Secured Line Of Credit Agreement Template for Australia

The Secured Line of Credit Agreement is a fundamental financing document used in Australian commercial lending practices when a borrower requires ongoing access to credit secured against specific assets. This agreement is particularly useful for businesses needing flexible working capital solutions or individuals seeking secured credit facilities. The document establishes the credit limit, security arrangements, drawdown mechanisms, and repayment terms, while ensuring compliance with Australian financial services regulations, including the National Consumer Credit Protection Act 2009 and Personal Property Securities Act 2009. It provides certainty for both lender and borrower by clearly defining their rights and obligations, security enforcement procedures, and risk mitigation measures. The agreement is adaptable to various security types and can be customized based on the credit assessment and risk profile of the borrower while maintaining regulatory compliance.

1. Parties: Identifies and provides full details of the lender and borrower

2. Background: Sets out the context of the agreement, including the borrower's request for credit facility and the lender's agreement to provide it

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. The Facility: Details of the credit facility including limit, purpose, availability period, and drawdown conditions

5. Security: Description of the security arrangements, assets covered, and registration requirements

6. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

7. Drawdown Mechanics: Procedures and requirements for drawing down the facility

8. Interest and Fees: Interest calculation method, rates, payment periods, and applicable fees

9. Repayment Terms: Terms for repayment including minimum payments, prepayment provisions, and account maintenance

10. Representations and Warranties: Statements of fact and assurances given by the borrower

11. Borrower Covenants: Ongoing obligations of the borrower including financial covenants and reporting requirements

12. Events of Default: Circumstances constituting default and consequences

13. Enforcement: Lender's rights and remedies upon default

14. General Provisions: Standard contract terms including notices, amendments, assignments, and governing law