Document background
The Revolving Loan Agreement is a sophisticated financing document used when a borrower requires flexible access to credit over an extended period. This agreement, structured under Canadian law, enables businesses to draw down funds as needed up to a predetermined limit, repay them, and reborrow again during the facility term. It's particularly useful for companies with cyclical business operations or varying working capital needs. The document includes comprehensive provisions covering facility terms, security arrangements (if applicable), borrowing mechanics, covenant packages, and default scenarios. The agreement must comply with Canadian federal banking regulations, including the Bank Act and Interest Act, as well as relevant provincial legislation. It's commonly used for working capital financing, acquisition financing, or general corporate purposes.
