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The Short Term Credit Agreement serves as a legally binding document used in Malaysia when a lender provides temporary financing to a borrower for a period typically less than one year. This document is essential for businesses seeking working capital, bridge financing, or other short-term funding needs in the Malaysian market. It must comply with both conventional and Islamic banking requirements under Malaysian law, including the Financial Services Act 2013 and related regulations. The agreement typically includes detailed terms on credit limits, interest/profit rates, repayment schedules, security requirements, and default provisions, while ensuring adherence to local regulatory requirements and market practices.

1. Parties: Identifies and defines the Lender and Borrower with complete legal names and addresses

2. Background: Establishes the context of the loan and the parties' intention to enter into a credit arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Facility Details: Specifies the credit amount, interest rate, and term of the loan

5. Conditions Precedent: Lists conditions that must be satisfied before the credit facility becomes available

6. Drawdown: Specifies the procedure and requirements for accessing the credit facility

7. Interest and Fees: Details the interest calculation method, payment dates, and any applicable fees

8. Repayment Terms: Outlines the repayment schedule and method of payment

9. Representations and Warranties: States the facts and assurances provided by the Borrower

10. Events of Default: Lists circumstances that constitute default and their consequences

11. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and jurisdiction for disputes

12. Notices: Sets out how formal communications between parties should be made

13. Execution: Signature blocks and execution formalities