Revolving Credit Contract Template for Malaysia

The Revolving Credit Contract is a fundamental financing document used in Malaysian banking practice when a borrower requires flexible, ongoing access to credit that can be drawn down, repaid, and redrawn over time. This type of facility is particularly useful for businesses managing working capital, funding ongoing operations, or handling seasonal cash flow fluctuations. The document must comply with Malaysian banking regulations, including the Financial Services Act 2013 and, where applicable, the Islamic Financial Services Act 2013. It typically includes detailed provisions on facility limits, interest calculations, security arrangements, and operational mechanics for drawdowns and repayments. The agreement can be structured for either conventional or Islamic banking requirements, reflecting Malaysia's dual banking system.

1. Parties: Identification of the lender and borrower with complete legal names and registration details

2. Background: Context of the revolving credit facility and relationship between parties

3. Definitions: Detailed definitions of terms used throughout the agreement, including financial and technical terms

4. Facility Details: Core terms including facility limit, purpose, availability period, and interest rates

5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

6. Drawdown Mechanism: Procedures and requirements for drawing down the facility

7. Interest and Fees: Calculation and payment of interest, commitment fees, and other charges

8. Repayment Terms: Repayment obligations, minimum payments, and prepayment provisions

9. Representations and Warranties: Standard declarations by the borrower about their legal and financial status

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

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

12. Security: Details of any security arrangements and enforcement rights

13. Payments and Calculations: Payment mechanics, business day conventions, and calculation methods

14. Changes to Parties: Assignment and transfer provisions

15. Notices: Communication requirements and contact details

16. Governing Law and Jurisdiction: Malaysian law as governing law and jurisdiction clauses

17. Execution: Signature blocks and execution formalities