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The Letter of Credit Facility Agreement is a critical document in international trade finance, particularly under Austrian jurisdiction. It is used when a company requires regular access to letters of credit for its trading activities, establishing a pre-approved facility with a bank rather than negotiating each letter of credit separately. The agreement covers the maximum facility amount, validity period, types of letters of credit that can be issued, fees, security requirements, and compliance with Austrian banking regulations and EU directives. It's especially relevant for companies engaged in import/export activities or international procurement, providing them with a reliable mechanism to secure their international trade obligations. The document must comply with Austrian banking laws (BWG), while also adhering to international banking practices such as UCP 600.

1. Parties: Identification of the lender (bank), borrower, and any guarantors or other relevant parties

2. Background: Brief context of the facility arrangement and its purpose

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation

4. The Facility: Description of the letter of credit facility, including type, purpose, and overall limit

5. Conditions Precedent: Documents and conditions required before the facility becomes available

6. Utilization: Procedures and requirements for requesting and issuing letters of credit

7. Letters of Credit: Terms governing the issuance, form, and handling of letters of credit

8. Commission, Fees and Expenses: All charges, fees, and costs associated with the facility

9. Payment and Cash Cover: Terms for payments, reimbursements, and cash cover requirements

10. Representations and Warranties: Statements of fact and assurances given by the borrower

11. Undertakings: Positive and negative obligations of the borrower during the facility period

12. Events of Default: Circumstances constituting default and their consequences

13. Changes to Parties: Provisions for transfers, assignments, and changes in facility participants

14. Administration: Administrative aspects including notices, calculations, and payment mechanics

15. Governing Law and Jurisdiction: Choice of Austrian law and jurisdiction provisions