[{"data":1,"prerenderedAt":525},["ShallowReactive",2],{"document-facility-agreement-D13269":3},{"document":4,"label":23,"preview":11,"thumb":24,"thumb600":25,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":26,"breadcrumb":30,"related":38,"customDescModule":178,"customdescription":6,"mdFm":179,"mdProseHtml":524},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"FACILITY AGREEMENT This Facility Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), a Company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at: [YOUR COMPLETE ADDRESS] AND: [BORROWER NAME], (the \"Borrower\"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] Collectively, the Lender and Borrower shall be referred to as the \"Parties.\" WHEREAS, the Borrower has requested the Lender for grant of Facility (as described below) to the Borrower on the terms and conditions mentioned in this Agreement and other Transaction Documents. WHEREAS, the Lender has at such request of the Borrower agreed to grant all or some or any of the aforesaid Facilities subject inter alia to the terms and conditions contained in this Agreement and also in the other Transaction Documents including Security Documents or any of them and on such other terms and conditions as may be deemed necessary and notified from time to time by the Lender to the Borrower. NOW, THEREFORE, the Parties agree as follows: DEFINITIONS \"Agreement\" means this Facility Agreement and any amendment/modifications made thereto from time to time by the Parties hereto and shall include the Schedule hereto. \"Borrower\" means the personas defined above and includes any Co-Borrower/Joint Borrower. \"Borrower's Dues\" means and includes the outstanding principal amount of the Facility, Interest on the Facility, all other interest, all fees, costs, charges, expenses, stamp duty (including registration and filing charges and taxes of any description whatsoever as may be levied from time to time by the Government or other authority) and all other sums whatsoever payable by the Borrower to the Lender in accordance with the terms and conditions of the Facility and Transaction Documents, as well as all other monies whatsoever stipulated in or payable by the Borrower under the Facility. \"Due Date\" means the date(s) on which any amounts in respect of the Borrower's Dues, including the principal amounts of the Facility, Interest and/or any other monies, falls due, as specified in the Facility Application and/or the Sanction Letter and the other Transaction Documents. \"Interest\" shall mean the rate of Interest chargeable on the Facility at the rate and calculated in a manner specifically mentioned in the Schedule attached hereto and shall include any change of Interest on account of change in the Lender's internal policy or any directives/guidelines by the change in the Base rate or due to any other reasons. \"Parties\" means the Lender and the Borrower who are party to this Agreement. \"Prepayment\" means premature repayment of the Facility as per the terms and conditions laid down by the Lender in that behalf and as in force at the time of Prepayment. \"Schedule\" means and includes the Schedule attached hereto and forming an integral part of the Agreement. \"Security\" means the security interest created by the Security Provider in favor of the Lender as desired by the Lender on the Secured Property under each of the Security Documents in accordance with this Agreement. \"Security Documents\" means any documents, deeds, or agreements in relation to the creation of Security or the Additional Security in favor of the Lender. \"Security Provider\" means the Borrower or any third party who, on the request of the Borrower, has agreed to provide Security in favor of the Lender and shall include any guarantor providing the guarantee to secure the obligations under this Agreement. \"Transaction Documents\" means this Agreement, any Security Documents, Facility Application, or Sanction Letter and includes all writings and other documents executed or entered into or to be executed or entered into by the Borrower, or, as the case may be, by any other person, in relation to, or pertaining to the Facility and each such Transaction Document as amended from time to time. BASIS OF AGREEMENT The Borrower's Application and subsequent correspondence with the Lender and Lender's Sanction Letter referred to under Schedule I (d) of this Agreement shall be deemed to constitute the basis of this Agreement and of the credit facilities as hereinafter stated. The Borrower hereby agrees that the said advance shall be governed by the terms and conditions contained herein as well as those embodied in the Sanction Letter, and other loan and/or Security Documents except insofar as the loan/Security Documents may expressly or by necessary implication be modified by these presents. DISBURSAL OF FACILITY The loan will be disbursed to the Borrower in one or more installment(s) as may be required by the Borrower. The disbursement may be direct to the supplier or by credit to the Savings Lender or Current Account of the Borrower, depending upon the purpose for which the loan is sanctioned. The Borrower shall give at least three (3) clear days' prior notice of withdrawal of any installment of the loan, which advice may be waived by the Lender at its option. In the case of joint borrowing by more than one person, the person specified under Schedule I (f) of this Agreement shall draw the amount in stages as stipulated. SECURITY Security: The Security Provider agrees to create Security in such form and manner as may be required by the Lender to secure the principal amount of the Facility, together with Interest, Additional Interest, costs, charges, expenses etc. due and payable by the Borrower to the Lender. Additional Security: In the event the Security furnished by the Security Provider is found to be insufficient/incorrect in value to the Indebtedness, the Borrower shall be directed to furnish Additional Security as may be required by the Lender. Notwithstanding the above, in the event the Additional Security furnished by the Security Provider is subsequently found to be of inferior value to that as declared by the Borrower in the Facility Application, the Facility may be recalled or repayment of the Facility may be accelerated by the Lender with immediate effect. The Lender shall have the absolute right to decide whether or not it will accept as security for the purpose of the Facility any goods, book-debts, movables and other assets offered from time to time to the Lender by the Borrower. The Lender shall be at liberty at its sole discretion at any time without previous notice and without assigning any reason whatsoever to cease to accept the Security from the Security Provider and/or to cease making advance there against. REPAYMENT OF LOAN The Borrower agrees to repay the loan as specified in Schedule II (a) of this Agreement. The Borrower further agrees to pay Interest for a full six (6) months, if the loan is closed before 6 months from the date of disbursement. DUE DATE OF INSTALLMENT The due date of installment shall correspond to the date of disbursement as per the periodicity (i.e. monthly/quarterly/half yearly/yearly, as the case may be). However, the Lender shall, at its sole discretion, have right to fix the due date of installment, if he so desires. LENDER'S RIGHT TO REFIX INSTALMENT AMOUNT The Borrower agrees that, on account of upward revision of Interest or for any other reason, without giving any reasons to the Borrower, the Lender will have absolute liberty and discretion to refix the amount of the installment, and, in that event, the Borrower shall be liable to repay the loan with revised Interest at such revised installment, or the Lender may, at its sole and absolute discretion, extend the period of repayment. In the event of any amendment/alteration to the amount of installment and/or the number of installments on account of the above reasons, then the same shall be deemed to have been substituted here in this Agreement. 