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Loan Facility Agreement
I need a bilateral Loan Facility Agreement under Canadian law for a secured term loan of CAD 5 million to a manufacturing company, with quarterly repayments starting March 2025 and including standard covenants and security over the borrower's equipment and inventory.
1. Parties: Identification of the lender(s) and borrower(s), and any guarantors
2. Background: Context of the loan facility and purpose of the agreement
3. Definitions and Interpretation: Defined terms, rules of interpretation, and currency conventions
4. The Facility: Core terms of the loan facility including amount, purpose, and availability
5. Conditions Precedent: Conditions that must be satisfied before drawdown
6. Drawdown: Procedures and requirements for utilizing the facility
7. Interest: Interest rates, calculation methods, and payment provisions
8. Repayment: Terms for repayment of principal and interest
9. Prepayment: Provisions for early repayment and any associated fees
10. Representations and Warranties: Borrower's statements of fact and assurances
11. Covenants: Ongoing obligations of the borrower
12. Events of Default: Circumstances constituting default and consequences
13. Changes to Parties: Assignment and transfer provisions
14. Administration: Operational aspects of the facility
15. Notices: Communication requirements and methods
16. Miscellaneous: Boilerplate provisions including severability and amendments
17. Governing Law and Jurisdiction: Choice of law and dispute resolution provisions
1. Security: Required if the loan is secured, detailing the security package and enforcement rights
2. Guarantees: Required if there are guarantors, detailing guarantee obligations
3. Syndication Provisions: Required for syndicated facilities, including agency and majority lender provisions
4. Market Disruption: Required for facilities with floating interest rates, addressing market disruption scenarios
5. Increased Costs: Required for longer-term facilities, addressing regulatory changes affecting lenders' costs
6. Tax Gross-Up and Indemnities: Required if tax implications need specific attention, particularly with cross-border lending
7. Multiple Currencies: Required for multi-currency facilities, including currency conversion provisions
8. Accordion Feature: Optional feature allowing for future increase in facility amount
9. Letter of Credit Facility: Required if the facility includes letter of credit issuance
1. Conditions Precedent: Detailed list of required documents and conditions
2. Form of Drawdown Request: Template for borrower to request facility utilization
3. Calculation of Interest: Detailed methodology for interest calculations
4. Repayment Schedule: Amortization schedule for term facilities
5. Forms of Transfer Certificates: Templates for transferring facility participations
6. Financial Covenants: Detailed financial covenant calculations and definitions
7. Security Documents: Forms of security documents and guarantees
8. Borrower Group Structure: Corporate structure chart of borrower group
9. Existing Security: Details of existing security and permitted encumbrances
10. Form of Compliance Certificate: Template for periodic compliance reporting
Authors
Banking
Financial Services
Real Estate
Manufacturing
Retail
Technology
Healthcare
Energy
Infrastructure
Transportation
Agriculture
Mining
Telecommunications
Construction
Hospitality
Legal
Finance
Treasury
Risk Management
Compliance
Credit
Corporate Banking
Business Development
Executive Management
Company Secretariat
Portfolio Management
Transaction Management
Chief Financial Officer
Finance Director
Treasury Manager
Corporate Lawyer
Legal Counsel
Risk Manager
Credit Manager
Relationship Manager
Compliance Officer
Financial Controller
Business Development Manager
Chief Executive Officer
Company Secretary
Banking Officer
Senior Loan Officer
Credit Analyst
Transaction Manager
Portfolio Manager
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