Facility Agreement: secured
Facility agreement for a secured loan facility to a corporate borrower which is incorporated in England and Wales, to be available to be drawn during an availability period and repayable on a fixed repayment date.
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When do I use this document?
- for a secured loan facility to be available for drawing during an availability period
- for a borrower which is a company incorporated in England and Wales
What are the key features?
- 23 clauses and two schedules over 15 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
- undertakings from the borrower, including to provide information to the lender and prohibition on granting security and additional borrowings
- events of default, leading to the lender having the right to stop further advances and demand immediate repayment
What else do I need to know?
The security would need to be created and governed by a separate security document between the borrower and the lender, depending on the nature of the secured property or assets. Examples of security documents include:
- a charge over property
- a charge over shares
- a debenture, containing fixed and floating charges over all of the borrower’s assets and undertaking
What other documents are available?
For a form of unsecured facility agreement, see
For forms of unsecured and secured loan agreements, see
When do I use this document?
- secured loan agreement for a secured loan of a fixed amount to be drawn in a single advance
- for a borrower which is a company incorporated in England and Wales
- for a loan repayable on a single repayment date or in instalments
What are the key features?
- easy to edit, with 21 clauses over 13 pages
- single advance of specified loan amount
- regular interest payments at either fixed or floating interest rate by reference to specified bank’s base rate of interest
- repayment either on a single repayment date or in instalments
- undertakings from the borrower, including to provide information to the lender and prohibition on granting security and additional borrowings
- events of default, including a failure by the borrower to repay the loan or interest, leading to the lender having the right to demand immediate repayment
What else do I need to know?
The security would need to be created and governed by a separate security document between the borrower and the lender, depending on the nature of the secured property or assets. Examples of security documents include:
- a charge over property
- a charge over shares
- a debenture, containing fixed and floating charges over all of the borrower’s assets and undertaking
What other documents are available?
For a form of unsecured loan document, see
For forms of unsecured and secured facility agreements, for advances of loans in several lump sums, see
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Updated by a lawyer on 03/09/2024
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