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Responsibility Although this Agreement may be signed below by more than one person, Borrower understands that both parties are individuals responsible for paying back the full amount. Breakdown of Loan Amount of Loan: Other (Describe): Amount Financed: Finance Charge: Total of Payments: Annual Rate: Repayment Borrower will repay the amount of this note in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Borrower has the right to prepay the whole outstanding amount at any time","Loan Agreement","2","https://templates.business-in-a-box.com/imgs/1000px/loan-agreement-D417.png","https://templates.business-in-a-box.com/imgs/250px/417.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#417.xml",{"title":95,"description":6},"loan agreement",[97,99,102],{"label":33,"url":98},"finance-accounting",{"label":100,"url":101},"Business Loans","business-loan",{"label":100,"url":101},"/template/loan-agreement-D417",{"description":105,"descriptionCustom":6,"label":106,"pages":107,"size":108,"extension":10,"preview":109,"thumb":110,"svgFrame":111,"seoMetadata":112,"parents":113,"keywords":119,"url":120},"PROMISSORY NOTE This Promissory Note (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender, at its principal office located at [ADDRESS], or at such other place that is designated in writing by the holder hereof, the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. If all or any portion of any payment due hereunder is not received by the Lender within [NUMBER] calendar days after the date when such payment is due, Borrower shall pay a late charge equal to [%] of such payment, such late charge to be immediately due and payable without demand by Lender. Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding, (ii) all interest accrued to the date of such prepayment, (iii) all interest calculated through the Maturity Date, and (iv) any late charge or charges then due and owing. If any payment under this Note is not paid in full by the [DAY] of any month during the term hereof or if the entire amount due as represented by this Note is not paid in full on or before the Maturity Date, or should default be made in the performance or observation of any of the terms, covenants, or conditions contained in the Loan Documents, or if any representation or warranty contained in the Loan Documents is breached or is or becomes untrue, this Note shall be in default, and the entire principal amount outstanding hereunder, accrued interest thereon, all late charges, if any, and any and all other charges due hereunder, shall, at Lender's option, immediately become due and payable, without further notice, the giving of such notice being expressly waived by the Borrower","Promissory Note","3",39,"https://templates.business-in-a-box.com/imgs/1000px/promissory-note-D434.png","https://templates.business-in-a-box.com/imgs/250px/434.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#434.xml",{"title":6,"description":6},[114,115,116],{"label":33,"url":98},{"label":100,"url":101},{"label":117,"url":118},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":122,"descriptionCustom":6,"label":123,"pages":90,"size":9,"extension":10,"preview":124,"thumb":125,"svgFrame":126,"seoMetadata":127,"parents":129,"keywords":128,"url":135},"PERSONAL GUARANTEE This Personal Guarantee (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME] (the \"Guarantor\"), an individual with his main address located at: [YOUR COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Second Party\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] I, [NAME OF GUARANTOR], residing at [COMPLETE ADDRESS], hereby personally and solidarity guarantee all of the obligations of [YOUR COMPANY NAME] and agree to be bound solidarity with [YOUR COMPANY NAME] for the prompt performance of [YOUR COMPANY NAME]'s obligations under that certain [SPECIFY] Agreement dated [DATE] (the \"Agreement\") between [YOUR COMPANY NAME] and [COMPANY NAME], including without limitation the payment of all goods, wares and merchandise as [YOUR COMPANY NAME] may from time to time select and purchase on credit from [COMPANY NAME], and hereby expressly renounce to the benefits of division and discussion. Furthermore, I agree that waive may extend the time for payment of any amounts owing to it by waive and/or may waive any default by waive without it in any way lessening or limiting my liability hereunder. Notwithstanding the foregoing, my guarantee hereunder to pay any and all amounts owing by [YOUR COMPANY NAME] to [COMPANY NAME] shall be limited to the sum of [AMOUNT] OR [%] of such outstanding amount.","Personal Guarantee","https://templates.business-in-a-box.com/imgs/1000px/personal-guarantee-D405.png","https://templates.business-in-a-box.com/imgs/250px/405.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#405.xml",{"title":128,"description":6},"personal guarantee",[130,131,132],{"label":33,"url":98},{"label":100,"url":101},{"label":133,"url":134},"Guaranties & Collateral","guaranties-collateral","/template/personal-guarantee-D405",{"description":137,"descriptionCustom":6,"label":138,"pages":107,"size":9,"extension":10,"preview":139,"thumb":140,"svgFrame":141,"seoMetadata":142,"parents":144,"keywords":143,"url":150},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":143,"description":6},"non disclosure agreement nda",[145,147],{"label":18,"url":146},"business-legal-agreements",{"label":148,"url":149},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":152,"descriptionCustom":6,"label":153,"pages":154,"size":155,"extension":10,"preview":156,"thumb":157,"svgFrame":158,"seoMetadata":159,"parents":160,"keywords":163,"url":164},"SECURITY AGREEMENT This Security Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [SECURED PARTY NAME] (the \" Secured Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Debtor\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] For value received, the undersigned Debtor, promises to pay to the order of [name], together with any other holder of this note (\"Secured Party\"), [amount], with interest at the rate of [%] per annum. Payment shall be made in successive equal monthly installments of [amount]. Each such Installment is payable on the [day] of each month, commencing on [date]. Recitals WHEREAS, the Secured Party has extended to the Debtor a certain loan as evidenced by a certain promissory note, in the original principal amount equal to [amount] dated on even date herewith (the \"Note\"); and WHEREAS, the Debtor wishes to grant a first priority security interest in and to all of the Debtor's tangible and intangible personal property pursuant to the terms hereof; NOW, THEREFORE, for and in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto covenant and agree as follows: DEFINITIONS The following terms shall have the meanings herein specified unless the context otherwise requires. Such definitions shall be equally applicable to the singular and plural forms of the terms defined: \"Contracts\" shall mean all contracts between the Debtor and one or more additional parties. \"Contract Rights\" shall mean all rights of the Debtor (including, without limitation, all rights to payment) under each Contract. \"Copyrights\" shall