Revolving Agreement Template for New Zealand

The Revolving Agreement is a crucial financial instrument used in New Zealand to establish flexible credit arrangements between lenders and borrowers. It is particularly suited for businesses and individuals requiring ongoing access to credit with the ability to draw down and repay funds multiple times within an approved limit. This agreement type must comply with New Zealand's robust financial services regulatory framework, including the Contract and Commercial Law Act 2017 and Credit Contracts and Consumer Finance Act 2003. The document typically includes comprehensive terms covering facility limits, drawdown mechanisms, repayment terms, interest calculations, security arrangements, and compliance requirements. It can be adapted for various purposes, from working capital facilities to trade finance, and can include additional features such as multi-currency options or specialized drawing rights.

1. Parties: Identification of all parties to the agreement, including their legal names, addresses, and company numbers if applicable

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

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules for interpretation

4. Facility Details: Core terms of the revolving facility including limit, purpose, and revolving nature

5. Drawdown Mechanics: Procedures and conditions for requesting and receiving drawdowns under the facility

6. Repayment Terms: Terms for repayment including minimum payments, payment frequency, and revolving nature of repaid amounts

7. Interest and Fees: Interest calculation methodology, applicable fees, and payment terms

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

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Undertakings: Ongoing obligations of the borrower during the term of the facility

11. Events of Default: Circumstances that constitute default and consequences

12. Term and Termination: Duration of the agreement and circumstances for termination

13. General Provisions: Standard legal provisions including notices, amendments, governing law, and dispute resolution