Term Loan Credit Agreement for Australia

Term Loan Credit Agreement Template for Australia

A comprehensive legal agreement governed by Australian law that establishes the terms and conditions under which a lender provides a term loan facility to a borrower. The agreement details all aspects of the lending relationship, including loan amount, interest rates, repayment terms, conditions precedent, representations and warranties, covenants, and events of default. It incorporates Australian regulatory requirements, including those under the National Consumer Credit Protection Act 2009 (Cth) and other relevant financial services legislation, while providing a robust framework for the parties' rights and obligations throughout the loan term.

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What is a Term Loan Credit Agreement?

The Term Loan Credit Agreement is a fundamental financing document used when a borrower requires a fixed-term loan facility from a lender. This agreement is particularly relevant in the Australian financial services landscape, where it must comply with comprehensive regulatory requirements including the National Consumer Credit Protection Act 2009 (Cth) and the Banking Act 1959 (Cth). The document typically covers loan amount, purpose, drawdown mechanics, interest calculations, repayment terms, security arrangements (if applicable), representations and warranties, financial and general covenants, and events of default. It serves as the primary document governing the lending relationship throughout the facility term and provides certainty and protection for all parties involved.

What sections should be included in a Term Loan Credit Agreement?

1. Parties: Identifies the lender, borrower, and any guarantors or other parties to the agreement

2. Background: Sets out the context and purpose of the loan facility

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles for the agreement

4. The Facility: Details the amount, purpose, and basic terms of the loan facility

5. Conditions Precedent: Lists conditions that must be satisfied before drawdown

6. Drawdown: Specifies the drawdown mechanics, notice requirements, and availability period

7. Interest: Sets out interest rates, calculation methods, and payment provisions

8. Repayment and Prepayment: Details scheduled repayments, prepayment rights, and related conditions

9. Representations and Warranties: Contains borrower's representations about its status and capacity

10. Undertakings: Lists positive and negative covenants the borrower must observe

11. Events of Default: Specifies circumstances constituting default and consequences

12. Changes to Parties: Addresses assignment and transfer rights

13. Administration: Covers operational aspects including payments and calculations

14. Notices: Specifies how formal communications between parties should be made

15. Governing Law and Enforcement: Identifies governing law and jurisdiction for disputes

What sections are optional to include in a Term Loan Credit Agreement?

1. Security: Required when the loan is secured - details security arrangements and enforcement rights

2. Guarantee: Required when there are guarantors - contains guarantee and indemnity provisions

3. Multiple Borrowers: Required for multiple borrowers - addresses joint and several liability

4. Increased Costs and Tax Gross-Up: Optional provisions protecting lender against regulatory changes and tax implications

5. Market Disruption: Optional provisions addressing benchmark rate unavailability or market disruption

6. Syndication Provisions: Required for syndicated facilities - addresses multiple lender mechanics

7. Anti-Money Laundering: Detailed AML/CTF provisions if not covered in representations and warranties

8. Privacy: Detailed privacy provisions if not covered in general terms

What schedules should be included in a Term Loan Credit Agreement?

1. Conditions Precedent: Detailed list of required conditions precedent documents and evidence

2. Form of Drawdown Notice: Template form for borrower to request loan drawdown

3. Repayment Schedule: Detailed schedule of repayment dates and amounts

4. Form of Compliance Certificate: Template for periodic compliance certification

5. Financial Covenants: Detailed financial covenants and calculation methodologies

6. Permitted Security Interests: List of security interests permitted under negative pledge

7. Form of Transfer Certificate: Template for transferring loan participations

8. Address Details: Contact details for notices and communications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Corporate Finance

Real Estate

Infrastructure

Manufacturing

Mining and Resources

Agriculture

Healthcare

Retail

Technology

Transportation and Logistics

Energy and Utilities

Relevant Teams

Legal

Finance

Treasury

Risk and Compliance

Credit

Corporate Finance

Banking

Company Secretariat

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Lawyer

Legal Counsel

Banking Lawyer

Credit Manager

Risk Manager

Compliance Officer

Company Secretary

Financial Controller

Relationship Manager

Credit Analyst

Transaction Manager

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

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