mean any [country] copyright to which the Debtor now or hereafter has title, as well as any application for a [country] copyright hereafter made by the Debtor. \"Equipment\" shall mean any \"equipment,\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all machinery, equipment, furnishings, fixtures and vehicles now or hereafter owned by the Debtor and any and all additions, substitutions and replacements of, any of the foregoing, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto. \"General Intangibles\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Goods\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Inventory\" shall mean all raw materials, workinprocess, and finished inventory of the Debtor of every type or description and all documents of title covering such inventory, and shall specifically include all \"inventory\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by the Debtor. \"Marks\" shall mean any trademarks and service marks now held or hereafter acquired by the Debtor, which are registered in the [country] Patent and Trademark Office, as well as any unregistered marks used by the Debtor in the [COUNTRY] and trade dress, including logos and/or designs, in connection with which any of these registered or unregistered marks are used. \"Obligations\" shall mean: (i) all indebtedness, obligations and liabilities (including, without limitation, guarantees and other contingent liabilities) of the Debtor to the Secured Party, including but not limited to the Note; (ii) any and all sums advanced by the Secured Party in order to preserve the Collateral or preserve its security interest in the Collateral; and (iii) in the event of any proceeding for the collection or enforcement of any indebtedness, obligations or liabilities of the Debtor referred to in clause (i), after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing or realizing on the Collateral, or of any exercise by the Collateral Agent of its rights hereunder, together with reasonable attorneys' fees and court costs. \"Patents\" shall mean any [country] patent to which the Debtor now or hereafter has title, as well as any application for a [country] patent now or hereafter made by Debtor. \"Proceeds\" shall have the meaning assigned that term under the [law or code] as in effect in the State of [state/province] on the date hereof or under other relevant law and, in any event, shall include, but not be limited to, (i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Secured Party or the Debtor from time to time with respect to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and payable to the Debtor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority and (iii) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral. \"Receivables\" shall mean any \"account\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [STATE/PROVINCE], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all of the Debtor's rights to payment for goods sold or leased or services performed by the Debtor, whether now in existence or arising from time to time hereafter, including, without limitation, rights evidenced by an account, note, contract, security agreement, or other evidence of indebtedness or security, together with (i) all security pledged, assigned, hypothecated or granted to or held by the Debtor to secure the foregoing; (ii) all of the Debtor's right, title and interest in and to any goods, the sale of which gave rise thereto; (iii) all guarantees, endorsements and indemnifications on, or of, any of the foregoing; (iv) all powers of attorney for the execution of any evidence of indebtedness or security or other writing in connection therewith; (v) all books, records, ledger cards and invoices relating thereto; (vi) all evidences of the filing of financing statements and other statements and the registration of other instruments in connection therewith and amendments thereto, notices to other creditors or secured parties, and certificates from filing or other registration officers; (vii) all credit information, reports and memoranda relating thereto and (viii) all other writings related in any way to the foregoing. GRANT OF SECURITY INTEREST The Debtor does hereby grant to the Secured Party a continuing security interest of first priority in all of the right, title and interest of the Debtor in, to and under all of the following property whether now existing or hereafter created or arising: ","Security Agreement","10",96,"https://templates.business-in-a-box.com/imgs/1000px/security-agreement-D915.png","https://templates.business-in-a-box.com/imgs/250px/915.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#915.xml",{"title":6,"description":6},[161,162],{"label":18,"url":146},{"label":18,"url":146},"security agreement","/template/security-agreement-D915",{"description":166,"descriptionCustom":6,"label":167,"pages":107,"size":9,"extension":10,"preview":168,"thumb":169,"svgFrame":170,"seoMetadata":171,"parents":173,"keywords":176,"url":177},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: LETTER OF INTENT-ACQUISITION OF BUSINESS Dear [CONTACT NAME]: This letter (\"Letter of Intent\") sets forth the basic preliminary terms between the Buyer or his nominee and yourselves regarding the purchase of the [SPECIFY] business (the \"Business\") carried on by yourselves. Except as specifically set forth herein, this Letter of Intent shall not constitute an agreement between the parties and no agreement shall be deemed to exist until execution of a definitive purchase agreement. It is proposed that Buyer will acquire certain assets of the Business which Buyer believes to be necessary to the future of the Business, including the warehouse in [CITY/STATE] in which [COMPANY NAME] the Company has invested [AMOUNT] in cash and which has been financed by a mortgage loan of approximately [AMOUNT] granted by the [SPECIFY COMPANY] [CITY/STATE]. Buyer understands that the said warehouse has no other charges or liabilities affecting it other than the said mortgage loan. Buyer may either purchase the warehouse outright or enter into a lease-purchase or instalment transfer of ownership which is satisfactory to both parties. The gross purchase price for the said warehouse will be [AMOUNT]. Buyer may purchase or lease barrels and other equipment currently owned by the Company which are necessary to operate the Business, on a cash or instalment basis agreeable to both parties. The specific assets to be purchased and the amounts to be paid by Buyer in connection with this transaction remain to be negotiated by the parties. This Letter of Intent also evidences the intentions of the parties with respect to the following agreements: Buyer will enter into a [NUMBER]-year employment agreement with [COMPANY NAME], providing for the Company will be responsible for the purchase of [SPECIFY] for Buyer. The agreement will contain the customary terms and conditions found in employment agreements in similar transactions and will provide for the usual non-competition and non-solicitation covenants to be entered into by the Company in favour of Buyer. It is expressly understood that if the contemplated transaction is consummated, the aggregate amount of commission paid or payable to yourselves (net of reasonable expenses acceptable to Buyer) in respect of all purchases of [SPECIFY] made through you from the date of this Letter of Intent to the date of closing, with the exception of commissions earned on the [NUMBER] truckloads of [SPECIFY] to be delivered to Buyer during the week of [DATE] to [DATE], will be applied against remuneration payable to the Company in the first year of his employment agreement. If the contemplated transaction is not consummated, all such commissions paid or payable will be treated as commissions. Buyer will enter into a [NUMBER]-year employment agreement with [EMPLOYEE NAME], providing for the payment of a gross base salary of [ANNUAL SALARY] per year, to be paid weekly, subject to annual review. [EMPLOYEE NAME] will be President of the Business and the employment agreement will provide for health benefits, automobile, expenses and bonus arrangements","Letter of Intent_Acquisition of Business","https://templates.business-in-a-box.com/imgs/1000px/letter-of-intent_acquisition-of-business-D5197.png","https://templates.business-in-a-box.com/imgs/250px/5197.