Document background
The Line of Credit Promissory Note is essential for businesses and individuals seeking flexible financing options in Malaysia. This document is typically used when a borrower requires ongoing access to funds rather than a one-time loan disbursement. It combines the legal certainty of a promissory note with the flexibility of a revolving credit facility, making it particularly valuable for managing working capital, seasonal cash flow variations, or project-based funding needs. The document must comply with Malaysian banking regulations and financial services laws, including requirements for proper execution, stamping, and registration where applicable. It provides detailed terms for credit limits, interest calculations, draw-down procedures, and repayment obligations, while also addressing security arrangements and default scenarios.
