Facility Agreement Loan Template for Belgium

The Facility Agreement Loan under Belgian law is a fundamental document used in financing transactions where a lender extends credit facilities to a borrower. This agreement type is essential for both corporate and commercial lending in Belgium, requiring compliance with the Belgian Civil Code, Banking Law of 2014, and other relevant financial regulations. The document is typically used when establishing new credit facilities, refinancing existing debt, or structuring syndicated loans. It contains detailed provisions on facility terms, conditions precedent, utilization mechanics, repayment obligations, security arrangements (if applicable), and various undertakings required under Belgian law. The agreement must incorporate specific Belgian law requirements regarding security interests, enforcement rights, and banking regulations while following established market practice for facility agreements.

1. Parties: Identification of the lender(s), borrower(s), guarantor(s), and any other parties to the agreement

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

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and interpretation rules

4. The Facility: Details of the loan facility, including amount, purpose, and availability

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

6. Utilisation: Process and requirements for drawing down the facility

7. Repayment: Terms of repayment including schedule and prepayment provisions

8. Interest: Interest calculation, periods, and payment terms

9. Fees: All applicable fees including arrangement, commitment, and prepayment fees

10. Tax Gross Up and Indemnities: Tax-related provisions and associated indemnities

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

12. Information Undertakings: Borrower's obligations to provide financial and other information

13. Financial Covenants: Financial ratios and tests the borrower must maintain

14. General Undertakings: General positive and negative obligations of the borrower

15. Events of Default: Circumstances that trigger default and lender's enforcement rights

16. Changes to Parties: Provisions regarding assignment and transfer

17. Administration: Administrative provisions including payment mechanics and notices

18. Governing Law and Jurisdiction: Belgian law as governing law and jurisdiction provisions