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The Bridge Financing Agreement is a crucial financial instrument in New Zealand's corporate lending landscape, designed to provide interim financing solutions when there is a timing gap between immediate funding needs and long-term financing arrangements. This document type is commonly utilized in situations such as property acquisitions, corporate takeovers, or development projects where temporary funding is required to facilitate completion of a transaction or maintain operations until permanent financing is secured. The agreement incorporates key elements required under New Zealand financial services legislation, including the Financial Markets Conduct Act 2013 and Credit Contracts and Consumer Finance Act 2003, ensuring compliance with local regulatory requirements while providing a flexible financing structure. It typically includes comprehensive provisions for security arrangements, drawdown mechanics, repayment terms, and events of default, tailored to the specific needs of the transaction and the parties involved.

1. Parties: Identifies and defines the Lender(s) and Borrower(s) and their legal details

2. Background: Sets out the context of the bridge financing, including the purpose of the loan and any relevant corporate approvals

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. The Facility: Details the amount, purpose, and nature of the bridge financing facility

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

6. Drawdown: Specifies the drawdown mechanics, notice requirements, and any limitations

7. Interest and Fees: Details the interest rate, calculation method, payment dates, and any associated fees

8. Repayment and Prepayment: Specifies repayment terms, maturity date, and any prepayment provisions

9. Security: Describes the security arrangements for the facility

10. Representations and Warranties: Sets out the borrower's representations and warranties

11. Undertakings: Lists the positive and negative covenants of the borrower

12. Events of Default: Defines events triggering default and the lender's remedies

13. Changes to Parties: Addresses assignment and transfer provisions

14. Notices: Specifies how formal communications between parties should be made

15. General Provisions: Contains boilerplate clauses including governing law, jurisdiction, and amendments