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Term Loan Credit Agreement for the United States

Term Loan Credit Agreement Template for United States

A Term Loan Credit Agreement is a comprehensive legal document governed by U.S. federal and state laws that establishes the terms and conditions of a term loan between a lender and borrower. It details the loan amount, interest rate, repayment schedule, conditions precedent, representations and warranties, covenants, and events of default. The agreement incorporates various regulatory requirements including truth in lending provisions, securities laws (where applicable), and banking regulations.

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Term Loan Credit Agreement

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What is a Term Loan Credit Agreement?

The Term Loan Credit Agreement is essential for documenting medium to long-term financing arrangements in the United States. It serves as the primary contract governing the relationship between lenders and borrowers, establishing their respective rights and obligations. This agreement is particularly crucial for corporate financing, acquisitions, and capital expenditure funding. It includes detailed provisions on loan mechanics, borrower obligations, financial covenants, and remedies in case of default, while ensuring compliance with applicable U.S. banking regulations and securities laws.

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

1. Parties: Identification of lender(s) and borrower(s), including legal names and addresses

2. Background/Recitals: Purpose of the loan, context, and basic transaction structure

3. Definitions: Key terms used throughout the agreement

4. Loan Terms: Principal amount, interest rate, maturity date, and payment terms

5. Conditions Precedent: Conditions that must be satisfied before loan disbursement

6. Representations and Warranties: Borrower's statements about its legal and financial condition

7. Covenants: Affirmative and negative obligations of the borrower during loan term

8. Events of Default: Circumstances constituting default and remedies

9. Miscellaneous: Standard legal provisions including governing law, notices, amendments

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

1. Security: Details of collateral and security arrangements (used for secured loans only)

2. Guarantees: Terms of any guarantees provided by third parties

3. Tax Provisions: Detailed tax-related obligations and withholding requirements for cross-border loans or complex tax structures

4. Agency Provisions: Rights and obligations of administrative agent in syndicated loans

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

1. Form of Note: Template promissory note

2. Repayment Schedule: Detailed amortization schedule

3. Existing Indebtedness: List of borrower's existing debt obligations

4. Permitted Liens: List of approved existing liens

5. Collateral Description: Detailed description of security assets

6. Compliance Certificate: Form for periodic financial compliance reporting

7. Notice Addresses: Contact details for all parties

8. Closing Checklist: List of required closing deliverables

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

United States

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Clauses




































Industries

Truth in Lending Act (TILA): Federal law that requires lenders to provide standardized disclosures about credit terms and costs to borrowers.

Equal Credit Opportunity Act (ECOA): Prohibits discrimination in lending based on race, color, religion, national origin, sex, marital status, age, or source of income.

Fair Credit Reporting Act (FCRA): Regulates the collection, dissemination, and use of consumer credit information.

Dodd-Frank Act: Comprehensive financial reform legislation that includes provisions affecting lending practices and consumer protection.

Bank Secrecy Act (BSA): Requires financial institutions to assist government agencies in detecting and preventing money laundering.

USA PATRIOT Act: Establishes Know Your Customer (KYC) requirements and other anti-money laundering provisions.

Uniform Commercial Code (UCC): Standardizes business laws across states, particularly Article 9 governing secured transactions.

Securities Acts: The Securities Act of 1933 and Exchange Act of 1934 regulate securities markets and protect investors.

Federal Banking Regulations: Regulations from Federal Reserve, OCC, and FDIC governing banking operations and lending practices.

U.S. Bankruptcy Code: Federal law governing bankruptcy proceedings and creditor rights.

State Usury Laws: State-specific laws limiting maximum interest rates and loan charges.

Blue Sky Laws: State-specific securities laws regulating the offering and sale of securities.

Internal Revenue Code: Federal tax laws affecting loan transactions, including interest deductibility and withholding requirements.

FATCA: Foreign Account Tax Compliance Act requirements for international financial transactions.

Environmental Laws: CERCLA and state regulations affecting loans secured by real estate or involving environmental risks.

CFPB Regulations: Consumer Financial Protection Bureau rules protecting consumers in financial transactions.

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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