administration: Covers operational aspects like payments, calculations, and notices

14. Governing Law and Jurisdiction: Specifies applicable law and courts having jurisdiction

15. Counterparts and Execution: Explains how the agreement may be executed and number of counterparts