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Finance Contract for Australia

Finance Contract Template for Australia

An Australian Finance Contract is a legally binding agreement that establishes the terms and conditions for the provision of financial facilities between a lender and borrower under Australian law. The document incorporates requirements from the National Consumer Credit Protection Act 2009 (Cth), Australian Securities and Investments Commission Act 2001, and other relevant Australian financial services legislation. It details loan amounts, interest rates, repayment terms, security arrangements, conditions precedent, representations and warranties, covenants, and events of default, while ensuring compliance with Australian consumer protection and financial services regulations.

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What is a Finance Contract?

The Finance Contract serves as the primary documentation for financial facilities in Australia, establishing the legal relationship between financial institutions and borrowers. It is used when a party requires financing and another party agrees to provide it, whether for business operations, asset acquisition, or other purposes. The document must comply with Australian financial services regulations, including the National Consumer Credit Protection Act 2009 (Cth) and ASIC requirements. It typically includes detailed terms about the facility amount, interest calculations, repayment obligations, security arrangements, and default provisions. The Finance Contract is essential for both consumer and commercial lending transactions in Australia, requiring careful consideration of regulatory compliance, risk allocation, and commercial terms.

What sections should be included in a Finance Contract?

1. Parties: Identification of all parties to the agreement, including lender, borrower, and any guarantors

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

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. The Facility: Details of the loan/facility amount, purpose, and availability

5. Interest: Interest rate, calculation method, payment frequency, and default interest provisions

6. Repayment: Repayment terms, schedule, and mechanics

7. Fees and Costs: All applicable fees, charges, and cost recovery provisions

8. Conditions Precedent: Conditions that must be satisfied before facility availability

9. Representations and Warranties: Standard representations and warranties by the borrower

10. Undertakings: General and financial covenants of the borrower

11. Events of Default: Circumstances constituting default and consequences

12. Payments: Payment mechanics, timing, and application of payments

13. GST: Goods and Services Tax provisions and treatment

14. Privacy: Privacy obligations and consents for handling personal information

15. Notices: Communication requirements and contact details

16. General Provisions: Standard boilerplate provisions including governing law

17. Execution: Execution blocks and attestation requirements

What sections are optional to include in a Finance Contract?

1. Security: Required when the facility is secured, detailing the security arrangements and obligations

2. Guarantee: Required when there are guarantors, detailing guarantee obligations

3. Insurance: Required when specific insurance obligations are imposed on the borrower

4. Special Drawdown Conditions: Used for facilities with multiple drawdowns or special drawing requirements

5. Review Events: Used in facilities where periodic reviews may trigger changes to terms

6. Market Disruption: Required for facilities with variable rates tied to market benchmarks

7. Increased Costs: Used when regulatory changes might affect the lender's costs

8. Facility Assignment: Required when the facility may be assigned or syndicated

9. Multiple Borrowers: Required when there are multiple borrowers, detailing joint and several liability

What schedules should be included in a Finance Contract?

1. Schedule 1 - Facility Details: Key commercial terms including amount, interest rate, fees, and repayment schedule

2. Schedule 2 - Conditions Precedent: Detailed list of required documents and conditions

3. Schedule 3 - Drawdown Notice: Form of drawdown notice for the facility

4. Schedule 4 - Compliance Certificate: Form of periodic compliance certificate

5. Schedule 5 - Security Details: Details of any security provided including property descriptions

6. Schedule 6 - Fee Schedule: Detailed breakdown of all fees and charges

7. Appendix A - Calculation Methods: Detailed methods for calculating interest, fees, and other amounts

8. Appendix B - Required Forms: Standard forms for notices, certificates, and other communications

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˰

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions










































































































Clauses





































Relevant Industries

Banking

Financial Services

Real Estate

Construction

Manufacturing

Retail

Agriculture

Mining

Technology

Healthcare

Education

Transport

Infrastructure

Professional Services

Hospitality

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit

Corporate Finance

Operations

Commercial

Executive Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Financial Controller

Credit Manager

Risk Manager

Compliance Officer

Legal Counsel

Banking Relationship Manager

Loan Officer

Corporate Finance Manager

Company Secretary

Managing Director

Finance Manager

Commercial 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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