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Revolving Line Of Credit Agreement Template for Singapore

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Key Requirements PROMPT example:

Revolving Line Of Credit Agreement

"Need a Revolving Line of Credit Agreement for a manufacturing company seeking SGD 5 million facility from DBS Bank, with quarterly financial covenants and security over company assets, to be completed by March 2025."

What is a Revolving Line Of Credit Agreement?

The Revolving Line of Credit Agreement is essential for businesses seeking flexible financing solutions in Singapore. It enables borrowers to access funds up to a predetermined limit, with the ability to repay and reborrow as needed. This agreement type is particularly valuable for managing working capital, seasonal cash flow fluctuations, or ongoing operational needs. Governed by Singapore law and regulated by the Monetary Authority of Singapore, the agreement must comply with strict banking regulations and financial sector guidelines. It typically includes comprehensive terms covering facility limits, interest calculations, security arrangements, covenant requirements, and default provisions, providing both parties with clear rights and obligations within Singapore's legal framework.

What sections should be included in a Revolving Line Of Credit Agreement?

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

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

3. Definitions: Key terms used tHRoughout the agreement including Facility Amount, Interest Rate, Availability Period, etc.

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

5. Interest and Fees: Interest calculation method, rates, payment periods, and associated fees

6. Drawdown Conditions: Prerequisites and procedures for drawing down the facility

7. Repayment Terms: Repayment schedule, methods, and prepayment provisions

8. Representations and Warranties: Standard declarations by the borrower about their legal and financial status

9. Covenants: Ongoing obligations of the borrower during the facility period

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

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

1. Security: Details of any collateral or security arrangements when the facility is secured

2. Guarantees: Terms of any guarantees provided when there are third-party guarantors

3. Insurance: Required insurance coverage for security when insurance is required for secured assets

4. Change of Circumstances: Provisions for market disruption or change in law, typically used for longer-term facilities

What schedules should be included in a Revolving Line Of Credit Agreement?

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

2. Form of Drawdown Notice: Template for borrower to request drawdown

3. Calculation of Interest: Detailed methodology for interest calculation

4. Fee Schedule: Comprehensive list of all applicable fees

5. Security Documents: Forms and details of security arrangements if applicable

6. Compliance Certificate: Template for periodic financial compliance reporting

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

Relevant legal definitions










































Clauses


































Industries

Banking Act (Cap. 19): Primary legislation governing banking institutions and their operations in Singapore, including credit facilities and banking regulations

Securities and Futures Act (Cap. 289): Regulates financial products and services, including certain types of credit facilities that may involve securities

Moneylenders Act (Cap. 188): Governs money lending activities and sets requirements for interest rates, documentation, and lending practices

Companies Act (Cap. 50): Regulates corporate borrowing and provides framework for company obligations in credit agreements

Contract Law Act (Cap. 53): Provides the fundamental legal framework for contract formation and enforcement in Singapore

Unfair Contract Terms Act (Cap. 396): Controls the use of unfair terms in contracts and protects against unreasonable contract provisions

MAS Guidelines on Fair Dealing: Regulatory guidelines ensuring fair dealing principles in financial products and services

MAS Notice 634: Regulations on banking secrecy and confidentiality requirements in banking transactions

MAS Notice 635: Guidelines specific to unsecured credit facilities and their management

Conveyancing and Law of Property Act (Cap. 61): Governs property-related security arrangements in credit facilities

Registration of Deeds Act (Cap. 269): Requirements for registration of security interests and related documentation

Consumer Protection (Fair Trading) Act: Protects consumer interests in financial transactions and ensures fair trading practices

Personal Data Protection Act 2012: Governs the collection, use, and disclosure of personal data in credit agreements and banking relationships

MAS Notice 626: Anti-money laundering and countering the financing of terrorism requirements for credit facilities

Corruption, Drug Trafficking and Other Serious Crimes Act: Provides framework for preventing the use of credit facilities for money laundering or criminal activities

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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