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#5197.xml",{"title":172,"description":6},"letter of intent_acquisition of business",[174,175],{"label":18,"url":146},{"label":18,"url":146},"letter intent_acquisition business","/template/letter-of-intent_acquisition-of-business-D5197",false,{"seo":180,"reviewer":191,"legal_disclaimer":195,"quick_facts":196,"at_a_glance":198,"personas":202,"variants":227,"glossary":252,"clauses":289,"how_to_fill":339,"common_mistakes":380,"faqs":405,"industries":433,"comparisons":450,"diy_vs_lawyer":465,"jurisdictions":478,"related_template_ids_curated":499,"schema":511,"classification":512},{"meta_title":181,"meta_description":182,"primary_keyword":183,"secondary_keywords":184},"Facility Agreement Template (Free Word)","Free facility agreement template for business lending arrangements. Covers loan amount, drawdown, interest, repayment, covenants, and events of default. Free Word and PDF download.","facility agreement template",[15,185,186,187,188,189,190],"facility agreement template word","loan facility agreement template","credit facility agreement","business loan agreement template","revolving credit facility agreement","term loan facility agreement",{"name":192,"credential":193,"reviewed_date":194},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":197,"legal_review_recommended":195,"signature_required":195,"notarization_required":178},"advanced",{"what_it_is":199,"when_you_need_it":200,"whats_inside":201},"A Facility Agreement is a legally binding contract between a lender and a borrower that sets out the full terms under which credit is made available — the facility limit, drawdown mechanics, interest rate, repayment schedule, financial covenants, security, and events of default. This free Word download gives businesses and lenders a structured, professionally formatted starting point they can edit online and export as PDF for execution.\n","Use it when a lender is extending a term loan, revolving credit line, or multi-draw facility to a business borrower and both parties need a single governing document that replaces informal letter agreements. It is also required by most corporate legal departments before any material credit arrangement is booked on a balance sheet.\n","Parties and facility limit, purpose of the facility, drawdown conditions, interest rate and margin, repayment and prepayment terms, financial and information covenants, security and guarantee provisions, representations and warranties, events of default, and governing law and jurisdiction.\n",[203,207,211,215,219,223],{"title":204,"use_case":205,"icon_asset_id":206},"CFOs and finance directors","Documenting a credit facility with a bank or institutional lender","persona-cfo",{"title":208,"use_case":209,"icon_asset_id":210},"Commercial lenders and banks","Issuing a term loan or revolving line to a business borrower","persona-lender",{"title":212,"use_case":213,"icon_asset_id":214},"Private equity and debt fund managers","Structuring a leveraged or acquisition financing facility","persona-investor",{"title":216,"use_case":217,"icon_asset_id":218},"Small business owners","Formalizing a credit arrangement with a non-bank lender or investor","persona-small-business-owner",{"title":220,"use_case":221,"icon_asset_id":222},"In-house legal counsel","Reviewing and negotiating facility terms before board approval","persona-legal-counsel",{"title":224,"use_case":225,"icon_asset_id":226},"Startup founders","Setting up a venture debt or working capital facility alongside equity funding","persona-startup-founder",[228,232,236,239,242,246,249],{"situation":229,"recommended_template":230,"slug":231},"Lending a fixed lump sum repaid over a set schedule","Term Loan Facility Agreement","facility-agreement-D13269",{"situation":233,"recommended_template":234,"slug":235},"Providing a revolving credit line the borrower can draw and repay repeatedly","Revolving Credit Facility Agreement","revolving-credit-agreement-D14051",{"situation":237,"recommended_template":238,"slug":231},"Funding an acquisition or leveraged buyout","Acquisition Finance Facility Agreement",{"situation":240,"recommended_template":241,"slug":231},"Providing short-term working capital between cash-flow cycles","Working Capital Facility Agreement",{"situation":243,"recommended_template":244,"slug":245},"Lending to an individual rather than a corporate entity","Personal Loan Agreement","loan-agreement-D417",{"situation":247,"recommended_template":248,"slug":245},"A simple one-off loan between two businesses without revolving mechanics","Business Loan Agreement",{"situation":250,"recommended_template":251,"slug":245},"A short-term bridge facility pending a refinancing or asset sale","Bridge Loan Agreement",[253,256,259,262,265,268,271,274,277,280,283,286],{"term":254,"definition":255},"Facility Limit","The maximum aggregate principal amount the lender commits to make available to the borrower under the agreement.",{"term":257,"definition":258},"Drawdown","A request by the borrower to utilise all or part of the available facility, subject to conditions precedent being satisfied.",{"term":260,"definition":261},"Commitment Period","The period during which the borrower may submit drawdown requests; undrawn amounts typically lapse or incur a commitment fee after this period.",{"term":263,"definition":264},"Margin","The percentage added to a reference rate (e.g., SOFR or SONIA) to arrive at the total interest rate payable on outstanding drawings.",{"term":266,"definition":267},"Financial Covenant","A contractual test — such as minimum interest cover or maximum leverage — that the borrower must satisfy on a regular basis, typically quarterly.",{"term":269,"definition":270},"Event of Default","A defined circumstance — such as missed payment, covenant breach, or insolvency — that entitles the lender to accelerate repayment and enforce security.",{"term":272,"definition":273},"Acceleration","The lender's right, following an event of default, to declare all outstanding amounts immediately due and payable rather than waiting for the scheduled repayment date.",{"term":275,"definition":276},"Representations and Warranties","Factual statements made by the borrower at signing — and often repeated on each drawdown — confirming legal capacity, no litigation, and accuracy of financial statements.",{"term":278,"definition":279},"Conditions Precedent","Documents and confirmations the borrower must deliver to the lender before the first drawdown is permitted — typically constitutional documents, board resolutions, and legal opinions.",{"term":281,"definition":282},"Security Package","The collateral arrangements supporting the facility — which may include fixed and floating charges over assets, share pledges, or personal guarantees.",{"term":284,"definition":285},"Prepayment","Early repayment of all or part of the outstanding facility, which may attract a prepayment fee