Facility Agreement: unsecured

£50.00 exc VAT

This facility agreement is for an unsecured loan facility of to a maximum fixed amount to a corporate borrower.  It is suitable for a borrower which is incorporated in England and Wales.

 

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Facility Agreement: unsecured loan facility agreement

Unsecured facility agreement for a corporate borrower – Loan facility agreement

Background 

Why use a facility agreement?

A facility agreement is an arrangement under which a lender agrees to provide one or more loans to a borrower for a period of time and up to specified maximum amount.  A facility agreement may be unsecured or secured.

The facility (if “committed, which means that the lender is committed to provide future loan advances to the borrower under the facility) will enable the borrower to borrow money (and start to pay interest on the amount advanced) when needed.  In exchange for the commitment to lend money when requested, the lender is often paid a commitment fee equal to a percentage of the undrawn facility.

About this Facility Agreement

This facility agreement is for an unsecured loan facility of to a maximum fixed amount to a corporate borrower.  It is suitable for a borrower which is incorporated in England and Wales.

Document features

Features include:

  • 23 clauses and schedules over 14 pages
  • Mechanism for the borrower to request advances, subject to satisfaction of conditions precedent
  • Regular interest payments at either fixed or floating interest rate by reference to specified bank’s base rate of interest
  • Repayment of all loans on a fixed repayment date, with borrower able to prepay in whole or in part
  • Provision for an arrangement fee and facility commitment fee
  • on a single repayment date or in instalments
  • Undertakings to the borrower, including the provision of information to the lender and prohibition on granting security and additional borrowings
  • Events of default

Explanatory guidance

As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.

Facility agreement : unsecured

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