The Loan Facility Letter is a crucial document in South African commercial lending practice, used when a financial institution offers credit facilities to businesses or individuals. It serves as both a formal offer of finance and a binding agreement once accepted. The document is typically used for corporate lending, project finance, or structured finance transactions where a more streamlined approach than a full facility agreement is appropriate. The letter must comply with South African banking regulations, including the National Credit Act, Financial Intelligence Centre Act, and Banks Act. It contains essential information about the facility terms, conditions, security requirements, and obligations of all parties involved. While more concise than a full loan agreement, the Loan Facility Letter maintains legal enforceability while providing a more accessible format for commercial transactions.
Your data doesn't train Genie's AI
You keep IP ownership of your information
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
OR
Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
1. Address Block: Formal letter heading including date, recipient details, and reference number
2. Salutation: Formal greeting to the borrower
3. Introduction: Opening paragraph identifying the lender and borrower, and confirming the offer of facilities
4. Facility Details: Key terms of the facility including amount, purpose, and type of facility
5. Interest and Fees: Interest rate, calculation method, and all applicable fees
6. Repayment Terms: Repayment schedule, method of payment, and prepayment terms
7. Conditions Precedent: Conditions that must be satisfied before the facility becomes available
8. Security Requirements: Details of any security or guarantees required
9. Representations and Warranties: Basic representations made by the borrower
10. Covenants: Key undertakings by the borrower
11. Events of Default: Circumstances that would constitute default
12. Acceptance: Instructions for accepting the facility offer and signature blocks
1. Multiple Facility Types: Additional section when offering more than one type of facility (e.g., term loan and overdraft)
2. Hedging Requirements: Section required when the facility includes mandatory hedging obligations
3. Group Structure: Required when the borrower is part of a larger corporate group and group company obligations need to be specified
4. Property Details: Required for property-backed facilities, including specific property-related conditions and requirements
5. Insurance Requirements: Detailed insurance requirements section when specific insurance coverage is required beyond standard requirements
6. Project Specific Terms: For project finance facilities, including specific project milestones and conditions
1. Facility Summary: Detailed breakdown of all facility terms, limits, and pricing in tabular format
2. Conditions Precedent Checklist: Detailed list of all required documents and conditions to be satisfied
3. Repayment Schedule: Detailed amortization schedule if applicable
4. Fee Schedule: Comprehensive breakdown of all applicable fees and charges
5. Security Schedule: Detailed list of all security items and their key terms
6. Form of Drawdown Notice: Template for requesting disbursements under the facility
7. Know Your Customer Requirements: List of required KYC documentation and compliance requirements
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Real Estate and Property
Manufacturing
Mining and Resources
Retail and Consumer
Agriculture
Technology and Communications
Healthcare
Construction and Infrastructure
Transport and Logistics
Energy and Utilities
Professional Services
Relevant Teams
Legal
Finance
Treasury
Risk Management
Compliance
Credit
Commercial
Corporate Banking
Business Development
Operations
Company Secretariat
Executive Management
Relevant Roles
Chief Financial Officer
Finance Director
Treasury Manager
Financial Manager
Corporate Lawyer
Legal Counsel
Relationship Manager
Credit Manager
Risk Manager
Compliance Officer
Company Secretary
Managing Director
Chief Executive Officer
Commercial Director
Business Development Manager
Project Finance Manager
Account Manager
Banking Officer
Finance Controller
Credit Analyst
Find the exact document you need
Letter Of Credit Cost
A South African banking document detailing all costs, fees, and charges associated with issuing and maintaining a letter of credit, in compliance with local banking regulations and international standards.
find out more
Standby Letter Of Credit Cost
A South African banking document detailing the complete fee structure and costs associated with issuing and maintaining a standby letter of credit, in accordance with local banking regulations.
find out more
Letter Of Credit Project (Finance)
A South African law-governed Letter of Credit document structured for project finance transactions, combining payment security with project-specific requirements and milestones.
find out more
At Sight Letter Of Credit
A South African-compliant Letter of Credit providing immediate payment upon presentation of compliant documents, governed by local banking regulations and UCP 600.
find out more
Lc Sight And Usance
A South African law-governed Letter of Credit document combining sight and usance payment options for international trade transactions.
find out more
Irrevocable Unconfirmed Letter Of Credit
An Irrevocable Unconfirmed Letter of Credit under South African law, providing a binding bank payment guarantee in international trade transactions.
find out more
Loan Against Letter Of Credit
South African law-governed agreement for providing loan financing against a Letter of Credit, typically used in international trade transactions.
find out more
Cash Credit Account Closure Letter
A formal South African banking document confirming the closure of a cash credit account, outlining closure terms and final settlement requirements under local banking regulations.
find out more
Utility Letter Of Credit
A South African law-governed bank guarantee document ensuring payment security for utility services, issued by a bank in favor of a utility provider.