or require a minimum notice period.",{"term":287,"definition":288},"Commitment Fee","A fee charged on the undrawn portion of the facility during the commitment period, compensating the lender for holding capital available.",[290,295,300,305,310,315,320,324,329,334],{"name":291,"plain_english":292,"sample_language":293,"common_mistake":294},"Parties, Facility Type, and Facility Limit","Identifies the lender and borrower as legal entities, labels the type of facility (term, revolving, or multi-draw), and states the maximum committed amount.","This Facility Agreement is entered into on [DATE] between [LENDER LEGAL NAME] ('Lender') and [BORROWER LEGAL NAME], a [STATE/JURISDICTION] [ENTITY TYPE] ('Borrower'). The Lender agrees to make available to the Borrower a [TYPE] facility in an aggregate principal amount not exceeding [CURRENCY][AMOUNT] ('Facility Limit').","Using a trade name instead of the borrower's registered legal entity. If the borrowing entity name does not match the company's constitutional documents, security registrations and enforcement steps may be challenged.",{"name":296,"plain_english":297,"sample_language":298,"common_mistake":299},"Purpose","Restricts how the borrower may use the drawn funds to a defined purpose — such as working capital, capital expenditure, or a specific acquisition.","The Borrower shall apply all amounts borrowed under this Agreement solely for [PERMITTED PURPOSE, e.g., general working capital purposes / acquisition of [TARGET NAME]]. The Lender is not obliged to monitor the application of drawn funds.","Leaving the purpose clause blank or writing 'general corporate purposes' when the facility is earmarked for a specific use. An undefined purpose weakens the lender's ability to call a default if funds are misapplied.",{"name":301,"plain_english":302,"sample_language":303,"common_mistake":304},"Drawdown Conditions and Mechanics","Sets out how the borrower requests funds, the minimum notice period, minimum drawdown amounts, and the conditions that must be satisfied before the lender is obliged to fund.","The Borrower may submit a Drawdown Notice to the Lender no later than [X] Business Days prior to the proposed Utilisation Date. Each drawdown shall be in a minimum amount of [CURRENCY][MINIMUM AMOUNT]. The Lender's obligation to fund is conditional upon: (a) no Event of Default subsisting; (b) all Conditions Precedent being satisfied; and (c) the Representations being true and correct.","Failing to list all conditions precedent explicitly. Lenders who fund before receiving board resolutions or executed security documents may lose priority over other creditors.",{"name":306,"plain_english":307,"sample_language":308,"common_mistake":309},"Interest Rate, Margin, and Payment Dates","States whether the rate is fixed or floating, identifies the reference rate, sets the margin above that rate, and specifies when interest must be paid.","Interest on each Drawing accrues at a rate per annum equal to [SOFR / SONIA / fixed rate of X]% plus the Margin of [X]% per annum, calculated on a [365/360]-day basis. Interest is payable on the last Business Day of each [monthly / quarterly] Interest Period.","Referencing LIBOR without a replacement rate fallback. LIBOR was discontinued in 2023; agreements that do not include SOFR (US) or SONIA (UK) fallback language create an unresolvable rate calculation dispute.",{"name":311,"plain_english":312,"sample_language":313,"common_mistake":314},"Repayment and Prepayment","Defines the amortisation schedule or bullet repayment date, and states the borrower's right or obligation to prepay early, including any associated fees.","The Borrower shall repay the outstanding principal in [equal quarterly instalments of [CURRENCY][AMOUNT] / a single bullet payment on the Maturity Date of [DATE]]. The Borrower may prepay all or part of any Drawing on [X] Business Days' prior written notice, subject to a prepayment fee of [X]% of the amount prepaid if prepayment occurs within [X] months of the first Utilisation Date.","Omitting a prepayment fee provision for fixed-rate facilities. Without one, the lender has no compensation for reinvestment risk when the borrower repays early at a lower rate environment.",{"name":316,"plain_english":317,"sample_language":318,"common_mistake":319},"Financial Covenants","Sets quantitative tests the borrower must meet at each test date — typically covering leverage, interest cover, and minimum liquidity — with the consequence of breach being an event of default.","The Borrower shall ensure that, as at each Test Date: (a) the ratio of Total Net Debt to EBITDA shall not exceed [X]:1; (b) the ratio of EBITDA to Net Finance Charges shall not be less than [X]:1; and (c) unrestricted cash and cash equivalents shall not fall below [CURRENCY][AMOUNT].","Setting covenant levels too tight relative to the borrower's historical performance, leaving no headroom. A covenant breach triggers a technical default even when the borrower is fully solvent and servicing debt on time.",{"name":275,"plain_english":321,"sample_language":322,"common_mistake":323},"A set of factual statements by the borrower confirming legal capacity, valid authority, accuracy of financial statements, no undisclosed litigation, and compliance with laws — typically repeated on each drawdown.","The Borrower represents and warrants to the Lender on the date of this Agreement and on each Utilisation Date that: (a) it is duly incorporated and validly existing; (b) it has full power and authority to enter into and perform this Agreement; (c) its most recent audited financial statements fairly present its financial position; and (d) no litigation, arbitration, or administrative proceeding is pending or threatened that would have a Material Adverse Effect.","Borrowers signing representations without disclosing known exceptions. An undisclosed matter that later surfaces can be treated as a misrepresentation and trigger an event of default retroactively.",{"name":325,"plain_english":326,"sample_language":327,"common_mistake":328},"Events of Default and Acceleration","Lists the circumstances that entitle the lender to cancel undrawn commitments, demand immediate repayment, and enforce security — including payment default, covenant breach, insolvency, and cross-default.","Each of the following constitutes an Event of Default: (a) the Borrower fails to pay any amount due within [X] Business Days of its due date; (b) any Financial Covenant is breached and not remedied within [X] days; (c) the Borrower becomes insolvent or enters any insolvency process; (d) any other Financial Indebtedness of the Borrower exceeding [CURRENCY][THRESHOLD] is accelerated (cross-default). Upon an Event of Default, the Lender may by written notice accelerate all outstanding amounts.","No cure period for covenant breaches. An automatic-default trigger without any remedy window can cause otherwise-solvent borrowers to tip into insolvency unnecessarily, exposing the lender to reputational and legal risk.",{"name":330,"plain_english":331,"sample_language":332,"common_mistake":333},"Security and Guarantees","Identifies the collateral the borrower grants to secure repayment — such as a fixed and floating charge over assets, share pledge, or real property mortgage — and any guarantees from parent entities or principals.","As continuing security for its obligations under this Agreement, the Borrower shall, on or before the first Utilisation Date, grant in favour of the Lender: (a) a first-ranking fixed and floating charge over all its assets and undertaking; and (b) a share pledge over [X]% of the issued share capital of [SUBSIDIARY