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Term Facility Agreement
"I need a Term Facility Agreement under Malaysian law for a RM50 million corporate loan to a manufacturing company, with quarterly repayments over 5 years starting March 2025, including standard security package and financial covenants."
1. Parties: Identifies the lender(s) and borrower(s) with their full legal names and registration details
2. Background: Recitals explaining the context and purpose of the facility
3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and interpretation rules
4. The Facility: Details of the facility amount, purpose, and availability period
5. Conditions Precedent: Prerequisites that must be satisfied before drawdown
6. Drawdown: Procedures and requirements for utilization of the facility
7. Interest: Interest rate, calculation method, and payment provisions
8. Repayment: Terms and schedule for repayment of the facility
9. Prepayment: Voluntary and mandatory prepayment provisions
10. Representations and Warranties: Statements of fact and assurances given by the borrower
11. Covenants: Positive and negative undertakings of the borrower
12. Events of Default: Circumstances constituting default and consequences
13. Changes to Parties: Assignment and transfer provisions
14. Administration: Administrative provisions including notices and calculations
15. Governing Law and Jurisdiction: Choice of Malaysian law and jurisdiction provisions
1. Security: Required when the facility is secured, detailing the security package and enforcement rights
2. Guarantee: Include when there are guarantors providing support for the borrower's obligations
3. Increased Costs: Include for floating rate facilities or when regulatory changes might affect the lender's costs
4. Tax Gross Up and Indemnities: Required when tax implications need specific attention, particularly with cross-border elements
5. Multiple Lenders: Include for syndicated facilities, covering majority voting and agent provisions
6. Islamic Finance Provisions: Required when the facility needs to be Shariah-compliant
7. Set-off Rights: Include when specific set-off rights are required beyond standard provisions
8. Currency Provisions: Required for multi-currency facilities or cross-border transactions
1. Form of Drawdown Request: Standard form for the borrower to request utilization of the facility
2. Conditions Precedent Documents: Detailed list of required documents and conditions
3. Repayment Schedule: Detailed amortization schedule if term loan with scheduled repayments
4. Form of Transfer Certificate: Standard form for transferring commitments between lenders
5. Security Details: Detailed description of security assets and perfection requirements
6. Form of Compliance Certificate: Template for periodic compliance certification by borrower
7. Calculation of Interest and Fees: Detailed methodology for calculating interest and other amounts
8. Contact Details: Administrative and notice details for all parties
Authors
Banking
Financial Services
Real Estate
Manufacturing
Infrastructure
Energy
Telecommunications
Healthcare
Retail
Construction
Technology
Agriculture
Mining
Transportation
Education
Legal
Finance
Treasury
Compliance
Risk Management
Corporate Finance
Banking Operations
Credit
Company Secretarial
Deal Advisory
Chief Financial Officer
Finance Director
Treasury Manager
Legal Counsel
Banking Lawyer
Corporate Lawyer
Relationship Manager
Credit Risk Manager
Compliance Officer
Company Secretary
Finance Manager
Investment Manager
Corporate Finance Manager
Banking Operations Manager
Risk Officer
Transaction Manager
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