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Commercial Credit Agreement Template for Ireland

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Key Requirements PROMPT example:

Commercial Credit Agreement

"I need a Commercial Credit Agreement for a €5 million secured term loan facility to be provided by AIB Bank to a manufacturing company, with quarterly repayments over 5 years starting March 2025, including personal guarantees from two directors."

Document background
Commercial Credit Agreements are fundamental instruments in business financing under Irish law, used when a financial institution provides credit facilities to commercial entities. These agreements are essential for various business purposes, including working capital financing, asset acquisition, business expansion, or project financing. The document must comply with Irish financial services legislation, Central Bank regulations, and relevant EU directives. It typically includes detailed provisions on facility terms, security arrangements, borrower obligations, and lender's rights. Commercial Credit Agreements require careful consideration of both the lender's risk management requirements and the borrower's operational needs, while ensuring compliance with regulatory requirements for commercial lending in Ireland.
Suggested Sections

1. Parties: Identification of the lender and borrower with full legal names and addresses

2. Background: Context of the agreement including purpose of the facility and any relevant business relationship context

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation

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

5. Interest and Fees: Interest rate provisions, calculation methods, default interest, and all applicable fees

6. Repayment Terms: Repayment schedule, prepayment provisions, and payment mechanics

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

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

9. Covenants: Positive and negative obligations of the borrower during the facility period

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

11. Changes to Parties: Provisions regarding assignment, transfer, and succession

12. Notices: Communication methods and contact details for formal notices

13. Calculations and Certificates: Provisions regarding calculations of amounts due and certification processes

14. Governing Law and Jurisdiction: Specification of Irish law as governing law and jurisdiction arrangements

Optional Sections

1. Security: Required when the facility is secured - details security arrangements and enforcement rights

2. Guarantees: Required when there are personal or corporate guarantees supporting the facility

3. Syndication Provisions: Required for syndicated facilities involving multiple lenders

4. Tax Gross-Up and Indemnities: Detailed tax provisions required for cross-border transactions or specific tax arrangements

5. Increased Costs and Illegality: Required for longer-term facilities to address regulatory changes

6. Set-off Rights: Optional provisions for lender's right to set off debts against other accounts

7. Multicurrency Provisions: Required when the facility can be drawn in multiple currencies

8. Break Costs: Required for term facilities with fixed interest periods

Suggested Schedules

1. Schedule 1 - Conditions Precedent Documents: List of required documents and conditions to be satisfied before drawdown

2. Schedule 2 - Form of Drawdown Request: Template for borrower to request drawings under the facility

3. Schedule 3 - Repayment Schedule: Detailed repayment dates and amounts if term loan

4. Schedule 4 - Form of Compliance Certificate: Template for periodic compliance certification by borrower

5. Schedule 5 - Security Documents: List and copies of security documents if facility is secured

6. Schedule 6 - Permitted Security: List of security interests permitted to exist over borrower's assets

7. Schedule 7 - Form of Transfer Certificate: Template for transferring lender rights and obligations

8. Appendix A - Calculation of Interest and Fees: Detailed methodology for calculating interest and fees

9. Appendix B - Contact Details: Comprehensive contact information for all parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






































































Clauses







































Relevant Industries

Banking and Financial Services

Commercial Real Estate

Manufacturing

Retail

Technology

Healthcare

Construction

Agriculture

Energy

Transportation and Logistics

Hospitality

Professional Services

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Banking

Commercial Banking

Risk Management

Operations

Executive Leadership

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Commercial Director

Credit Manager

Risk Manager

Compliance Officer

Corporate Banker

Relationship Manager

Chief Executive Officer

Company Secretary

Financial Controller

Business Development Director

Operations Director

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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