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Facilities Agreement for Singapore

Facilities Agreement Template for Singapore

A Facilities Agreement under Singapore law is a comprehensive legal document that establishes the terms and conditions under which a lender or group of lenders provides financial facilities to a borrower. It incorporates Singapore's strict regulatory requirements under the Banking Act and MAS guidelines, detailing the facility amount, purpose, interest rates, repayment terms, security arrangements, and the parties' respective rights and obligations. The agreement includes specific provisions for compliance with Singapore's financial regulations and banking practices.

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Facilities Agreement

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What is a Facilities Agreement?

The Facilities Agreement is a fundamental document in Singapore's lending landscape, used when a lender extends credit facilities to a borrower. It must comply with Singapore's Banking Act, MAS guidelines, and other relevant financial regulations. The agreement typically covers various types of facilities including term loans, revolving credits, or multiple facility types. It details crucial elements such as facility limits, interest calculations, security requirements, representations and warranties, covenants, and events of default. This comprehensive document is essential for both secured and unsecured lending transactions, particularly in corporate and commercial financing scenarios.

What sections should be included in a Facilities Agreement?

1. Parties: Identification of lender(s), borrower(s), and any guarantors or security providers

2. Background: Context of the facility, purpose of the loan, and basic commercial terms

3. Definitions and Interpretation: Key terms used throughout the agreement and interpretation rules

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

5. Interest and Fees: Interest calculation, payment periods, default interest, and facility fees

6. Repayment and Prepayment: Repayment schedule, prepayment terms, and conditions

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

8. Covenants: Positive and negative undertakings by the borrower

9. Events of Default: Circumstances constituting default and consequences

10. Changes to Parties: Assignment and transfer provisions

What sections are optional to include in a Facilities Agreement?

1. Security: Details of any security arrangements - include when facility is secured

2. Guarantee: Terms of any guarantee provided - include when facility is guaranteed

3. Syndication Provisions: Terms governing multiple lenders - include for syndicated facilities

4. Increased Costs: Provisions for regulatory changes affecting lender's costs - include for longer-term facilities

What schedules should be included in a Facilities Agreement?

1. Conditions Precedent: List of documents and conditions required before drawdown

2. Form of Drawdown Request: Template for borrower to request utilization of the facility

3. Repayment Schedule: Detailed payment dates and amounts

4. Form of Transfer Certificate: Template for transferring facility participation

5. Security Documents: Forms of security documents, if applicable

6. Financial Covenants: Detailed financial ratios and calculations

Authors

Alex Denne

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

Jurisdiction

Singapore

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions































































Clauses











































Industries

Banking Act (Cap. 19): Primary legislation regulating banking business and credit facilities in Singapore, including provisions on prohibited business practices and lending restrictions

Moneylenders Act (Cap. 188): Regulates money lending activities and interest rates, particularly relevant if the lender is not a licensed bank

Securities and Futures Act (Cap. 289): Governs securities-based lending and is relevant if the facility involves securities or is secured by securities

Companies Act (Cap. 50): Covers corporate borrowing powers, financial assistance provisions, and registration of charges

Contracts Act (Cap. 53): Fundamental legislation governing formation and validity of contracts, contractual obligations and remedies

Property Law Act (Cap. 242): Governs security interests over real property, including mortgages and charges

MAS Guidelines: Regulatory guidelines including Notice 635 on lending limits, Notice 612 on credit risk management, and guidelines on responsible financing

Personal Data Protection Act 2012: Governs the treatment and protection of borrower's personal data

AML/CFT Requirements: Anti-Money Laundering and Countering the Financing of Terrorism requirements including KYC obligations and reporting requirements

Bankruptcy Act and Insolvency, Restructuring and Dissolution Act 2018: Governs insolvency provisions and enforcement of security in case of default

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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