Master Asset Finance Agreement Template for India

The Master Asset Finance Agreement serves as a foundational document for establishing an ongoing financing relationship between financial institutions and borrowers in India. It is typically used when parties anticipate multiple asset financing transactions over time, avoiding the need to negotiate separate agreements for each transaction. The agreement incorporates key requirements under Indian banking regulations, including RBI guidelines, SARFAESI Act provisions, and security creation requirements. It covers essential elements such as facility terms, drawdown procedures, security structures, asset maintenance requirements, and enforcement mechanisms, while providing flexibility to accommodate various asset types and financing structures. This master agreement approach streamlines documentation requirements and ensures consistency across multiple transactions while maintaining compliance with Indian legal and regulatory requirements.

1. Parties: Identification of the finance provider and the borrower/customer, including registration details and addresses

2. Background: Context of the agreement, relationship between parties, and general purpose of the facility

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation

4. Facility and Purpose: Details of the master facility, including nature, purpose, and overall limits

5. Conditions Precedent: Prerequisites that must be satisfied before any utilization under the facility

6. Drawdown Mechanism: Process and requirements for requesting and obtaining individual facilities under the master agreement

7. Asset Purchase and Ownership: Provisions regarding asset selection, purchase, and ownership arrangements

8. Payment Terms: Terms for repayment, interest calculations, fees, and payment mechanics

9. Security Structure: Creation and maintenance of security interests over financed assets

10. Representations and Warranties: Standard and specific declarations made by the borrower

11. Covenants: Positive and negative obligations of the borrower during the facility period

12. Asset Maintenance and Insurance: Requirements for maintaining and insuring financed assets

13. Events of Default: Circumstances constituting default and consequences thereof

14. Enforcement and Remedies: Rights and remedies available to the finance provider upon default

15. Indemnities: Protection for the finance provider against various risks and losses

16. Assignment and Transfer: Rights and restrictions regarding transfer of rights under the agreement

17. Notices: Process and requirements for formal communications between parties

18. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

19. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, amendments