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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."
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
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
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
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
Legal
Finance
Treasury
Credit Risk
Compliance
Corporate Banking
Security and Collateral Management
Operations
Risk Management
Corporate Secretarial
Business Development
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
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