This line of credit agreement template has 9 pages and is a MS Word file type listed under our business plan kit documents.
Sample of our line of credit agreement template:
LINE OF CREDIT AGREEMENT This Line of Credit Agreement (the "Agreement") is effective [DATE], BETWEEN: [LENDER NAME], (the "Lender"), an individual with their 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] AND: [BORROWER NAME], (the "Borrower"), an individual with their 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 wishes to obtain from the Lender a line of credit facility of up to [SPECIFY AMOUNT] (the "Line of Credit"). WHEREAS, in connection with the Line of Credit, the Borrower entered a Promissory Note with the Lender (the "Note") to borrow up to [SPECIFY AMOUNT]. WHEREAS, in full reliance on the representations made by the Borrower in this Agreement and the Line of Credit Documents, the Lender is willing to extend such financing to the Borrower upon the terms, covenants and conditions contained in this Agreement and in the Line of Credit Documents. NOW, THEREFORE, the Parties agree as follows: DEFINITIONS "Agreement" means this Line of Credit Agreement and any amendment/modifications made thereto from time to time by the Parties hereto and shall include the Schedule hereto. "Note" shall mean reference to the Promissory Note issued by the Borrower to the Lender to evidence the Line of Credit and in the form of Exhibit A annexed hereto and made a part hereof. "Parties" means the Lender and the Borrower who are party to this Agreement. "Maturity Date" shall mean the third anniversary of the Effective Date, being the date that all sums evidenced by the Note shall be due and payable. "Exhibits" means and includes the Exhibits attached hereto and forming an integral part of the Agreement. "Material Adverse Event" means any circumstance or event that, individually or collectively with other circumstances or events, may reasonably be expected to have a material adverse effect on the financial condition or Business of the Borrower, as now conducted or as proposed to be conducted. "Line of Credit" shall mean the financing provided by the Lender to the Borrower under the terms of this Agreement in the maximum principal amount of [SPECIFY AMOUNT]. "Line of Credit Documents" shall refer to this Agreement and the Note. All of the Line of Credit Documents are incorporated herein by reference. "Default" shall mean the occurrence and continuance of any of the events listed in this Agreement. "Governmental Authority" shall mean the Government of the United States, any state, province or political subdivision thereof, any other foreign country, any multi-national organization or body and any entity exercising executive, judicial, legislative, police, taxing, regulatory or administrative authority or power of any nature. AMOUNT AND TERMS OF LINE OF CREDIT Line of Credit. On the Effective Date, the Lender shall provide the Borrower with a Line of Credit up to the maximum amount of [SPECIFY AMOUNT], representing the maximum aggregate amount of the advances of funds from the Line of Credit (each an "Advance") that may be outstanding and any time under the Line of Credit (the "Principal Indebtedness"), from which the Borrower may draw down, at any time and from time to time during the period from and including the date of this Line of Credit through the day immediately preceding the Maturity Date, a principal amount not to exceed at any one time outstanding, as to all such Advances in the aggregate, the Principal Indebtedness. The entire Principal Indebtedness of the Line of Credit shall be due and payable on the earlier to occur of (a) the occurrence and continuation of a Default hereunder, or (b) the Maturity Date (as the same may be extended as herein provided). Interest. Interest shall be payable on the outstanding Principal Indebtedness at the rate of [PERCENTAGE] per annum (the "Interest Rate"), payable semi-annually in arrears on [SPECIFY MONTHS] in each year. Interest at the Interest Rate on all outstanding Advances shall be payable with the then outstanding Principal Indebtedness on the Maturity Date. Borrowing Notice. All Advances, other than the Initial Advance, shall be made by the Lender on a date which shall be not later than [NUMBER OF DAYS] days following written request therefore from the Borrower. Prepayment. The Borrower may prepay, in whole or in part, the Principal Indebtedness of the Line of Credit, and all Interest accrued on any outstanding Advances at any time prior to the Maturity Date, without the prior written consent of the Lender and without payment of any premium or penalty. Extension of Maturity Date. At any time prior to the Maturity Date, upon mutual written consent of the Borrower and the Lender, the Maturity Date may be extended for up to an additional three-year period, in which case the "Maturity Date" shall mean such later date as is agreed upon by the Parties. ADDITIONAL AGREEMENTS OF THE BORROWER Conditions Precedent to Disbursement at Closing. Prior to the disbursement of any of the proceeds of the Line of Credit to or for the account of the Borrower at the closing of the Line of Credit, and as a condition precedent to such disbursement, all of the conditions set forth below must be satisfied as determined by the Lender, in the Lender's sole discretion. Line of Credit Documents. On the Effective Date, the Borrower shall execute and deliver to the Lender, a counterpart of all Line of Credit Documents in favor of the Lender. Miscellaneous Items. The Borrower shall deliver to the Lender such other items, documents and evidences pertaining to the Line of Credit as may reasonably be requested by the Lender. REPRESENTATIONS AND WARRANTIES The Borrower does hereby represent and warrant to the Lender, as of the date hereof (except as to any representation or warranty which specifically relates to another date), as follows (provided that any fact or item disclosed with respect to one representation or warranty shall be deemed to be disclosed with respect to each other representations or warranty, but only to the extent that the applicability of such fact or item with respect to such other representation or warranty can reasonably be inferred from the disclosure with respect to such fact or item contained in the disclosure schedules of the Borrower): Authority to Execute and Perform Agreements. The Borrower has the full legal right and power and all authority and approval required to enter into, execute and deliver this Agreement and the other Line of Credit Documents and to perform fully its obligations hereunder and thereunder. The execution and delivery of this Agreement and the other Line of Credit Documents by the Borrower and the consummation of the transactions contemplated hereby and thereby have been or will be duly and validly authorized by all necessary individual and corporate action, and no other proceedings on the part of the Borrower are necessary to authorize this Agreement and the other Line of Credit Documents or to consummate the transactions so contemplated. This Agreement and the other Line of Credit Documents have all been or will be duly executed and delivered and are the valid and binding obligations of the Borrower enforceable against the Borrower in accordance with their terms, except as may be limited by bankruptcy, moratorium, insolvency or other similar laws generally affecting the enforcement of creditors' rights. No Breach
