Line Of Credit Agreement

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Line Of Credit Agreement

Line Of Credit Agreement

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Website: {{website}}

LINE OF CREDIT AGREEMENT

This Line of Credit Agreement (hereinafter referred to as the “Agreement”) is made and entered into on this {{day}} day of {{month}}, {{year}}, by and between:

{{lender_company_name}}, a company duly incorporated and existing under the laws of {{lender_jurisdiction}}, with its principal place of business at {{lender_address}} (hereinafter referred to as the “Lender”);

AND

{{borrower_company_name}}, a company duly incorporated and existing under the laws of {{borrower_jurisdiction}}, with its principal place of business at {{borrower_address}} (hereinafter referred to as the “Borrower”).

Collectively referred to as the “Parties” and individually as a “Party”.

1. GRANT OF LINE OF CREDIT

Subject to the terms and conditions of this Agreement, the Lender hereby establishes a revolving line of credit in favour of the Borrower, allowing the Borrower to borrow, repay, and re-borrow funds up to a maximum principal amount of {{currency}} {{credit_limit}} ({{credit_limit_words}}) at any one time outstanding (hereinafter referred to as the “Credit Limit”).

2. PURPOSE OF CREDIT

The Borrower shall use the funds advanced under this Line of Credit solely for the purpose of {{purpose_of_credit}}.

3. INTEREST RATE

Interest shall accrue on the outstanding principal balance of the Line of Credit at a rate of {{interest_rate}}% per annum, calculated daily and compounded {{compounding_frequency}}.

4. REPAYMENT TERMS

The Borrower agrees to make minimum monthly payments of accrued interest plus {{minimum_principal_repayment_amount}} (or {{minimum_principal_repayment_percentage}}% of the outstanding principal balance, whichever is greater) on or before the {{payment_due_day}} day of each calendar month, commencing on {{first_payment_date}}. All outstanding principal and accrued interest shall be due and payable in full on or before the {{maturity_date}} (the “Maturity Date”).

5. FEES AND CHARGES

The Borrower agrees to pay the following fees and charges:

a. Facility Fee: {{currency}} {{facility_fee}} upon execution of this Agreement.

b. Late Payment Fee: A fee of {{currency}} {{late_fee}} for any payment not received within {{grace_period}} days of its due date.

c. Other fees as may be agreed upon in writing between the Parties.

6. COVENANTS

The Borrower covenants and agrees to:

a. Provide the Lender with financial statements and other information as reasonably requested.

b. Maintain all necessary licenses and permits to operate its business.

c. Not incur any additional indebtedness exceeding {{currency}} {{additional_indebtedness_limit}} without the prior written consent of the Lender.

d. Notify the Lender immediately of any material adverse change in its financial condition.

7. EVENTS OF DEFAULT

The occurrence of any of the following shall constitute an Event of Default:

a. Failure by the Borrower to make any payment when due under this Agreement.

b. Breach by the Borrower of any covenant or other term of this Agreement.

c. Insolvency or bankruptcy of the Borrower.

d. Any representation or warranty made by the Borrower proving to be false or misleading.

8. GOVERNING LAW AND JURISDICTION

This Agreement shall be governed by and construed in accordance with the laws of {{governing_law_country}}, and the Parties hereby submit to the exclusive jurisdiction of the courts of {{jurisdiction_city}}, {{governing_law_country}}.

9. SIGNATURES

IN WITNESS WHEREOF, the Parties have executed this Line of Credit Agreement on the date first above written.

FOR THE LENDER:

_____________________________

Name: {{lender_signatory_name}}

Title: {{lender_signatory_title}}

FOR THE BORROWER:

_____________________________

Name: {{borrower_signatory_name}}

Title: {{borrower_signatory_title}}