NAME]. [GUARANTOR NAME] shall execute the Guarantee in the form set out in Schedule [X].","Not registering the security interest within the required statutory timeframe. In most jurisdictions, failure to register within 21–30 days of creation renders the security void against a liquidator or other creditors.",{"name":335,"plain_english":336,"sample_language":337,"common_mistake":338},"Governing Law and Jurisdiction","Specifies which country's or state's law governs interpretation and enforcement, and in which courts disputes must be resolved.","This Agreement and any non-contractual obligations arising out of or in connection with it are governed by the laws of [GOVERNING LAW JURISDICTION]. Each party irrevocably submits to the [exclusive / non-exclusive] jurisdiction of the courts of [COURT JURISDICTION] to settle any dispute arising out of or in connection with this Agreement.","Selecting a governing law that has no operational nexus to either party. Enforcement courts in some jurisdictions will decline to apply foreign law on commercial lending terms, creating an unenforceable agreement in the very jurisdiction where assets are located.",[340,345,350,355,360,365,370,375],{"step":341,"title":342,"description":343,"tip":344},1,"Identify the parties with their full legal names","Enter the lender's and borrower's registered legal entity names exactly as they appear in their constitutional documents. Include registration numbers, jurisdiction of incorporation, and registered address for each party.","Cross-reference the borrower's company registry filing before execution — a name mismatch can invalidate security registrations filed in the borrower's name.",{"step":346,"title":347,"description":348,"tip":349},2,"Define the facility type, limit, and currency","Choose the facility type — term loan, revolving, or multi-draw — and state the maximum committed amount and the currency of denomination. If the facility is multicurrency, list each permitted currency.","For revolving facilities, also specify the minimum utilisation amount and the clean-down period (the number of days per year the facility must be fully repaid) to prevent permanent reliance on the line.",{"step":351,"title":352,"description":353,"tip":354},3,"Set the interest rate, margin, and reference rate","Choose a fixed rate or a floating reference rate (SOFR for USD, SONIA for GBP, €STR for EUR) plus a margin. State the interest calculation basis (Actual/365 or Actual/360) and the interest payment dates.","Include a rate fallback clause specifying what rate applies if the reference rate is unavailable or discontinued — omitting this is one of the most common errors in current facility agreements.",{"step":356,"title":357,"description":358,"tip":359},4,"Complete the drawdown mechanics and conditions precedent","Specify the notice period for drawdown requests, minimum drawdown amounts, and the full list of conditions precedent the borrower must satisfy before the first utilisation — board resolutions, constitutional documents, executed security, and legal opinions.","Attach conditions precedent as a numbered Schedule so each item can be checked off and initialled by the lender's legal team on completion.",{"step":361,"title":362,"description":363,"tip":364},5,"Draft the repayment schedule and prepayment terms","Enter the amortisation table or bullet repayment date, and state any prepayment fee, minimum prepayment amount, and the notice period required. For revolving facilities, confirm whether the commitment reduces permanently on each repayment.","For term loans, include a cash-sweep provision requiring the borrower to apply a percentage of excess cash flow to accelerated repayment — this protects the lender if profitability exceeds projections.",{"step":366,"title":367,"description":368,"tip":369},6,"Calibrate financial covenants against the borrower's financials","Set leverage, interest cover, and liquidity covenant levels based on the borrower's last two years of audited accounts and projected financials, with at least 15–20% headroom above current ratios.","Negotiate a covenant reset mechanism that allows levels to be reset once per year if the borrower's business changes materially — this reduces the risk of technical defaults that benefit neither party.",{"step":371,"title":372,"description":373,"tip":374},7,"Specify the security package and registration obligations","List every security document to be executed, including the party granting it and the assets covered. Note the jurisdiction-specific registration deadline for each instrument.","Build a security perfection checklist into the conditions precedent so no registration step is missed in the closing process.",{"step":376,"title":377,"description":378,"tip":379},8,"Confirm governing law and sign before first drawdown","Choose a governing law with a direct operational connection to at least one party. Both parties must sign before — or simultaneously with — the first drawdown; post-drawdown signature weakens enforceability of representations repeated at utilisation.","Use a digital execution platform that timestamps signing and stores the fully executed copy with both parties automatically.",[381,385,389,393,397,401],{"mistake":382,"why_it_matters":383,"fix":384},"Referencing LIBOR without a replacement rate fallback","LIBOR was permanently discontinued in June 2023. An agreement that references LIBOR with no fallback rate leaves the interest calculation mechanism void, making the entire interest clause unenforceable.","Replace all LIBOR references with the appropriate risk-free rate — SOFR for USD, SONIA for GBP, €STR for EUR — and include a fallback provision specifying the calculation method if the reference rate is temporarily unavailable.",{"mistake":386,"why_it_matters":387,"fix":388},"Failing to register security within the statutory window","In most jurisdictions, a charge or security interest that is not registered within the required period (21 days in the UK, 30 days in many US states) is void against a liquidator and unsecured creditors, leaving the lender with no priority.","Build security registration deadlines into a conditions precedent checklist and assign a responsible party — lender's counsel or the borrower's company secretary — with a confirmed completion date before the first drawdown is released.",{"mistake":390,"why_it_matters":391,"fix":392},"Setting financial covenants with no headroom","Covenant levels set at or near the borrower's current ratios are breached at the first quarter of underperformance, triggering a technical default even when the borrower is solvent and servicing all payments on time.","Set covenant levels with at least 15–20% headroom above the borrower's most recent audited ratios and negotiate a waiver or reset mechanism for material business changes.",{"mistake":394,"why_it_matters":395,"fix":396},"Omitting a cure period for events of default","An automatic-default clause with no remedy window can accelerate a facility and force insolvency for a borrower experiencing a temporary issue, exposing the lender to accusations of wrongful acceleration.","Include a grace period of at least 5 business days for payment defaults and 30 days for covenant breaches, with a right for the borrower to remedy before acceleration is triggered.",{"mistake":398,"why_it_matters":399,"fix":400},"Using a trade name instead of the borrower's registered entity name","Security registrations, court enforcement, and insolvency claims all require the exact registered legal name. A mismatch — even a single missing word — can invalidate the registration or allow the borrower to dispute