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Revolving Credit Loan Agreement for Singapore

Revolving Credit Loan Agreement Template for Singapore

A Revolving Credit Loan Agreement under Singapore law establishes a flexible borrowing arrangement where the borrower can draw down, repay, and reborrow funds up to a specified limit during the facility period. The agreement is governed by Singapore's Banking Act and relevant MAS regulations, incorporating specific requirements for interest rates, security arrangements, and borrower protections under Singapore law. It includes detailed provisions for drawdown mechanisms, repayment terms, financial covenants, and events of default.

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Revolving Credit Loan Agreement

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What is a Revolving Credit Loan Agreement?

The Revolving Credit Loan Agreement is commonly used in Singapore when parties seek to establish a flexible lending arrangement that allows for multiple drawdowns and repayments. It's particularly suited for businesses requiring ongoing access to working capital or individuals needing flexible credit arrangements. The document comprehensively addresses key aspects such as facility limits, interest calculations, security arrangements, and compliance with Singapore's banking regulations and MAS guidelines. This type of agreement is especially relevant in the context of Singapore's position as a major financial hub, where such facilities are frequently used for both corporate and individual lending.

What sections should be included in a Revolving Credit Loan Agreement?

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

2. Background: Context of the revolving credit facility and relationship between parties

3. Definitions: Key terms used throughout the agreement including facility amount, interest rate, and other critical definitions

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

5. Interest and Fees: Interest rate calculation, payment terms, and applicable fees including commitment fees and processing charges

6. Drawdown: Conditions and procedures for utilizing the facility, including notice requirements and minimum drawdown amounts

7. Repayment: Terms of repayment including minimum payments, prepayment provisions, and payment mechanics

8. Representations and Warranties: Standard declarations by the borrower about their status, capacity, and compliance with laws

9. Events of Default: Circumstances constituting default and consequences, including acceleration rights

What sections are optional to include in a Revolving Credit Loan Agreement?

1. Security: Details of any collateral or guarantees required to secure the facility

2. Insurance: Requirements for insurance coverage of any secured assets or key person insurance

3. Financial Covenants: Financial ratios and requirements to be maintained by the borrower during the facility period

4. Change of Control: Provisions dealing with changes in ownership or control of the borrower

What schedules should be included in a Revolving Credit Loan Agreement?

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

2. Schedule 2 - Form of Drawdown Notice: Template for requesting drawdowns under the facility

3. Schedule 3 - Repayment Schedule: Schedule of minimum repayment amounts and dates if applicable

4. Schedule 4 - Security Documents: List and copies of security documents if facility is secured

5. Schedule 5 - Fee Schedule: Detailed breakdown of all applicable fees and charges

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

Financing Agreement

Cost

Free to use
Relevant legal definitions





































Clauses




































Industries

Banking Act (Cap. 19): Primary legislation regulating banking business and credit facilities in Singapore. Contains key provisions on banking secrecy and disclosure requirements.

Moneylenders Act (Cap. 188): Regulates moneylending activities in Singapore. Particularly relevant if the lender is not a licensed bank.

Consumer Protection (Fair Trading) Act: Provides consumer protection measures. Applicable when the borrower is a consumer rather than a business entity.

Civil Law Act (Cap. 43): Contains crucial provisions regarding interest rates and charges. Section 6 specifically addresses contractual interest rates.

MAS Guidelines: Regulatory guidelines from Monetary Authority of Singapore covering responsible lending, credit facilities requirements, and Total Debt Servicing Ratio (TDSR) framework.

MAS Notice 635: Specific MAS directive governing loan collection practices.

MAS Notice 645: Specific MAS directive on credit risk management requirements.

Personal Data Protection Act 2012: Legislation governing the handling and protection of borrower's personal data in the context of the loan agreement.

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

Unfair Contract Terms Act: Legislation ensuring that contract terms are fair and reasonable, protecting against unfair advantages in contractual relationships.

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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