Document background
The Facility Agreement Loan is a fundamental document in Australian commercial lending practice, used to formalize the provision of financial accommodation from lenders to borrowers. It is essential for both corporate and institutional lending arrangements, ranging from simple bilateral facilities to complex syndicated loans. The agreement comprehensively addresses all aspects of the lending relationship, including facility terms, security arrangements, representations, covenants, and enforcement rights. It must comply with Australian banking and financial services regulations, including ASIC requirements and state-specific legislation. This document is particularly crucial for establishing legally enforceable lending arrangements while ensuring regulatory compliance and risk management. It serves as the primary reference point for all parties throughout the life of the facility, from drawdown to final repayment.
