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Revolving Line Of Credit Promissory Note Template for Pakistan

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Key Requirements PROMPT example:

Revolving Line Of Credit Promissory Note

"I need a Revolving Line of Credit Promissory Note for a manufacturing company in Karachi, Pakistan, with a credit limit of PKR 50 million, requiring Shariah compliance and including provisions for equipment-based security, to be effective from March 2025."

Document background
The Revolving Line Of Credit Promissory Note is a crucial financial instrument in Pakistan's lending landscape, designed to provide flexible financing solutions to businesses and individuals. This document is typically used when a borrower requires ongoing access to credit with the ability to draw down, repay, and reborrow funds within a predetermined limit. It serves as both a proof of debt and a contractual agreement, incorporating essential elements required under Pakistani law, including the Negotiable Instruments Act, 1881, and the Banking Companies Ordinance, 1962. The document can be structured to comply with either conventional or Islamic banking principles, making it versatile for Pakistan's dual banking system. It includes comprehensive details about credit limits, interest/profit rates, repayment terms, security arrangements, and default provisions, providing legal protection for both lender and borrower.
Suggested Sections

1. Parties: Identification of the Maker/Borrower and the Payee/Lender with complete legal names and addresses

2. Promise to Pay: Unconditional promise to pay the principal amount, including the maximum credit limit and statement of revolving nature

3. Interest Rate: Specification of interest rate, calculation method, and payment frequency

4. Payment Terms: Details of minimum payments, payment schedule, and method of payment

5. Draw Period: Terms and conditions for drawing funds during the availability period

6. Default Provisions: Events of default and consequences, including acceleration clause

7. Security: Reference to any collateral or security provided for the credit line

8. Governing Law: Specification of Pakistani law as governing law and jurisdiction

Optional Sections

1. Shariah Compliance Declaration: Required when the credit facility needs to be Shariah-compliant, including relevant Islamic financing principles

2. Guarantor Provisions: Include when a guarantor is securing the credit facility

3. Late Payment Charges: Optional section detailing additional charges for delayed payments, if applicable

4. Prepayment Terms: Include if early repayment is allowed and any associated conditions

5. Assignment Rights: Include if the note can be assigned or transferred to other parties

6. Insurance Requirements: Include if specific insurance coverage is required for the credit facility

Suggested Schedules

1. Schedule A - Draw Down Procedures: Detailed procedures for requesting and receiving funds under the credit line

2. Schedule B - Repayment Schedule: Template or actual schedule of minimum payments and due dates

3. Schedule C - Security Details: Detailed description of any collateral or security provided

4. Appendix 1 - Fee Schedule: List of all applicable fees and charges

5. Appendix 2 - Compliance Certificate: Template for periodic compliance certification if required

6. Appendix 3 - Draw Request Form: Standard form for requesting draws under the credit facility

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



































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Relevant Industries

Banking

Financial Services

Islamic Banking

Corporate Finance

Small and Medium Enterprises

Real Estate

Manufacturing

Trading

Retail

Construction

Agriculture

Technology

Healthcare

Professional Services

Relevant Teams

Legal

Finance

Treasury

Credit

Compliance

Risk Management

Corporate Banking

Islamic Banking

Commercial Banking

Business Development

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Credit Manager

Banking Relationship Manager

Legal Counsel

Compliance Officer

Risk Manager

Corporate Banking Officer

SME Banking Officer

Islamic Banking Officer

Financial Controller

Account Manager

Credit Analyst

Legal Manager

Company Secretary

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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