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Loan And Guarantee Agreement
"I need a Loan and Guarantee Agreement for a ���500 million equipment financing facility between our manufacturing company as borrower, ABC Bank as lender, and our parent company as guarantor, with quarterly repayments over 5 years starting March 2025."
1. Parties: Identification of the Lender, Borrower, and Guarantor(s)
2. Background: Recitals explaining the context of the loan and the guarantee arrangement
3. Definitions and Interpretation: Definitions of key terms and interpretation rules used throughout the agreement
4. The Facility: Details of the loan amount, purpose, and availability
5. Interest: Interest rate, calculation method, payment periods, and default interest provisions
6. Repayment: Terms and schedule for repayment of the loan
7. Guarantee and Indemnity: Terms of the guarantee, including scope, limitations, and indemnification provisions
8. Representations and Warranties: Statements of fact and assurances from both Borrower and Guarantor
9. Covenants: Positive and negative obligations of the Borrower and Guarantor
10. Events of Default: Circumstances constituting default and consequences thereof
11. Security: Details of any security arrangements securing the loan
12. Payments: Payment mechanics, currency, and timing provisions
13. Changes to Parties: Rules regarding assignment and transfer of rights and obligations
14. Notices: Communication requirements and contact details
15. General Provisions: Miscellaneous legal provisions including severability, amendments, and governing law
1. Security Trustee Provisions: Required when there are multiple lenders and a security trustee arrangement
2. Intercreditor Provisions: Needed when there are multiple lenders with different priorities
3. Currency Conversion: Required for cross-border loans or when multiple currencies are involved
4. Tax Gross-Up and Indemnities: Detailed tax provisions needed for cross-border transactions or complex tax structures
5. Increased Costs: Provisions dealing with regulatory changes affecting the lender's costs
6. Set-off Rights: Specific set-off provisions when parties have multiple relationships
7. Anti-corruption Provisions: Required for compliance with international standards or when involving foreign parties
8. Force Majeure: Detailed force majeure provisions where specific risks need to be addressed
1. Conditions Precedent: List of documents and conditions required before drawdown
2. Repayment Schedule: Detailed schedule of repayment dates and amounts
3. Form of Drawdown Request: Template for the Borrower to request loan disbursements
4. Form of Compliance Certificate: Template for periodic compliance certification
5. Security Documents: Forms of security documents or list of security arrangements
6. Interest Calculation Examples: Examples showing how interest will be calculated
7. Form of Transfer Certificate: Template for transferring rights and obligations
8. Contact Details: Detailed contact information for all parties
Authors
Banking
Financial Services
Real Estate
Manufacturing
Oil and Gas
Agriculture
Telecommunications
Construction
Infrastructure
Mining
Retail
Healthcare
Technology
Transportation
Energy
Legal
Finance
Treasury
Risk Management
Compliance
Credit
Corporate Secretariat
Commercial
Banking Operations
Investment
Business Development
Corporate Finance
Chief Financial Officer
Finance Director
Legal Counsel
Corporate Lawyer
Banking Lawyer
Finance Manager
Treasury Manager
Risk Manager
Compliance Officer
Company Secretary
Credit Manager
Relationship Manager
Transaction Manager
Managing Director
Chief Executive Officer
Commercial Director
Banking Officer
Loan Officer
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