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Commercial Credit Agreement
"I need a Commercial Credit Agreement for a USD 10 million facility between Bank Mandiri as lender and PT Global Manufacturing Indonesia as borrower, with specific provisions for machinery purchase financing and quarterly repayments starting March 2025."
1. Parties: Identification of the lender(s) and borrower(s) with their complete legal details and registration information
2. Background: Context of the credit facility, purpose, and basic commercial understanding between the parties
3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and rules of interpretation
4. The Facility: Detailed terms of the credit facility including amount, purpose, and availability period
5. Interest and Fees: Interest rate calculation, payment periods, default interest, and all applicable fees
6. Drawdown Conditions: Precedent conditions and procedural requirements for utilizing the facility
7. Repayment and Prepayment: Terms for scheduled repayments, voluntary prepayments, and mandatory prepayment events
8. Security: Details of security arrangements, guarantees, and collateral requirements
9. Representations and Warranties: Statements of fact and assurances given by the borrower
10. Covenants: Positive and negative undertakings of the borrower during the facility period
11. Events of Default: Circumstances constituting default and consequences thereof
12. Changes to Parties: Rules for assignment, transfer, and changes in facility participants
13. Administration: Practical aspects of facility management, notices, and calculations
14. Governing Law and Jurisdiction: Choice of Indonesian law and jurisdiction arrangements
15. Execution: Signature blocks and execution formalities
1. Syndication Provisions: Required when multiple lenders are involved or syndication is contemplated
2. Currency Provisions: Needed for facilities involving foreign currency or multiple currencies
3. Islamic Banking Provisions: Required when the facility needs to comply with Sharia principles
4. Tax Provisions: Detailed section needed when complex tax arrangements apply or for cross-border facilities
5. Special Drawing Conditions: For facilities with project-specific or milestone-based drawdown requirements
6. Insurance Requirements: Detailed insurance provisions when specific insurance coverage is critical
7. Security Sharing: Required when security is shared with other creditors
8. Subordination Provisions: Needed when there are multiple layers of debt or intercreditor arrangements
1. Facility Summary: Key commercial terms including facility amount, interest rate, and tenure
2. Conditions Precedent: Detailed list of required documents and conditions for facility effectiveness
3. Form of Drawdown Notice: Standard form for requesting facility utilization
4. Repayment Schedule: Detailed amortization schedule if applicable
5. Security Documents: List and copies of all security documents
6. Form of Compliance Certificate: Template for periodic compliance reporting
7. Authorized Signatories: List of persons authorized to act for each party
8. Fee Schedule: Detailed breakdown of all applicable fees
9. Financial Covenants Calculations: Formulas and methods for calculating financial covenants
Authors
Banking and Financial Services
Manufacturing
Real Estate and Property Development
Infrastructure and Construction
Mining and Natural Resources
Agriculture and Plantation
Retail and Commerce
Technology and Telecommunications
Transportation and Logistics
Energy and Utilities
Healthcare and Pharmaceuticals
Hospitality and Tourism
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Banking
Credit Analysis
Operations
Business Development
Corporate Secretary Office
Chief Financial Officer
Finance Director
Treasury Manager
Corporate Finance Manager
Legal Counsel
Compliance Officer
Credit Risk Manager
Relationship Manager
Corporate Banking Officer
Finance Manager
Company Secretary
Risk Management Officer
Financial Controller
Credit Analyst
Business Development Manager
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