Credit Line Arrangement Variable Rate of Interest – Repayable On Demand
REVOLVING CREDIT LINE
[Document date]
[Borrower name]
[Borrower address]
Dear Sir/Madam,
Sub – Establishment of Revolving Credit Facility
[Lender name], the lender is happy to propose to set up a revolving credit facility in the figure and on the terms mentioned below:
Borrower – [Borrower name]
Credit Facility – Revolving credit line in the limit of $[Highest loan amount] (the ‘Credit’).
Purpose – [State purpose for which loan is to be sanctioned]
Interest – The interest on the total principal amount and, past due interest compounded monthly will be payable every month – on the first day of every month throughout the period of the Credit, and, also as before demand for payment or judgment, or together at a per annum price equal to the prime interest rate declared by the [bank name] from time to time, as a reference rate in effect for decisive interest rates on commercial loans plus [mention the % above prime lender].
Term & Maturity – The Credit are repayable on demand.
Availment – [date on which loan proceeds are available to be advanced]
Security – [State any security the borrower gives – guarantees, mortgages etc.]
Positive Covenants – Till the time the amounts due for the Credit are paid in full, the borrower agrees to do the following:
[State here the affirmative points the borrower agrees on – e.g. the borrower will give financial statements every month to the lender etc.]
Negative Covenants – Till the due amounts are paid in full, the borrower shall not, without the written approval form the Lender, do any of these:
[State her any negative covenants of the borrower – e.g., the borrower will not take a loan from any other person/association.]
Yours truly,
____________________________________
Accepted ______________________, 20___
____________________________________
It is very important to keep a close eye on the terms and conditions with…
If you are not able to pay your creditors then you can always write a…
In order to have businesses work smooth and easy, it is very important to have…
Whenever a company launches a new product, it is important that they inform or notify…
It is truly an honor if you have been invited at some business event as…
Debts are something that no one likes and if you are not able to pay…
This website uses cookies.