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Financing Contract Agreement
"I need a Financing Contract Agreement for a Rs. 50 crore term loan from HDFC Bank to my manufacturing company, with quarterly repayments over 5 years starting March 2025, secured by company assets and personal guarantee."
1. Parties: Identifies and defines the lender, borrower, and any guarantors with their complete legal details
2. Background: Sets out the context of the financing arrangement and purpose of the loan
3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules
4. Facility Amount and Purpose: Specifies the loan amount, type of facility, and permitted use of funds
5. Conditions Precedent: Lists conditions that must be satisfied before the facility becomes available
6. Drawdown Mechanics: Details the process and requirements for drawing down the loan
7. Interest and Fees: Specifies interest rates, calculation methods, and all applicable fees
8. Repayment Terms: Sets out repayment schedule, prepayment provisions, and payment mechanics
9. Representations and Warranties: Contains statements of fact and assurances given by the borrower
10. Covenants: Details positive and negative obligations of the borrower during the loan term
11. Events of Default: Lists circumstances that constitute default and their consequences
12. Security: Describes the security structure and enforcement rights
13. Indemnities: Sets out the borrower's indemnification obligations
14. Costs and Expenses: Allocates responsibility for transaction costs and ongoing expenses
15. Notices: Specifies how formal communications between parties should be made
16. Governing Law and Jurisdiction: Specifies Indian law as governing law and jurisdiction for disputes
17. Boilerplate Provisions: Standard clauses including severability, amendments, counterparts, etc.
1. Guarantees: Required when third-party guarantees are part of the security structure
2. Syndication Provisions: Needed for syndicated loans involving multiple lenders
3. Assignment and Transfer: Detailed provisions for when either party may need rights to assign the agreement
4. Currency Provisions: Required for multi-currency facilities or foreign currency loans
5. Insurance Requirements: Detailed insurance obligations when specific insurance coverage is required
6. Security Trustee Provisions: Needed when a security trustee structure is used
7. Intercreditor Provisions: Required when multiple creditors are involved with different priorities
8. Force Majeure: Specific provisions for handling unforeseen circumstances affecting loan performance
1. Schedule 1 - Definitions: Detailed list of defined terms used in the agreement
2. Schedule 2 - Conditions Precedent Documents: List of all documents required before facility availability
3. Schedule 3 - Drawdown Notice Format: Template for drawdown requests
4. Schedule 4 - Repayment Schedule: Detailed amortization schedule if applicable
5. Schedule 5 - Security Documents: List and copies of all security documents
6. Schedule 6 - Financial Covenants: Detailed financial ratios and calculations
7. Schedule 7 - Fee Schedule: Detailed breakdown of all fees and charges
8. Appendix A - Form of Compliance Certificate: Template for periodic compliance reporting
9. Appendix B - Security Perfection Requirements: Checklist of security registration and perfection requirements
10. Appendix C - Know Your Customer Requirements: List of required KYC documentation
Authors
Account Bank
Additional Interest
Affiliate
Applicable Law
Applicable Margin
Authorisation
Authority
Available Commitment
Banking Day
Base Rate
Borrower
Business Day
Change of Control
Charged Assets
Commitment
Compliance Certificate
Conditions Precedent
Confidential Information
Control
Default
Default Interest
Default Rate
Drawdown
Drawdown Date
Drawdown Notice
Encumbrance
Event of Default
Facility
Facility Amount
Facility Documents
Facility Period
Financial Indebtedness
Financial Statements
Financial Year
Force Majeure Event
Group
Guarantee
Guarantor
Increased Costs
Indebtedness
Interest Payment Date
Interest Period
Interest Rate
Lender
Material Adverse Effect
Maturity Date
Obligor
Outstanding Amount
Potential Event of Default
Prepayment
Principal Outstanding
Project
Purpose
Quarter
RBI
Reference Bank
Repayment Date
Repayment Installment
Repayment Schedule
Security
Security Documents
Security Interest
Security Provider
Subsidiary
Tax
Transaction Documents
Utilisation
Representations and Warranties
Facility Terms
Interest and Fees
Repayment
Security
Drawdown
Events of Default
Covenants
Information Undertakings
Financial Covenants
Negative Pledge
Assignment and Transfer
Set-off
Indemnification
Costs and Expenses
Force Majeure
Confidentiality
Notices
Amendments and Waivers
Severability
Governing Law
Dispute Resolution
Jurisdiction
Entire Agreement
Counterparts
Electronic Execution
Change of Control
Tax Provisions
Currency Provisions
Registration and Stamping
Default Interest
Acceleration
Cross Default
Material Adverse Change
Insurance
Security Enforcement
Guarantee
Subordination
Anti-corruption
Compliance with Laws
Banking & Financial Services
Manufacturing
Real Estate & Construction
Infrastructure
Technology & Software
Healthcare
Agriculture
Retail & Consumer Goods
Energy & Utilities
Telecommunications
Education
Transportation & Logistics
Hospitality & Tourism
Legal
Finance
Treasury
Compliance
Risk Management
Credit
Corporate Affairs
Operations
Company Secretarial
Banking Operations
Chief Financial Officer
Finance Director
Treasury Manager
Legal Counsel
Corporate Lawyer
Compliance Officer
Risk Manager
Credit Manager
Finance Manager
Company Secretary
Investment Officer
Relationship Manager
Due Diligence Officer
Financial Controller
Banking Operations Manager
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