Revolving Credit Agreement Template for Belgium

The Revolving Credit Agreement is a fundamental financing document used when a borrower requires flexible access to funding over an extended period. This type of facility is particularly valuable for businesses with fluctuating working capital needs or those requiring readily available credit for general corporate purposes. Under Belgian law, the agreement must comply with specific regulatory requirements, including the Belgian Civil Code and the Code of Economic Law, as well as EU financial services regulations. The document typically includes comprehensive provisions covering facility terms, conditions precedent, representations, covenants, and security arrangements (if applicable). It is commonly used by Belgian companies seeking domestic or international financing, and can be structured as either a bilateral or syndicated facility. The revolving nature of the facility distinguishes it from term loans, as it allows borrowers to draw down, repay, and reborrow funds multiple times during the facility period, providing maximum flexibility within the agreed limit.

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

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions and Interpretation: Comprehensive list of defined terms and interpretation rules

4. The Facility: Details of the revolving credit facility, including amount, purpose, and availability period

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

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

7. Repayment and Prepayment: Terms for regular repayment and voluntary/mandatory prepayment provisions

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

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

10. Tax Gross Up and Indemnities: Provisions for tax-related payments and indemnities

11. Increased Costs: Provisions for dealing with changes in costs due to regulatory or legal changes

12. Representations: Borrower's representations and warranties

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

14. Financial Covenants: Financial ratios and other metrics the borrower must maintain

15. General Undertakings: General positive and negative covenants

16. Events of Default: Circumstances constituting default and consequences

17. Changes to Parties: Rules for assignments and transfers

18. Payment Mechanics: Technical provisions regarding payments

19. Notices: Communication procedures between parties

20. Calculations and Certificates: Rules for calculations and form of certificates

21. Governing Law and Jurisdiction: Choice of Belgian law and jurisdiction provisions