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The Line of Credit Agreement is a fundamental financing document used when a borrower requires flexible access to funds up to a predetermined limit, rather than a fixed loan amount. This agreement, governed by Dutch law and compliant with EU regulations, is particularly useful for businesses managing working capital needs or requiring ongoing access to funds. It details crucial elements such as the facility limit, drawdown mechanisms, interest calculations, repayment terms, and security requirements. The document ensures compliance with Dutch financial regulations, including the Financial Supervision Act (Wft) and, where relevant, consumer protection laws. It's commonly used in both corporate and commercial contexts, providing a framework for ongoing borrowing and repayment within specified limits and terms.

1. Parties: Identification of the lender(s) and borrower(s) with full legal names and addresses

2. Background: Brief context of the credit facility and its purpose

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. The Facility: Core terms of the credit line including amount, purpose, and availability period

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

6. Utilization: Process and requirements for drawing down the credit line

7. Interest: Interest rate(s), calculation methods, and payment terms

8. Fees: All applicable fees including commitment fees, arrangement fees, and other charges

9. Repayment and Prepayment: Terms for regular repayment and voluntary/mandatory prepayment

10. Representations and Warranties: Statements of fact and assurances given by the borrower

11. Undertakings: Positive and negative obligations of the borrower during the facility period

12. Events of Default: Circumstances that constitute default and their consequences

13. Changes to Parties: Rules regarding assignment and transfer of rights and obligations

14. Notices: Communication requirements and contact details

15. Calculations and Administration: Rules for calculating interest, payments, and maintaining records

16. General Provisions: Boilerplate clauses including severability, amendments, and governing law