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Financing Contract Agreement for the United Kingdom

Financing Contract Agreement Template for England and Wales

A Financing Contract Agreement under English and Welsh law is a legally binding document that establishes the terms and conditions under which a lender provides financial facilities to a borrower. It sets out the loan amount, interest rates, repayment terms, security arrangements, and obligations of all parties involved. The agreement incorporates regulatory requirements under the Financial Services and Markets Act 2000 and related legislation, while ensuring compliance with UK financial regulations and banking practices.

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What is a Financing Contract Agreement?

The Financing Contract Agreement is essential for documenting lending arrangements in England and Wales, providing clarity and security for both lenders and borrowers. It is commonly used when establishing new credit facilities, refinancing existing debt, or structuring project finance. The agreement must comply with UK financial regulations, including the Financial Services and Markets Act 2000, and typically includes detailed provisions on drawdown conditions, representations and warranties, covenants, and events of default. This comprehensive document serves as the primary reference point for managing the lending relationship throughout its duration.

What sections should be included in a Financing Contract Agreement?

1. Parties: Identification and details of the contracting parties including full legal names, registered addresses, and company numbers

2. Background: Context and purpose of the financing arrangement, including any relevant background information and transaction overview

3. Definitions: Comprehensive list of defined terms used throughout the agreement

4. Facility Details: Amount, purpose, and type of financing, including facility limits and availability period

5. Interest and Fees: Interest rate calculation methodology, payment dates, and all applicable fees including arrangement fees and commitment fees

6. Repayment Terms: Schedule and methods of repayment, including prepayment provisions and mandatory prepayment events

7. Representations and Warranties: Statements of fact and assurances given by parties regarding their status, capacity, and compliance

8. Events of Default: Comprehensive list of circumstances constituting default and their consequences, including remedies available to the lender

What sections are optional to include in a Financing Contract Agreement?

1. Security: Details of any collateral or security arrangements, including creation and perfection requirements

2. Guarantees: Terms of any guarantees provided, including scope and limitations of guarantee obligations

3. Insurance Requirements: Specified insurance coverage requirements and minimum terms

4. Syndication Provisions: Terms governing multiple lenders, including voting rights and transfer provisions

What schedules should be included in a Financing Contract Agreement?

1. Schedule 1 - Conditions Precedent: List of documents and conditions required to be satisfied before initial drawdown

2. Schedule 2 - Repayment Schedule: Detailed payment dates and amounts for scheduled repayments

3. Schedule 3 - Form of Drawdown Notice: Template document for requesting disbursement of funds

4. Schedule 4 - Security Documents: Forms and details of security arrangements and associated documentation

5. Schedule 5 - Fee Schedule: Comprehensive breakdown of all applicable fees and charges

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions









































Clauses



































Industries

Financial Services and Markets Act 2000: Primary legislation that regulates financial services and markets in the UK, establishes the regulatory framework, and defines authorized activities

Consumer Credit Act 1974: Regulates consumer credit agreements, establishes consumer protection measures, and defines licensing requirements for consumer financing

Financial Services Act 2012: Updates the regulatory framework, establishes the Financial Conduct Authority (FCA), and defines prudential regulation

Law of Property Act 1925: Fundamental contract law legislation dealing with property rights and interests

Contracts (Rights of Third Parties) Act 1999: Governs how third parties may enforce terms of a contract

Unfair Contract Terms Act 1977: Regulates unfair terms in contracts and sets limits on the extent to which liability for breach of contract can be excluded

Money Laundering Regulations 2017: Establishes Know Your Customer (KYC) requirements and due diligence obligations for financial transactions

FCA Handbook: Contains detailed rules and guidance including the Consumer Credit sourcebook (CONC) and Principles for Businesses (PRIN)

UK GDPR and Data Protection Act 2018: Regulates the processing and handling of personal data in financial transactions and contracts

Bills of Sale Acts 1878 and 1882: Relevant for secured financing, governing the registration and enforcement of security over personal property

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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