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General Credit Agreement Template for India

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Key Requirements PROMPT example:

General Credit Agreement

"I need a General Credit Agreement for a syndicated facility of INR 500 crore to be provided by a consortium of three Indian banks to a manufacturing company, with the facility to be made available by March 2025 and including provisions for working capital and term loan components."

Document background
The General Credit Agreement serves as the primary documentation for credit facilities in India, establishing the legal relationship between lenders and borrowers while ensuring compliance with Indian banking and financial regulations. This document is essential for any credit arrangement, whether for corporate funding, project finance, or working capital requirements. It details crucial elements including facility terms, security arrangements, representations and warranties, and covenant packages, all structured within the framework of Indian law. The agreement incorporates requirements from various Indian legislations including the Banking Regulation Act, RBI guidelines, and SARFAESI Act, making it a comprehensive instrument for credit transactions in the Indian market.
Suggested Sections

1. Parties: Identification of the lender(s) and borrower(s) with complete legal names and addresses

2. Background: Context of the credit facility and purpose of the loan

3. Definitions: Definitions of key terms used throughout the agreement

4. Facility Details: Description of the credit facility, including type, amount, and purpose

5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

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

7. Interest and Fees: Interest rate, calculation method, payment periods, and applicable fees

8. Repayment Terms: Repayment schedule, prepayment provisions, and payment mechanics

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

10. Covenants: Positive and negative obligations of the borrower during the facility period

11. Events of Default: Circumstances that constitute default and their consequences

12. Security: Details of collateral and security arrangements

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

14. Notices: Process and requirements for formal communications between parties

15. Miscellaneous: Standard boilerplate provisions including amendments, assignments, and severability

Optional Sections

1. Guarantees: Required when third-party guarantees are part of the credit structure

2. Syndication Provisions: Required for syndicated loans involving multiple lenders

3. Insurance Requirements: Detailed insurance obligations when specific insurance coverage is required

4. Special Drawdown Conditions: For facilities with multiple tranches or special drawdown requirements

5. Tax Provisions: Detailed tax clauses when complex tax implications are involved

6. Currency Provisions: Required for facilities involving foreign currency or multiple currencies

7. Agency Provisions: Required when a facility agent is appointed in syndicated facilities

8. Security Trustee Provisions: Required when security is held by a security trustee

9. Change of Control: Required when borrower ownership changes need specific handling

10. Force Majeure: Detailed force majeure provisions for specific circumstances

Suggested Schedules

1. Facility Summary: Detailed breakdown of facility amounts, interest rates, and key commercial terms

2. Conditions Precedent Documents: List of required documents and conditions to be satisfied

3. Form of Drawdown Notice: Template for borrower to request drawdown of facilities

4. Repayment Schedule: Detailed amortization schedule if applicable

5. Security Details: Comprehensive list and description of security/collateral

6. Form of Compliance Certificate: Template for periodic compliance reporting

7. Calculation of Interest and Fees: Detailed methodology for calculating interest and fees

8. Know Your Customer Requirements: List of required KYC documents and information

9. Contact Details: Complete contact information for all parties and authorized signatories

10. Financial Covenants Calculations: Methodology and formulas for financial covenant calculations

Authors

Alex Denne

Head of Growth (Open Source Law) @ 红杏直播 | 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 and Financial Services

Manufacturing

Real Estate and Construction

Information Technology

Healthcare

Retail and Consumer Goods

Infrastructure

Agriculture

Energy and Utilities

Telecommunications

Education

Transportation and Logistics

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit Operations

Corporate Banking

Business Development

Company Secretarial

Loan Administration

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Credit Manager

Legal Counsel

Corporate Lawyer

Risk Manager

Compliance Officer

Relationship Manager

Credit Analyst

Financial Controller

Company Secretary

Banking Operations Manager

Credit Risk Officer

Business Development 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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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