Document background
The Term Loan Credit Agreement is a fundamental financing document used when a borrower requires a fixed-term loan facility with specified repayment terms. This agreement, governed by Canadian law, is essential for both commercial and corporate lending transactions where funds are disbursed in a lump sum or in tranches. It contains comprehensive provisions addressing loan mechanics, security arrangements, representations, warranties, and covenants specific to Canadian federal and provincial requirements. The document is structured to comply with Canadian banking regulations, including the Bank Act and provincial security legislation, while providing clear mechanisms for enforcement and remedies. It's particularly relevant for transactions requiring detailed financial covenants, security arrangements, and specific purpose financing such as acquisitions, capital expenditure, or business expansion.
