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Line Of Credit Contract Template for Austria

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Key Requirements PROMPT example:

Line Of Credit Contract

"I need a Line of Credit Contract under Austrian law for a manufacturing company, with a 鈧5 million facility limit, including multi-currency drawdown options in EUR and USD, and specific covenants related to maintaining minimum working capital ratios."

Document background
The Line of Credit Contract serves as a crucial financing instrument in the Austrian market, providing businesses and individuals with flexible access to credit under a pre-approved limit. This document is essential when establishing revolving credit facilities where borrowers need ongoing access to funds rather than a one-time loan. The agreement must comply with Austrian banking regulations, including the Banking Act (BWG) and, where applicable, the Consumer Credit Act (VKrG). It typically includes detailed provisions on credit limits, interest calculations, drawdown mechanisms, security requirements, and borrower obligations. The document is particularly valuable for managing working capital, seasonal business fluctuations, or ongoing operational needs, while ensuring compliance with Austrian financial regulations and EU directives.
Suggested Sections

1. Parties: Identification of the lender (credit institution) and borrower, including full legal names, registration details, and addresses

2. Background: Context of the credit facility and relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Facility Details: Specification of the credit limit, purpose, and type of facility

5. Interest and Fees: Detailed breakdown of interest calculation method, rates (including default interest), and all applicable fees

6. Drawdown Provisions: Terms and conditions for accessing the credit facility, including drawdown procedures and requirements

7. Repayment Terms: Conditions for repayment, minimum payments, and payment schedules

8. Security: Details of any required security or collateral for the facility

9. Representations and Warranties: Statements and assurances made by the borrower regarding their financial condition and ability to repay

10. Covenants: Ongoing obligations of the borrower during the term of the facility

11. Events of Default: Circumstances that constitute default and their consequences

12. Term and Termination: Duration of the facility and conditions for termination

13. Notices: Communication procedures between parties

14. Governing Law and Jurisdiction: Confirmation of Austrian law application and jurisdiction

Optional Sections

1. Guarantees: Required when there is a third-party guarantor for the facility

2. Multi-currency Provisions: Included when the facility can be drawn in multiple currencies

3. Electronic Banking Arrangements: Details of online banking access and security when electronic services are provided

4. Special Drawing Conditions: For facilities with specific purpose restrictions or special drawing requirements

5. Cross-Default Provisions: Included when the borrower has multiple facilities with the same lender

6. Insurance Requirements: When specific insurance coverage is required as part of the facility

7. Change of Circumstances: Provisions for market disruption or significant regulatory changes

8. Assignment and Transfer: Required when transfer rights need to be specifically addressed

Suggested Schedules

1. Schedule 1 - Facility Limits and Pricing: Detailed breakdown of credit limits, interest rates, fees, and pricing structure

2. Schedule 2 - Drawdown Notice Form: Standard form for requesting drawdowns under the facility

3. Schedule 3 - Conditions Precedent: List of documents and conditions required before the facility becomes available

4. Schedule 4 - Security Details: Detailed description of security or collateral arrangements

5. Schedule 5 - Calculation Methods: Detailed explanation of interest and fee calculation methodologies

6. Appendix A - Required Disclosures: Mandatory disclosures required under Austrian banking and consumer protection laws

7. Appendix B - Standard Terms and Conditions: Bank's standard terms and conditions applicable to the facility

8. Appendix C - Fee Schedule: Comprehensive list of all applicable fees and charges

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
























































Clauses







































Relevant Industries

Banking and Financial Services

Real Estate

Manufacturing

Retail

Technology

Healthcare

Construction

Agriculture

Transportation and Logistics

Professional Services

Hospitality

Energy and Utilities

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit Administration

Operations

Corporate Banking

Business Development

Account Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Credit Manager

Risk Manager

Legal Counsel

Compliance Officer

Banking Relationship Manager

Corporate Finance Manager

Financial Controller

Credit Analyst

Account Manager

Business Development Manager

Operations Manager

Financial Planning Analyst

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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