find out more
Lc Agreement
A South African law-governed agreement establishing terms for a bank-issued Letter of Credit, facilitating secure international trade transactions.
find out more
Standby Guarantee
A South African law-governed bank guarantee that provides payment security upon documented default of specified obligations.
find out more
Irrevocable Letter Of Credit Cost
A South African law-governed banking instrument that provides guaranteed payment terms and associated costs for international trade transactions under an irrevocable letter of credit facility.
find out more
Credit Facility Offer Letter
A South African law-compliant formal letter from a financial institution offering credit facilities to a borrower, detailing terms, conditions, and statutory requirements.
find out more
Usance Lc Discounting
South African agreement for discounting Usance Letters of Credit, governing the early payment of LC proceeds at a discount under South African banking and trade finance regulations.
find out more
Transferring Bank In Lc
A South African law-governed agreement for a bank acting as Transferring Bank in Letter of Credit transactions, detailing transfer terms and regulatory compliance requirements.
find out more
Payment Against Lc
A South African law-governed agreement establishing payment terms and conditions through Letter of Credit in international trade transactions.
find out more
Non Transferable Letter Of Credit
A South African-compliant banking instrument that provides an irrevocable payment guarantee from a bank to a beneficiary, featuring non-transferability provisions.
find out more
Negotiation Bank In Lc
South African banking agreement governing LC document negotiation terms and conditions under local banking laws and international trade practices.
find out more
Cumulative Revolving Letter Of Credit
A South African law-governed banking instrument establishing a renewable credit facility where unused amounts accumulate, typically used in international trade transactions.
find out more
Transferable Lc At Sight
A South African law-governed transferable letter of credit that provides immediate payment upon document presentation, commonly used in international trade transactions.
find out more
Small Business Letter Of Credit
A South African banking instrument providing payment security for small business transactions, governed by local banking laws and regulations.
find out more
Secured Letter Of Credit
A South African law-governed banking instrument combining letter of credit features with security arrangements for enhanced protection in international trade transactions.
find out more
Local Letter Of Credit
A South African banking instrument providing payment security for domestic trade transactions, governed by local banking laws and regulations.
find out more
Loan Facility Letter
A South African banking document that outlines credit facility terms and conditions, serving as a formal offer of lending facilities in compliance with local banking regulations.
find out more
Non Operative Letter Of Credit
A South African banking instrument providing payment security in international trade transactions, governed by local banking laws and UCP 600.
find out more
Letter Of Credit 90 Days
A South African bank-issued payment guarantee instrument with 90-day terms, securing international trade transactions under local banking laws and UCP 600.
find out more
Letter Of Credit 60 Days
A South African bank-issued financial instrument guaranteeing payment to a seller after 60 days, subject to document compliance and governed by South African law.
find out more
Letter Of Credit 30 Days
A South African law-governed banking instrument guaranteeing payment within 30 days for international trade transactions, subject to document compliance.
find out more
Irrevocable Confirmed Lc At Sight
A South African-governed irrevocable confirmed Letter of Credit providing immediate payment upon document presentation, subject to UCP 600 rules and local banking regulations.
find out more
Inland Letter Of Credit
A South African banking instrument providing payment security in domestic trade transactions, governed by local banking and commercial law.
find out more
Import Documentary Letter Of Credit
A bank-issued trade finance document governed by South African and international banking laws, guaranteeing payment to an exporter upon presentation of compliant import documents.
find out more
Domestic Lc
A South African domestic Letter of Credit document that guarantees payment between local parties, governed by South African banking and commercial laws.
find out more
Discrepancy Letter Of Credit
A formal South African banking document acknowledging Letter of Credit discrepancies and requesting payment processing despite identified issues.
find out more
Digital Letter Of Credit
A South African law-governed digital payment guarantee instrument used in international trade, combining traditional letter of credit features with electronic transaction capabilities.
find out more
Business Letter Of Credit
A bank-issued payment guarantee document under South African law that ensures secure payment in commercial transactions, subject to document compliance.
find out more
Beneficiary In Letter Of Credit
A South African law-governed financial instrument issued by a bank guaranteeing payment to a seller (beneficiary) in international trade upon presentation of compliant documents.
find out more
Bank Guarantee And Letter Of Credit
South African law-compliant template for Bank Guarantees and Letters of Credit, establishing terms and conditions for financial institutions providing banking guarantees and documentary credits.
find out more
Unsecured Letter Of Credit
A South African law-governed banking instrument providing an unsecured payment guarantee from a bank to a beneficiary upon presentation of specified documents.
find out more
Trade Finance Letter Of Credit
A bank-issued payment guarantee document governed by South African law and UCP 600, providing security in international trade transactions.
find out more
Unconditional Letter Of Credit
A South African law-governed irrevocable bank undertaking to make payment against compliant documents, subject to UCP 600 and local banking regulations.
find out more
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)