This facility agreement template has 11 pages and is a MS Word file type listed under our legal agreements documents.
Sample of our facility agreement template:
FACILITY AGREEMENT This Facility Agreement (the "Agreement") is effective [DATE], BETWEEN: [LENDER NAME] (the "Lender"), 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: [BORROWER NAME], (the "Borrower"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] Collectively, the Lender and Borrower shall be referred to as the "Parties." WHEREAS, the Borrower has requested the Lender for grant of Facility (as described below) to the Borrower on the terms and conditions mentioned in this Agreement and other Transaction Documents. WHEREAS, the Lender has at such request of the Borrower agreed to grant all or some or any of the aforesaid Facilities subject inter alia to the terms and conditions contained in this Agreement and also in the other Transaction Documents including Security Documents or any of them and on such other terms and conditions as may be deemed necessary and notified from time to time by the Lender to the Borrower. NOW, THEREFORE, the Parties agree as follows: DEFINITIONS "Agreement" means this Facility Agreement and any amendment/modifications made thereto from time to time by the Parties hereto and shall include the Schedule hereto. "Borrower" means the personas defined above and includes any Co-Borrower/Joint Borrower. "Borrower's Dues" means and includes the outstanding principal amount of the Facility, Interest on the Facility, all other interest, all fees, costs, charges, expenses, stamp duty (including registration and filing charges and taxes of any description whatsoever as may be levied from time to time by the Government or other authority) and all other sums whatsoever payable by the Borrower to the Lender in accordance with the terms and conditions of the Facility and Transaction Documents, as well as all other monies whatsoever stipulated in or payable by the Borrower under the Facility. "Due Date" means the date(s) on which any amounts in respect of the Borrower's Dues, including the principal amounts of the Facility, Interest and/or any other monies, falls due, as specified in the Facility Application and/or the Sanction Letter and the other Transaction Documents. "Interest" shall mean the rate of Interest chargeable on the Facility at the rate and calculated in a manner specifically mentioned in the Schedule attached hereto and shall include any change of Interest on account of change in the Lender's internal policy or any directives/guidelines by the change in the Base rate or due to any other reasons. "Parties" means the Lender and the Borrower who are party to this Agreement. "Prepayment" means premature repayment of the Facility as per the terms and conditions laid down by the Lender in that behalf and as in force at the time of Prepayment. "Schedule" means and includes the Schedule attached hereto and forming an integral part of the Agreement. "Security" means the security interest created by the Security Provider in favor of the Lender as desired by the Lender on the Secured Property under each of the Security Documents in accordance with this Agreement. "Security Documents" means any documents, deeds, or agreements in relation to the creation of Security or the Additional Security in favor of the Lender. "Security Provider" means the Borrower or any third party who, on the request of the Borrower, has agreed to provide Security in favor of the Lender and shall include any guarantor providing the guarantee to secure the obligations under this Agreement. "Transaction Documents" means this Agreement, any Security Documents, Facility Application, or Sanction Letter and includes all writings and other documents executed or entered into or to be executed or entered into by the Borrower, or, as the case may be, by any other person, in relation to, or pertaining to the Facility and each such Transaction Document as amended from time to time. BASIS OF AGREEMENT The Borrower's Application and subsequent correspondence with the Lender and Lender's Sanction Letter referred to under Schedule I (d) of this Agreement shall be deemed to constitute the basis of this Agreement and of the credit facilities as hereinafter stated. The Borrower hereby agrees that the said advance shall be governed by the terms and conditions contained herein as well as those embodied in the Sanction Letter, and other loan and/or Security Documents except insofar as the loan/Security Documents may expressly or by necessary implication be modified by these presents. DISBURSAL OF FACILITY The loan will be disbursed to the Borrower in one or more installment(s) as may be required by the Borrower. The disbursement may be direct to the supplier or by credit to the Savings Lender or Current Account of the Borrower, depending upon the purpose for which the loan is sanctioned. The Borrower shall give at least three (3) clear days' prior notice of withdrawal of any installment of the loan, which advice may be waived by the Lender at its option. In the case of joint borrowing by more than one person, the person specified under Schedule I (f) of this Agreement shall draw the amount in stages as stipulated. SECURITY Security: The Security Provider agrees to create Security in such form and manner as may be required by the Lender to secure the principal amount of the Facility, together with Interest, Additional Interest, costs, charges, expenses etc. due and payable by the Borrower to the Lender. Additional Security: In the event the Security furnished by the Security Provider is found to be insufficient/incorrect in value to the Indebtedness, the Borrower shall be directed to furnish Additional Security as may be required by the Lender. Notwithstanding the above, in the event the Additional Security furnished by the Security Provider is subsequently found to be of inferior value to that as declared by the Borrower in the Facility Application, the Facility may be recalled or repayment of the Facility may be accelerated by the Lender with immediate effect. The Lender shall have the absolute right to decide whether or not it will accept as security for the purpose of the Facility any goods, book-debts, movables and other assets offered from time to time to the Lender by the Borrower. The Lender shall be at liberty at its sole discretion at any time without previous notice and without assigning any reason whatsoever to cease to accept the Security from the Security Provider and/or to cease making advance there against. REPAYMENT OF LOAN The Borrower agrees to repay the loan as specified in Schedule II (a) of this Agreement. The Borrower further agrees to pay Interest for a full six (6) months, if the loan is closed before 6 months from the date of disbursement. DUE DATE OF INSTALLMENT The due date of installment shall correspond to the date of disbursement as per the periodicity (i.e. monthly/quarterly/half yearly/yearly, as the case may be). However, the Lender shall, at its sole discretion, have right to fix the due date of installment, if he so desires. LENDER'S RIGHT TO REFIX INSTALMENT AMOUNT The Borrower agrees that, on account of upward revision of Interest or for any other reason, without giving any reasons to the Borrower, the Lender will have absolute liberty and discretion to refix the amount of the installment, and, in that event, the Borrower shall be liable to repay the loan with revised Interest at such revised installment, or the Lender may, at its sole and absolute discretion, extend the period of repayment. In the event of any amendment/alteration to the amount of installment and/or the number of installments on account of the above reasons, then the same shall be deemed to have been substituted here in this Agreement. INTEREST PAYABLE
