This credit agreement template has 21 pages and is a MS Word file type listed under our finance & accounting documents.
Sample of our credit agreement template:
CREDIT AGREEMENT This Credit Agreement (the "Agreement") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the "Borrower"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [BANK NAME] (the "Lender"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS the Borrower wishes to borrow certain monies from the Lender, and the Lender is prepared to lend monies to the Borrower on the terms and conditions herein contained. NOW, THEREFORE, THE PARTIES HERETO HAVE AGREED AS FOLLOWS: 1. INTERPRETATION 1.1 Definitions The following words and expressions, wherever used in this Agreement or in its Schedules, or in any deed of agreement supplement or ancillary hereto, unless there be something in the subject or the context inconsistent therewith, shall have the following meanings: 1.1.1 "Advance" means any advance by the Lender under the Term Commitment or under the Operating Commitment; 1.1.2 "Affiliate" means any Person, which is directly, or indirectly controlling, is controlled by, or is under direct or indirect common control with the Borrower. A Person shall be deemed to control a corporation or a limited partnership if such person possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of such corporation, limited partnership or general partner of such limited partnership, as the case may be, whether through the ownership of voting securities, by contract, or otherwise; 1.1.3 "Agreement", "this Agreement", "these presents", "herein", "hereby", "hereunder", and similar expressions refer to the present Agreement and any accompanying Schedules and include any and every deed of instrument which is supplementary or ancillary hereto or in implementation hereof, the whole as same may be amended from time to time; 1.1.4 "Available Operating Commitment" means, as at any time, as determined by the Lender, the difference between: 1.1.4.1 an amount being the lesser of: 1.1.4.1.1 the Operating Commitment; or 1.1.4.1.2 an amount equal to: 1.1.4.1.2.1 [%] of the book value of such of the Borrower's trade accounts receivable and book debts which are acceptable to the Lender acting reasonably and are outstanding for less than [NUMBER] days, other than accounts receivable and book debts which are being disputed by the debtors thereof or which are owed by any Affiliate of the Borrower; plus 1.1.4.1.2.2 the lesser of [AMOUNT] or [%] of the book value of the Borrower's Inventory, other than Inventory consisting of work-in-process and Inventory located outside of [COUNTRY]; and 1.1.4.2 the Operating Loan. 1.1.5 "Bank Act Documents" is the collective reference to: the Notice of Intention to Give Security; the Application for Credit and Promise to Give Security; the Agreement as to Powers of the Lender in relation to all Advances and Securities Held Therefore and the Assignment of Security on all Property of Specified Kinds, all in the form required by the Lender; 1.1.6 "[COMPANY NAME]" means [COMPANY NAME]; 1.1.7 "Company Lease" means the lease between the Borrower and [COMPANY NAME] wherein certain equipment which was purchased from or on behalf of the Borrower for [AMOUNT] has been leased to the Borrower by [AMOUNT] for a term of [NUMBER] years; 1.1.8 "Bond" means the [%] collateral mortgage bond issued pursuant to the Trust Deed and pledged to the Lender pursuant to the Pledge Agreement; 1.1.9 "Borrower" refers to [NAME] 1.1.10 "Borrower's Counsel" refers to [EMPLOYEE], [EMPLOYEE]; "Business Day" means any day excluding Saturday, Sunday and any other day which, in [COUNTRY], is a legal holiday or a day on which banking institutions are authorized by [COUNTRY] law or by local proclamation to close; "Equipment Lease" means the lease between the Borrower and [COMPANY] wherein certain equipment which was purchased from or on behalf of the Borrower for [AMOUNT] has been leased to the Borrower by CID for a term of [NUMBER] years; "Commercial Pledge Agreement" refers to the commercial pledge agreement referred to in subsection 7.1.8 and as the same may be amended or supplemented from time to time; "Default" means any of the events specified in Section 13.1, the occurrence or failure to cure of which constitutes, or with the passage of time or giving of notice or both, would constitute an Event of Default; "Event of Default" has the meaning ascribed to it in Section 13.1; "Guarantee" means each of the agreements referred to subsection 7.1.9; "Guarantor" refers to [GUARANTOR] "Indebtedness" includes, for any Person: obligations for borrowed money; obligations representing the deferred purchase price of property or services; obligations, whether or not assumed, secured by Liens in or payable out of the proceeds or production from, property owned by such Person; lease obligations which would be shown as a liability on a balance sheet of such Person; and obligations of another Person of the types set forth above which such Person has guaranteed (except by reason of endorsement for collection in the ordinary course of business) or in respect of which such Person is liable, contingently or otherwise including, without limitation, liable by way of agreement to purchase property or services, to provide funds for payment, to supply funds to or otherwise invest in such other Person, or otherwise to assure a creditor of such other Person against loss; "Insurance" is the collective reference to any and all present and future policies of insurance providing the Borrower coverage for its properties, assets and business; "Inventory" means the goods, wares, materials and supplies, merchandise, products, products in process, stock-in-trade and on hand described or referred to in the Assignment of Security in all Property of Specified Kinds forming part of the Bank Act Documents; "[YOUR COUNTRY] Law" means all applicable provisions of statutes, ordinances, decrees, orders in council, rules, regulations and orders of governmental bodies, treaties and all applicable orders and decrees of courts; "Lender" means [COMPANY NAME] and includes any successors or assigns thereof; "Lien" means any interest in property or the income or profits therefrom securing an obligation owed to, or claimed by, a Person other than the owner (which for the purposes hereof shall include a possessor under a title retention agreement and a lessee under a lease herein below described) of such property, whether such interest is based on common law, civil [COMPANY NAME], statute or contract, and including, but not limited to, any secured interest, hypothec, mortgage, pledge, lien, claim, charge, cession, transfer, assignment, encumbrance, title retention agreement, lessor's interest under a lease which would be capitalized on a balance sheet of the owner of such property or analogous instrument in, of, or on any property or the income or profits therefrom of a Person, other than Permitted Encumbrances and Liens included in the ordinary course of business and for the purpose of carrying on same not in connection with the borrowing of money or the obtaining of credit and which do not in the aggregate materially impair the use, the income or profits therefrom, of the property covered thereby in the operation of such Person's business; "Loan" means, as at any time, the aggregate of the outstanding amount of any monies advanced by the Lender to, or to the order of, the Borrower pursuant to this Agreement plus any other amounts of principal, interest and accessories due and payable to the Lender hereunder by the Borrower; "Obligations" has the meaning ascribed to it in Section 7.1; "Operating Commitment" has the meaning ascribed to it in Section 2.1;
