������Ƶ

A Revolving Credit Agreement is essential for businesses seeking flexible financing arrangements in the Philippines. This document is typically used when a borrower requires ongoing access to credit that can be drawn down, repaid, and redrawn as needed, subject to an overall facility limit. The agreement must comply with Philippine banking regulations, including BSP Circular No. 1048 on credit risk management and the Truth in Lending Act's disclosure requirements. It contains comprehensive provisions covering facility terms, security arrangements (if applicable), conditions precedent, utilization mechanics, interest and fee structures, and borrower obligations. This type of agreement is particularly useful for businesses with cyclical cash flows or varying working capital needs, providing them with flexibility while ensuring lender protection under Philippine law.

1. Parties: Identification of the Lender and Borrower, including registration details and addresses

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

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

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

5. Conditions Precedent: Conditions that must be satisfied before initial and subsequent drawdowns

6. Utilization: Process and requirements for drawing down the facility

7. Repayment and Prepayment: Terms for repayment, prepayment options, and consequences

8. Interest: Interest calculation, periods, and payment terms including default interest

9. Fees: All applicable fees including commitment fees, arrangement fees, and other charges

10. Tax Provisions: Tax obligations and gross-up provisions

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

12. Covenants: Positive and negative undertakings of the borrower

13. Events of Default: Circumstances constituting default and consequences

14. Changes to Parties: Rules regarding assignment and transfer

15. Administration: Administrative aspects including calculations, notices, and payments

16. Governing Law and Enforcement: Choice of law, jurisdiction, and dispute resolution