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Credit Arrangement Letter
"I need a Credit Arrangement Letter for a medium-sized manufacturing company seeking a RM 5 million working capital facility from Bank Negara Malaysia, with the facility to commence in March 2025 and including provisions for equipment purchase and inventory financing."
1. Bank Details and Reference: Letter heading with bank's details, reference number, and date
2. Recipient Details: Full name and address of the borrower
3. Facility Type and Amount: Clear statement of the type of credit facility being offered and the approved amount
4. Interest Rate and Fees: Detailed breakdown of applicable interest rates, processing fees, and other charges
5. Tenure and Repayment Terms: Duration of the facility and specific repayment obligations
6. Security Requirements: Details of any collateral, guarantees, or other security required
7. Key Conditions Precedent: Essential conditions that must be met before the facility becomes effective
8. Events of Default: Circumstances that would constitute default and their consequences
9. Acceptance Section: Space for borrower's acknowledgment and acceptance of terms
1. Islamic Banking Requirements: Required when the facility is Shariah-compliant, outlining relevant Islamic banking principles and requirements
2. Insurance Requirements: Include when specific insurance coverage is required as part of the facility
3. Special Conditions: Any unique terms or conditions specific to the borrower or facility type
4. Purpose Limitation: Include when the credit facility is restricted to specific uses
5. Cross-Default Provisions: Required when the facility is linked to other banking facilities or agreements
1. Schedule 1 - Facility Details: Detailed breakdown of the facility amount, interest calculations, and repayment schedule
2. Schedule 2 - Fees and Charges: Comprehensive list of all applicable fees, charges, and commission rates
3. Schedule 3 - Security Documents: List and details of required security documents and guarantees
4. Schedule 4 - Conditions Precedent: Complete list of all conditions that must be fulfilled before drawdown
5. Appendix A - Standard Terms and Conditions: Bank's standard terms and conditions applicable to the facility
6. Appendix B - Supporting Document Requirements: List of documents required from the borrower for facility activation
Authors
Facility Amount
Interest Rate
Business Day
Default Rate
Security Documents
Conditions Precedent
Disbursement Date
Repayment Date
Identity Card
Base Rate
Guarantor
Security
Event of Default
Banking Day
Ringgit Malaysia
Availability Period
Drawdown
Interest Period
Maturity Date
Principal
Security Interest
Financial Statements
Material Adverse Effect
Permitted Purpose
Bank
Borrower
Facility Term
Outstanding Amount
Due Date
Interest Rate
Fees and Charges
Repayment Terms
Security
Conditions Precedent
Representations and Warranties
Events of Default
Undertakings
Payment Mechanics
Set-off Rights
Force Majeure
Assignment
Notices
Governing Law
Dispute Resolution
Confidentiality
Amendment
Termination
Insurance
Default Interest
Financial Covenants
Security Enforcement
Indemnity
Anti-Money Laundering
Banking and Financial Services
Real Estate and Property Development
Manufacturing
Retail and Commerce
Agriculture and Plantation
Construction
Technology and Innovation
Healthcare
Education
Hospitality and Tourism
Transportation and Logistics
Energy and Utilities
Small and Medium Enterprises (SMEs)
Islamic Banking
Legal
Credit Risk
Corporate Banking
Retail Banking
Compliance
Operations
Credit Administration
Treasury
Finance
Risk Management
Islamic Banking
Documentation
Credit Officer
Relationship Manager
Credit Risk Manager
Branch Manager
Corporate Banking Officer
Legal Counsel
Compliance Officer
Credit Administrator
Chief Financial Officer
Finance Manager
Treasury Manager
Banking Operations Manager
Credit Analyst
Risk Assessment Officer
Company Secretary
Financial Controller
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