Document background
The Facilities Agreement is a crucial document in Malaysian corporate financing that establishes the legal framework for lending arrangements between financial institutions and borrowers. It is used when a lender agrees to provide financial facilities such as term loans, revolving credits, or Islamic financing to a borrower. The agreement must comply with Malaysian banking regulations, including the Financial Services Act 2013 and, where applicable, the Islamic Financial Services Act 2013. It contains detailed provisions on facility terms, security arrangements, representations and warranties, covenants, and events of default. The document is essential for both conventional and Islamic banking transactions in Malaysia's dual banking system and must incorporate local legal requirements, including security registration, stamp duty provisions, and Central Bank guidelines.
