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Line Of Credit Promissory Note
"I need a Line of Credit Promissory Note for my manufacturing business to secure a NZD 500,000 credit facility from ABC Bank Limited, with quarterly drawdowns permitted and company equipment as security, compliant with New Zealand law."
1. Parties: Identification of the lender and borrower with full legal names and addresses
2. Background: Context of the credit arrangement and purpose of the promissory note
3. Definitions: Key terms used throughout the document including 'Credit Limit', 'Interest Rate', 'Draw Down', etc.
4. Credit Facility Details: Specifics of the credit line including the maximum amount, availability period, and purpose
5. Interest and Fees: Interest rate calculation method, applicable fees, and payment terms
6. Drawdown Provisions: Process and conditions for accessing the credit facility
7. Repayment Terms: Minimum payment requirements, payment schedule, and prepayment provisions
8. Events of Default: Circumstances that constitute default and consequences
9. Representations and Warranties: Borrower's confirmations regarding their capacity and financial situation
10. Governing Law: Specification of New Zealand law as governing law and jurisdiction
1. Security: Include when the line of credit is secured by collateral or guarantees
2. Insurance Requirements: Include when specific insurance coverage is required for the borrower
3. Financial Covenants: Include for business borrowers when ongoing financial requirements need to be maintained
4. Guarantor Provisions: Include when a guarantor is providing additional security for the credit facility
5. Cross-Default Provisions: Include when the borrower has other credit facilities with the lender
6. Review and Renewal: Include when the facility is subject to periodic review or renewal terms
1. Schedule 1 - Credit Facility Terms: Detailed terms including credit limit, interest rates, fees, and payment dates
2. Schedule 2 - Draw Down Request Form: Standard form for requesting draws under the credit facility
3. Schedule 3 - Security Details: Description of any security or collateral (if applicable)
4. Schedule 4 - Compliance Certificate: Form for periodic confirmation of compliance with facility terms
5. Appendix A - Calculation of Interest and Fees: Detailed explanation of how interest and fees are calculated
6. Appendix B - Required Insurance Coverage: Specific insurance requirements and minimum coverage amounts (if applicable)
Authors
Banking and Financial Services
Commercial Real Estate
Retail
Manufacturing
Professional Services
Agriculture
Construction
Healthcare
Technology
Small Business
Legal
Finance
Credit
Risk Management
Treasury
Compliance
Commercial Banking
Corporate Finance
Business Development
Operations
Chief Financial Officer
Finance Manager
Credit Manager
Legal Counsel
Commercial Lawyer
Banking Officer
Credit Analyst
Risk Manager
Treasury Manager
Compliance Officer
Business Development Manager
Account Manager
Financial Controller
Managing Director
Company Secretary
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