the claim.","Verify the borrower's exact registered name against the relevant company registry before drafting, and include the registration number and jurisdiction in the parties clause.",{"mistake":402,"why_it_matters":403,"fix":404},"No cross-default provision","Without cross-default language, a borrower can default on a larger senior facility while continuing to draw on this facility, creating hidden credit exposure the lender cannot act on until an express default under this agreement occurs.","Include a cross-default clause that triggers an event of default if any other financial indebtedness above a defined threshold is accelerated or unpaid at maturity.",[406,409,412,415,418,421,424,427,430],{"question":407,"answer":408},"What is a facility agreement?","A facility agreement is a legally binding contract between a lender and a borrower that sets out the full terms on which credit is made available — including the maximum amount, drawdown mechanics, interest rate, repayment schedule, financial covenants, security, and events of default. It is the governing document for most commercial lending relationships, replacing informal letter agreements once a facility exceeds a material threshold or requires security.\n",{"question":410,"answer":411},"What is the difference between a facility agreement and a loan agreement?","The terms are often used interchangeably, but a facility agreement typically refers to a more structured arrangement that may permit multiple drawings over time — such as a revolving credit line or multi-draw term facility — rather than a single lump-sum disbursement. A simple loan agreement usually covers a one-time advance with a fixed repayment schedule. Facility agreements also tend to include more detailed covenant and security packages reflecting the ongoing nature of the credit relationship.\n",{"question":413,"answer":414},"What types of facility are covered by this template?","This template can be adapted for a term loan facility (fixed drawings repaid on a schedule), a revolving credit facility (drawn, repaid, and redrawn repeatedly up to the limit), or a multi-draw facility (multiple disbursements during a commitment period with a single repayment date). The drawdown mechanics, repayment, and commitment-fee clauses should be adjusted to match the facility type chosen.\n",{"question":416,"answer":417},"What are financial covenants and why do they matter?","Financial covenants are quantitative tests — such as maximum net debt-to-EBITDA leverage or minimum interest cover — that the borrower must pass at each test date, typically quarterly. They give the lender an early warning of deteriorating credit quality before a payment default occurs. A covenant breach is itself an event of default, giving the lender rights to accelerate or renegotiate terms even if the borrower is still making payments on time.\n",{"question":419,"answer":420},"Is a facility agreement legally required for business lending?","No statute requires a written facility agreement for every loan, but institutional lenders, private debt funds, and most sophisticated private lenders will not advance material credit without one. A written agreement is essential to enforce the security package, rely on representations, and accelerate on a covenant breach. Without it, the lender's claim is limited to the amount advanced with simple interest, and enforcing repayment requires litigation rather than contractual acceleration.\n",{"question":422,"answer":423},"What security is typically included in a facility agreement?","For corporate borrowers, lenders typically require a fixed and floating charge over all assets and undertaking, a share pledge over the borrower's subsidiaries, and sometimes a debenture over specific real property or intellectual property. Parent guarantees or personal guarantees from directors are common for smaller businesses or where the borrower's standalone credit quality is insufficient. The security package must be registered at the relevant company registry within the statutory window to be enforceable against third parties.\n",{"question":425,"answer":426},"What happens when an event of default occurs?","When an event of default occurs, the lender typically has the right to cancel any undrawn commitment, declare all outstanding principal and accrued interest immediately due and payable (acceleration), and enforce any security granted. Most agreements include grace periods — commonly 5 business days for payment defaults and 20–30 days for covenant breaches — before the lender can exercise these rights. The borrower may also seek a waiver or covenant reset from the lender if the breach is technical rather than a sign of genuine credit deterioration.\n",{"question":428,"answer":429},"Do I need a lawyer to complete a facility agreement?","For straightforward bilateral term loans between two domestic parties, a high-quality template reviewed by a finance lawyer is usually sufficient. Legal advice is strongly recommended when the facility involves security registration in multiple jurisdictions, cross-border parties, a leveraged acquisition structure, or complex covenant packages. The cost of a 1–3 hour legal review ($500–$1,500) is small relative to the risk of an unenforceable security interest or an acceleration clause that cannot withstand court scrutiny.\n",{"question":431,"answer":432},"What reference rate should I use now that LIBOR has been discontinued?","For USD facilities, use the Secured Overnight Financing Rate (SOFR), published daily by the New York Federal Reserve. For GBP facilities, use SONIA (Sterling Overnight Index Average), published by the Bank of England. For EUR facilities, use €STR (Euro Short-Term Rate), published by the European Central Bank. Each rate is compounded in arrears over the interest period using a standard compounding convention; the template should specify the compounding method and include a fallback for days when the reference rate is not published.\n",[434,438,442,446],{"industry":435,"icon_asset_id":436,"specifics":437},"Financial Services","industry-fintech","Bilateral and syndicated facility agreements are the primary lending instrument; financial covenants reference regulatory capital ratios and liquidity coverage requirements alongside standard leverage tests.",{"industry":439,"icon_asset_id":440,"specifics":441},"Real Estate and Construction","industry-construction","Development finance facilities include drawdown tranches tied to construction milestones, loan-to-value ratio covenants, and fixed and floating charges over the development site and receivables.",{"industry":443,"icon_asset_id":444,"specifics":445},"Manufacturing","industry-manufacturing","Working capital revolvers secured against inventory and receivables; borrowing-base mechanics allow available credit to fluctuate with eligible asset values on a monthly calculation.",{"industry":447,"icon_asset_id":448,"specifics":449},"Technology / SaaS","industry-saas","Venture debt and revenue-based facilities use MRR multiples as the borrowing base and include IP security provisions covering software, patents, and domain names as part of the collateral package.",[451,454,458,461],{"vs":89,"vs_template_id":452,"summary":453},"loan-agreement-D182","A loan agreement governs a single lump-sum advance disbursed at signing and repaid on a fixed schedule. A facility agreement is broader — it may permit multiple drawings over a commitment period, revolving access, and more detailed covenant and security packages. For a straightforward one-time loan, a loan agreement is simpler; for ongoing credit access, a facility agreement