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A Credit Agreement Letter is a fundamental document in Malaysian banking and finance, used when a financial institution approves a credit facility for a borrower. It serves as both a formal offer of credit and a binding agreement once accepted by the borrower. The document must adhere to Malaysian banking regulations, including the Financial Services Act 2013 and Bank Negara Malaysia guidelines. It typically follows a standardized format that includes credit terms, interest rates, repayment schedules, security requirements, and conditions precedent. The letter is particularly important in Malaysia's financial sector as it provides legal protection for both parties and ensures compliance with local regulatory requirements. It can be used for various types of credit facilities, from simple personal loans to complex corporate financing arrangements.

1. Letterhead and Date: Financial institution's letterhead, reference number, and date of the letter

2. Recipient Details: Full name and address of the borrower

3. Subject Line: Clear indication that this is a Credit Agreement Letter with reference to any application numbers

4. Greeting: Formal salutation to the borrower

5. Approval Statement: Clear statement of credit approval and reference to the borrower's application

6. Facility Details: Type of credit facility, amount approved, and purpose of the facility

7. Interest Rate: Applicable interest rate, whether fixed or floating, and basis of calculation

8. Repayment Terms: Payment schedule, installment amounts, and duration of the facility

9. Conditions Precedent: Conditions that must be fulfilled before the facility becomes effective

10. Key Covenants: Main obligations and restrictions on the borrower

11. Events of Default: Circumstances that would constitute default and consequences

12. Acceptance Section: Space for borrower's acknowledgment and acceptance of terms