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Credit Purchase Agreement for Australia

Credit Purchase Agreement Template for Australia

A Credit Purchase Agreement is a legally binding document governed by Australian law that establishes the terms and conditions under which a credit provider extends credit to a borrower for the purpose of purchasing goods, assets, or services. The agreement complies with the National Consumer Credit Protection Act 2009 and related Australian legislation, detailing the credit amount, interest rates, repayment terms, security arrangements, and the rights and obligations of all parties involved. It includes necessary consumer protection provisions and mandatory disclosure requirements specific to Australian credit law.

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What is a Credit Purchase Agreement?

The Credit Purchase Agreement is a fundamental financial instrument used in Australian business and consumer transactions where credit is required for significant purchases. This agreement type is commonly used when a party requires financing to purchase assets, equipment, or services, and a credit provider agrees to extend credit subject to specific terms and conditions. The document must comply with Australian credit legislation, particularly the National Consumer Credit Protection Act 2009 and the National Credit Code. It typically includes comprehensive details about the credit facility, security arrangements, repayment terms, and the rights and obligations of all parties. The agreement is essential for protecting both the credit provider's interests and ensuring borrower protections under Australian law.

What sections should be included in a Credit Purchase Agreement?

1. Parties: Identification of the credit provider and borrower(s), including ABN/ACN and registered addresses

2. Background: Context of the credit arrangement and purpose of the facility

3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation

4. Credit Facility Details: Amount, purpose, term, and type of credit facility being provided

5. Interest and Fees: Interest rate(s), calculation method, fees, and charges applicable

6. Repayment Terms: Repayment schedule, method, and conditions

7. Conditions Precedent: Conditions that must be satisfied before the credit facility becomes available

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

9. Borrower Covenants: Ongoing obligations and restrictions on the borrower

10. Events of Default: Circumstances constituting default and consequences

11. Enforcement Rights: Lender's rights and remedies upon default

12. General Provisions: Standard contract clauses including notices, amendments, governing law

What sections are optional to include in a Credit Purchase Agreement?

1. Security Arrangements: Details of any security provided - include when credit is secured

2. Guarantor Provisions: Terms applicable to guarantors - include when guarantors are involved

3. Insurance Requirements: Mandatory insurance coverage - include when specific insurance is required

4. Special Drawdown Conditions: Specific conditions for drawdown - include for complex facilities

5. Review Events: Circumstances triggering review - include for longer-term facilities

6. Multiple Borrower Provisions: Joint and several liability terms - include for multiple borrowers

7. Electronic Transactions: Electronic execution and communication terms - include if relevant

8. Privacy and Information Sharing: Detailed privacy terms - include if extensive data sharing needed

What schedules should be included in a Credit Purchase Agreement?

1. Schedule 1 - Facility Details: Detailed terms of the credit facility including amounts, rates, fees

2. Schedule 2 - Repayment Schedule: Detailed breakdown of repayment amounts and dates

3. Schedule 3 - Security Details: Description of security assets and arrangements

4. Schedule 4 - Special Conditions: Any special or custom terms specific to this facility

5. Schedule 5 - Fee Schedule: Comprehensive list of all fees and charges

6. Appendix A - Direct Debit Request: Direct debit authorization form

7. Appendix B - Compliance Documents: Required regulatory disclosure documents and statements

8. Appendix C - Insurance Requirements: Detailed insurance specifications and requirements

Authors

Alex Denne

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

Jurisdiction

Australia

Publisher

tiktok˰

Sector

Cost

Free to use
Relevant legal definitions








































































Clauses




































Relevant Industries

Financial Services

Banking

Retail

Manufacturing

Construction

Agriculture

Mining

Technology

Healthcare

Real Estate

Transportation

Energy

Relevant Teams

Legal

Finance

Risk Management

Compliance

Treasury

Credit Assessment

Operations

Commercial

Business Development

Account Management

Relevant Roles

Chief Financial Officer

Finance Manager

Credit Manager

Legal Counsel

Compliance Officer

Risk Manager

Treasury Manager

Commercial Director

Financial Controller

Credit Analyst

Loan Officer

Contract Administrator

Business Development Manager

Account Manager

Operations Manager

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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