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The Corporate Loan Agreement serves as the primary documentation for corporate lending transactions in Malaysia, establishing the legal relationship between financial institutions and corporate borrowers. It is used when a company requires substantial financing for various purposes such as working capital, expansion, acquisition, or capital expenditure. The agreement must comply with Malaysian banking regulations, particularly the Financial Services Act 2013 and Bank Negara Malaysia guidelines, while incorporating market-standard provisions for corporate lending. It typically includes detailed terms on facility amounts, interest calculations, drawdown mechanics, security arrangements, financial covenants, and events of default. The document is crucial for both conventional and Islamic banking facilities, though specific requirements differ for Shariah-compliant transactions.

1. Parties: Identifies the lender(s) and borrower(s) with their full legal names and registration details

2. Background: Recitals explaining the context of the loan and the parties' intention

3. Definitions and Interpretation: Defines key terms and establishes interpretation rules for the agreement

4. The Facility: Details of the loan amount, purpose, and type of facility

5. Conditions Precedent: Conditions that must be satisfied before the loan can be drawn

6. Drawdown: Procedures and requirements for drawing down the loan

7. Interest: Interest rate, calculation method, and payment terms

8. Repayment: Terms and schedule for repayment of the principal amount

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

10. Covenants: Positive and negative obligations of the borrower during the loan term

11. Events of Default: Circumstances that constitute default and their consequences

12. Payments: Payment mechanics, currency, and timing requirements

13. Changes to Parties: Rules regarding assignment and transfer of rights and obligations

14. Notices: Communication requirements and contact details

15. General Provisions: Standard boilerplate clauses including governing law and jurisdiction