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The Revolving Line of Credit Agreement is a crucial financing instrument in South African business operations, providing flexible access to funding for various business needs. This document is typically used when a business requires ongoing access to credit with the ability to draw down and repay funds multiple times within an agreed limit. The agreement must comply with South African legislation, particularly the National Credit Act 34 of 2005, the Consumer Protection Act, and financial services regulations. It includes comprehensive terms covering facility limits, interest calculations, security requirements, drawdown mechanisms, and repayment terms. The document is especially relevant in scenarios where businesses need working capital flexibility, seasonal financing, or ongoing operational funding support. It incorporates specific South African legal requirements for credit agreements, including prescribed interest rate caps, fee structures, and mandatory disclosure requirements.

1. Parties: Identification of the Lender and Borrower with their full legal names, registration numbers, and addresses

2. Background: Context of the agreement, including the purpose of the credit facility and the parties' intention to enter into a revolving credit arrangement

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules for interpreting the agreement

4. The Facility: Details of the credit facility including the credit limit, purpose, and revolving nature of the facility

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

6. Drawdown and Repayment: Procedures for requesting advances, minimum drawdown amounts, and repayment terms

7. Interest and Fees: Interest rate calculations, applicable fees, and payment schedules in compliance with NCA regulations

8. Representations and Warranties: Statements of fact and assurances given by the Borrower

9. Borrower Covenants: Ongoing obligations of the Borrower during the term of the facility

10. Events of Default: Circumstances constituting default and consequences thereof

11. Security: Details of any security or collateral provided for the facility

12. General Provisions: Standard legal provisions including notices, amendments, and governing law

13. Signature: Execution clauses and signing provisions