Credit Application Agreement Template for Malaysia

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Key Requirements PROMPT example:

Credit Application Agreement

"I need a Credit Application Agreement for a Malaysian manufacturing company seeking multiple credit facilities totaling RM 5 million, including both term loan and working capital facilities, with the agreement to commence in March 2025 and include comprehensive security provisions."

Document background
The Credit Application Agreement serves as the foundational document for establishing credit facilities in Malaysia, whether for corporate or individual borrowers. It is used when a party seeks to obtain credit from a financial institution or licensed credit provider, incorporating all necessary elements required by Malaysian financial regulations. The agreement includes comprehensive details about the credit facility, security arrangements, repayment terms, and obligations of all parties involved. It ensures compliance with key Malaysian legislation including the Financial Services Act 2013, Consumer Protection Act 1999, and Anti-Money Laundering regulations. This document is essential for both the credit provider's risk management and the borrower's understanding of their obligations and rights under the credit facility.
Suggested Sections

1. Parties: Identification of the credit provider and the applicant(s), including registration/ID numbers and addresses

2. Background: Context of the credit application and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Credit Facility Details: Specific details of the credit facility including amount, purpose, and term

5. Interest and Fees: Interest rates, calculation methods, and all applicable fees

6. Repayment Terms: Payment schedule, method of payment, and prepayment provisions

7. Conditions Precedent: Conditions that must be met before the credit facility becomes available

8. Representations and Warranties: Statements of fact and assurances given by the applicant

9. Covenants: Ongoing obligations of the applicant during the term of the facility

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

11. Data Protection and Privacy: Provisions for handling personal data in compliance with PDPA 2010

12. Anti-Money Laundering Compliance: AML/CTF compliance requirements and declarations

13. Governing Law and Jurisdiction: Malaysian law as governing law and jurisdiction for disputes

Optional Sections

1. Security: Required when the credit facility is secured by collateral or guarantees

2. Insurance: Required when insurance coverage is mandatory for the credit facility

3. Joint and Several Liability: Required for multiple applicants or guarantors

4. Electronic Communications: Optional section for agreements allowing electronic notifications and statements

5. Foreign Currency Provisions: Required when the facility involves foreign currency transactions

6. Special Drawdown Conditions: Required for facilities with specific drawdown requirements or multiple tranches

Suggested Schedules

1. Schedule 1 - Facility Details: Detailed breakdown of the credit facility, including limits, interest rates, and fees

2. Schedule 2 - Repayment Schedule: Detailed payment schedule including dates and amounts

3. Schedule 3 - Security Details: Details of any security or collateral provided

4. Schedule 4 - Required Documents: List of documents required for the application and ongoing compliance

5. Schedule 5 - Special Conditions: Any special terms or conditions applicable to the specific facility

6. Appendix A - Application Form: Standard credit application form with applicant's information

7. Appendix B - Supporting Documents Checklist: Checklist of required supporting documents

8. Appendix C - Fee Schedule: Comprehensive list of all applicable fees and charges

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Banking & Financial Services

Commercial Lending

Retail Banking

Corporate Banking

Small and Medium Enterprises (SME)

Manufacturing

Real Estate

Construction

Trading

Import/Export

Retail

Technology

Agriculture

Healthcare

Relevant Teams

Legal

Compliance

Risk Management

Credit Administration

Operations

Finance

Treasury

Corporate Banking

Retail Banking

Credit Analysis

Document Processing

Customer Service

Internal Audit

Relevant Roles

Credit Officer

Relationship Manager

Risk Manager

Compliance Officer

Legal Counsel

Chief Financial Officer

Financial Controller

Credit Analyst

Branch Manager

Treasury Manager

Operations Manager

Company Secretary

Finance Director

Managing Director

Business Development Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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