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The Letter of Credit Loan Agreement is a crucial document in international trade finance, used when a company requires a dedicated facility for the issuance of letters of credit to support its trading activities. This agreement, governed by Belgian law, establishes the terms under which a bank will issue letters of credit on behalf of the borrower, typically to facilitate international trade transactions. It includes detailed provisions on facility limits, conditions for issuance, fees, security requirements, and repayment obligations. The document incorporates international banking practices (UCP 600) while ensuring compliance with Belgian legal requirements and EU regulations. This type of agreement is particularly important for businesses engaged in import/export activities that need reliable access to letter of credit facilities for their ongoing operations.

1. Parties: Identification of the lender (typically a bank), the borrower, and any guarantors

2. Background: Context of the agreement including the borrower's request for the letter of credit facility and the lender's agreement to provide it

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

4. The Facility: Details of the letter of credit facility including the maximum amount, purpose, and availability period

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

6. Utilization: Process and requirements for requesting and issuing letters of credit under the facility

7. Letter of Credit Terms: Specific terms governing the letters of credit, including form, content, and applicable UCP rules

8. Fees and Commissions: All fees payable including issuance fees, commitment fees, and amendment fees

9. Payment Terms: Terms for reimbursement of drawings under letters of credit and payment of other amounts

10. Representations and Warranties: Standard representations and warranties given by the borrower

11. Covenants: Positive and negative undertakings of the borrower

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

13. Changes to Parties: Rules regarding assignment, transfer, and delegation

14. Notices: Communication procedures between parties

15. Governing Law and Jurisdiction: Belgian law as governing law and jurisdiction provisions