The Overdraft Facility Agreement is a crucial banking document used when a borrower requires flexible access to additional funds beyond their account balance. This agreement is specifically tailored for the Australian market and complies with Australian banking laws and regulations, including the National Consumer Credit Protection Act 2009 and Banking Act 1959. It is commonly used by businesses seeking working capital solutions or individuals requiring cash flow management tools. The document comprehensively covers facility limits, interest calculations, fee structures, security requirements, and default provisions, while incorporating Australian banking industry standards and practices. It's particularly relevant when establishing new banking relationships or reviewing existing facilities, and can be customized to accommodate various security arrangements and borrower circumstances.

1. Parties: Identifies the lender (financial institution) and borrower(s), including their full legal names, addresses, and ACN/ABN if applicable

2. Background: Explains the context of the agreement, including the borrower's request for the facility and the lender's agreement to provide it

3. Definitions and Interpretation: Defines key terms used throughout the agreement and sets out rules for interpreting the document

4. The Facility: Details of the overdraft facility including the approved limit, purpose, and availability

5. Interest and Fees: Specifies interest rates (including default rates), calculation methods, fee types, and payment obligations

6. Drawings and Payments: Procedures for accessing the facility, making payments, and maintaining the account

7. Representations and Warranties: Statements of fact and assurances given by the borrower about their circumstances and ability to perform obligations

8. Undertakings: Ongoing obligations of the borrower throughout the term of the facility

9. Events of Default: Circumstances that constitute default and the lender's rights upon default

10. Review and Cancellation: Terms for periodic review of the facility and circumstances under which it may be cancelled

11. General Provisions: Standard contract clauses including notices, governing law, and assignment rights

12. Execution: Formal signing section including execution blocks for all parties