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Secured Line Of Credit Agreement Template for India

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Key Requirements PROMPT example:

Secured Line Of Credit Agreement

"I need a Secured Line of Credit Agreement for a manufacturing company in Mumbai, with a credit facility of INR 50 crores secured against plant machinery and property, including specific provisions for export financing and multiple drawdown options."

Document background
The Secured Line Of Credit Agreement is a fundamental financing document used when a lender provides revolving credit facilities to borrowers in India, secured against specific assets or property. This agreement is particularly crucial for businesses seeking flexible access to working capital or project financing while providing security comfort to lenders. The document must comply with Indian banking regulations, including RBI guidelines, SARFAESI Act provisions, and security registration requirements under various Indian laws. It typically includes detailed provisions on facility limits, drawdown mechanics, security creation and perfection, financial covenants, and enforcement rights. The agreement is commonly used in corporate banking transactions, project financing, and working capital arrangements, requiring careful consideration of both banking and security laws in India.
Suggested Sections

1. Parties: Identification of the lender and borrower with complete details including registration numbers, addresses and authorized representatives

2. Background: Context of the agreement, relationship between parties, and purpose of the credit facility

3. Definitions: Comprehensive definitions of terms used throughout the agreement

4. Facility: Details of the credit facility including amount, purpose, availability period, and drawdown mechanics

5. Interest and Fees: Interest rate, calculation method, payment periods, and all applicable fees

6. Security: Description of security interests, creation of charge, and ranking of security

7. Conditions Precedent: Conditions to be satisfied before the facility becomes available

8. Representations and Warranties: Statements of fact and assurances given by the borrower

9. Covenants: Positive and negative obligations of the borrower during the facility period

10. Events of Default: Circumstances constituting default and consequences thereof

11. Enforcement: Rights and remedies of the lender upon default

12. Payments: Payment mechanics, currency, timing, and allocation of payments

13. Assignment and Transfer: Rights and restrictions regarding transfer of rights and obligations

14. Notices: Communication methods and contact details for formal notices

15. Governing Law and Jurisdiction: Choice of law and dispute resolution mechanisms

Optional Sections

1. Guarantee: Required when there is a third-party guarantor for the facility

2. Insurance: Detailed insurance requirements when specific insurance coverage is required for the security

3. Security Trustee: Needed in syndicated facilities where security is held by a trustee

4. Intercreditor Provisions: Required when there are multiple lenders or ranking of security interests

5. Tax Provisions: Detailed tax clauses when cross-border elements or specific tax considerations exist

6. Currency Protection: Required for facilities involving foreign currency exposure

7. Additional Review Rights: Enhanced monitoring rights for high-risk facilities

8. Force Majeure: Specific provisions for handling unforeseen circumstances affecting the facility

Suggested Schedules

1. Facility Terms: Detailed commercial terms including limits, sub-limits, pricing

2. Security Details: Comprehensive description of all security assets and perfection requirements

3. Conditions Precedent Documents: List of all required documents and conditions

4. Form of Drawdown Notice: Standard format for requesting disbursements

5. Repayment Schedule: If applicable, detailed repayment terms and dates

6. Financial Covenants: Detailed financial ratios and calculations

7. Security Documents: Forms of security documents to be executed

8. Know Your Customer Requirements: List of required KYC documents and compliance requirements

9. Form of Compliance Certificate: Template for periodic compliance reporting

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





































































Clauses









































Relevant Industries

Banking and Financial Services

Manufacturing

Real Estate and Construction

Infrastructure

Retail

Technology and Software

Healthcare

Logistics and Transportation

Energy and Utilities

Agriculture and Food Processing

Telecommunications

Hospitality

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Banking

Security and Collateral Management

Operations

Risk Management

Corporate Secretarial

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Banker

Credit Risk Manager

Legal Counsel

Company Secretary

Relationship Manager

Credit Analyst

Security Trustee Officer

Compliance Officer

Managing Director

Finance Manager

Risk Officer

Corporate Finance Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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