is the appropriate instrument.",{"vs":455,"vs_template_id":456,"summary":457},"Line of Credit Agreement","D{LINE_OF_CREDIT_ID}","A line of credit agreement is the consumer or small-business equivalent of a revolving facility — it permits flexible drawings up to a limit but typically lacks the detailed financial covenants, security package, and representations block that a facility agreement contains. Facility agreements are used in corporate finance contexts where the lender requires enforceable covenants and registered security; lines of credit suit simpler, unsecured arrangements.",{"vs":106,"vs_template_id":459,"summary":460},"promissory-note-D186","A promissory note is a short-form unconditional promise to repay a fixed sum with interest — typically one to two pages with no covenants, conditions precedent, or security provisions. It is suitable for simple intercompany loans or informal arrangements. A facility agreement is a full-form lending document appropriate when the lender needs ongoing comfort through covenants and security. In some transactions, a promissory note is issued as a standalone drawdown instrument under an overarching facility agreement.",{"vs":462,"vs_template_id":463,"summary":464},"Mortgage Agreement","D{MORTGAGE_AGREEMENT_ID}","A mortgage agreement is a specific security instrument over real property, creating the lender's charge over land. A facility agreement is the primary lending contract that governs the credit terms and typically requires a mortgage as part of the security package rather than substituting for it. The two documents are used together when property is offered as collateral — the facility agreement governs repayment and covenants while the mortgage agreement creates and registers the security interest.",{"use_template":466,"template_plus_review":470,"custom_drafted":474},{"best_for":467,"cost":468,"time":469},"Straightforward bilateral term loans or revolving facilities between domestic parties with simple security","Free","2–4 hours",{"best_for":471,"cost":472,"time":473},"Facilities with a security package requiring registration, financial covenants, or cross-border elements","$500–$1,500 for a finance lawyer review","2–5 days",{"best_for":475,"cost":476,"time":477},"Syndicated facilities, leveraged acquisitions, multi-jurisdiction security, or regulated lending structures","$5,000–$25,000+","2–6 weeks",[479,484,489,494],{"code":480,"name":481,"flag_asset_id":482,"note":483},"us","United States","flag-us","US facility agreements are governed by either New York or Delaware law for most commercial transactions. Article 9 of the UCC governs security interests over personal property; a UCC-1 financing statement must be filed with the relevant Secretary of State, typically within 20 days of security creation. SOFR has replaced USD LIBOR as the standard reference rate. State usury laws cap interest rates for certain borrower types — confirm the applicable ceiling before setting the margin.",{"code":485,"name":486,"flag_asset_id":487,"note":488},"ca","Canada","flag-ca","Canadian facility agreements are most commonly governed by Ontario or British Columbia law. Personal Property Security Act (PPSA) filings are required to perfect security interests over moveable assets in each province where the borrower carries on business. Quebec's Civil Code creates a distinct security regime — a hypothec replaces the common-law charge and must be published at the Registre des droits personnels et réels mobiliers (RDPRM). CORRA (Canadian Overnight Repo Rate Average) is the replacement for CDOR as the standard floating reference rate.",{"code":490,"name":491,"flag_asset_id":492,"note":493},"uk","United Kingdom","flag-uk","English law is the dominant governing law for European and international facility agreements, reflecting the depth of UK finance courts. Charges over UK company assets must be registered at Companies House within 21 days of creation under the Companies Act 2006; failure to register renders the charge void against a liquidator. SONIA has replaced GBP LIBOR. The Loan Market Association (LMA) publishes widely used standard form facility agreements that practitioners adapt; this template follows LMA structural conventions.",{"code":495,"name":496,"flag_asset_id":497,"note":498},"eu","European Union","flag-eu","EU facility agreements are typically governed by the law of the member state where the borrower is domiciled — German, French, or Dutch law are common for large corporates. The European Leveraged Finance Association (ELFA) publishes guidance aligned with LMA standards. €STR replaces EURIBOR as the overnight reference rate, though term EURIBOR remains in use for many term facilities. GDPR compliance is relevant where the agreement requires ongoing sharing of financial and management information between parties in different member states.",[245,500,501,502,503,504,505,506,507,508,509,510],"promissory-note-D434","personal-guarantee-D405","non-disclosure-agreement-nda-D12692","security-agreement-D915","letter-of-intent_acquisition-of-business-D5197","term-sheet-D473","shareholders-agreement-D1016","credit-note-D13639","purchase-agreement-D12670","partnership-agreement-D163","operating-agreement-D12798",{"emit_how_to":195,"emit_defined_term":195},{"primary_folder":98,"secondary_folder":513,"document_type":514,"industry":515,"business_stage":516,"tags":517,"confidence":523},"business-financing-and-loans","agreement","general","all-stages",[518,519,520,521,522],"loan","finance","facility-agreement","credit","lender-borrower",0.95,"\u003Ch2>What is a Facility Agreement?\u003C/h2>\n\u003Cp>A \u003Cstrong>Facility Agreement\u003C/strong> is a legally binding contract between a lender and a borrower that governs the full terms on which credit is made available to a business — covering the maximum committed amount, the mechanics for drawing and repaying funds, the interest rate and margin, financial covenants the borrower must maintain, the security package that backs the lending, and the events that entitle the lender to demand immediate repayment. Unlike a simple promissory note, a facility agreement is a comprehensive lending instrument designed for ongoing or multi-draw credit arrangements where the lender requires enforceable covenants and registered collateral throughout the life of the facility. It is the standard governing document used by banks, private debt funds, and institutional lenders for corporate credit relationships of any material size.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Extending or accepting credit without a formal facility agreement exposes both parties to avoidable risk at every stage of the relationship. For lenders, the absence of a written agreement means no enforceable covenants to detect credit deterioration early, no security registration to establish priority over other creditors, and no acceleration mechanism to demand repayment if the borrower's financial position weakens. For borrowers, an undocumented facility leaves repayment terms, interest rates, and drawdown rights entirely at the lender's discretion — with no contractual protection against unilateral changes. A properly executed facility agreement, with security registered within the statutory window, creates a clear legal framework that protects both parties, satisfies the documentation requirements of auditors and regulators, and provides an enforceable basis for resolving disputes without litigation. This template gives you that framework in a professionally structured Word document you can tailor to your specific transaction and execute with confidence.\u003C/p>\n",1781185968711]