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Revolving Line Of Credit Agreement Template for Malaysia

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Key Requirements PROMPT example:

Revolving Line Of Credit Agreement

"I need a Revolving Line of Credit Agreement for a Malaysian manufacturing company, with a facility amount of RM 5 million, requiring both corporate and personal guarantees, to be completed by March 2025."

What is a Revolving Line Of Credit Agreement?

The Revolving Line of Credit Agreement is a crucial financing document used when businesses require flexible access to funding for working capital, operational expenses, or growth opportunities. This agreement, governed by Malaysian law and regulatory framework, establishes a credit facility that can be drawn down, repaid, and redrawn multiple times during its term, providing businesses with financial flexibility. The document encompasses detailed provisions for facility utilization, security arrangements, covenants, and compliance requirements, adhering to Bank Negara Malaysia's guidelines and, where necessary, Islamic banking principles. It's particularly valuable for businesses with cyclical cash flows or varying capital needs, offering a more flexible alternative to term loans.

What sections should be included in a Revolving Line Of Credit Agreement?

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

2. Background: Context of the agreement and relationship between parties

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Facility Details: Specific terms of the revolving credit facility including amount, purpose, and availability period

5. Interest and Fees: Interest calculation method, applicable rates, and associated fees

6. Drawdown Mechanics: Procedures and conditions for drawing down the facility

7. Repayment Terms: Terms and conditions for repayment, including minimum payments and prepayment provisions

8. Security Arrangements: Details of any security or collateral required

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

10. Covenants: Positive and negative undertakings by the borrower

11. Events of Default: Circumstances constituting default and consequences

12. Termination: Conditions and procedures for terminating the facility

13. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction details

14. Notices: Communication procedures between parties

15. Execution: Signature blocks and execution formalities

What sections are optional to include in a Revolving Line Of Credit Agreement?

1. Islamic Banking Provisions: Required when any party requires Shariah-compliant financing arrangements

2. Guarantee: Include when a guarantor is providing additional security for the facility

3. Currency Provisions: Required when the facility allows for multiple currency drawings

4. Assignment and Transfer: Include when either party may need to transfer their rights or obligations

5. Increased Costs: Include when lender needs protection against regulatory changes affecting costs

6. Tax Provisions: Detailed tax clauses when complex tax implications exist

7. Market Disruption: Include when reference rates might be affected by market disruption

8. Anti-Money Laundering Provisions: Additional compliance requirements for high-risk borrowers or large facilities

What schedules should be included in a Revolving Line Of Credit Agreement?

1. Facility Terms Schedule: Detailed commercial terms including limits, interest rates, and fees

2. Conditions Precedent: List of documents and conditions required before first drawdown

3. Form of Drawdown Notice: Standard form for requesting drawdowns

4. Security Documents: List and copies of all security documents

5. Repayment Schedule: If applicable, schedule of minimum repayment amounts and dates

6. Compliance Certificates: Template certificates for ongoing compliance reporting

7. Financial Covenants: Detailed financial ratios and calculations

8. Permitted Security Interests: List of security interests allowed under the facility

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

Relevant legal definitions





































Clauses






























Relevant Industries

Banking & Financial Services

Manufacturing

Retail & Distribution

Real Estate & Construction

Technology & Communications

Healthcare

Agriculture

Energy & Resources

Transportation & Logistics

Hospitality & Tourism

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Banking

Islamic Banking

Credit Administration

Company Secretarial

Senior Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Financial Controller

Corporate Lawyer

Legal Counsel

Compliance Officer

Credit Risk Manager

Relationship Manager

Banking Officer

Corporate Banking Manager

Islamic Banking Specialist

Company Secretary

Managing Director

Finance 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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