Credit Facility Agreement for Ireland

Credit Facility Agreement Template for Ireland

A Credit Facility Agreement governed by Irish law establishes the terms and conditions under which a lender provides credit facilities to a borrower. The agreement comprehensively details the facility amount, purpose, drawdown mechanics, repayment terms, interest calculations, and security arrangements. It incorporates specific provisions to ensure compliance with Irish financial regulations, including the Consumer Credit Act 1995 and relevant EU directives. The document includes representations, warranties, covenants, and events of default, structured to protect the lender while providing clear operational guidelines for the borrower.

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What is a Credit Facility Agreement?

The Credit Facility Agreement is a fundamental financing document used when a lender extends credit to a borrower in Ireland. It serves as the primary documentation for various types of credit arrangements, including term loans, revolving facilities, and multi-currency facilities. The agreement must comply with Irish financial services regulations, consumer protection laws, and relevant EU directives. It typically includes detailed provisions on facility terms, drawdown conditions, repayment obligations, security arrangements, and standard protections for the lender. This document is essential for both bilateral and syndicated lending arrangements and can be adapted for different business purposes, from working capital financing to acquisition funding. The agreement's structure reflects market practice in Ireland while incorporating necessary regulatory requirements and appropriate risk allocation between parties.

What sections should be included in a Credit Facility Agreement?

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

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

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

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

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

6. Drawdown: Procedures and requirements for utilizing the facility

7. Interest: Interest calculation, periods, and payment provisions

8. Repayment and Prepayment: Terms for scheduled repayments and voluntary/mandatory prepayments

9. Representations and Warranties: Borrower's confirmations about its status and capacity

10. Information Undertakings: Obligations to provide financial and other information

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

12. General Undertakings: Borrower's operational and business commitments

13. Events of Default: Circumstances that trigger default and lender's remedies

14. Changes to Parties: Rules for assignments and transfers

15. Payment Mechanics: Banking and administrative arrangements for payments

16. Notices: Communication procedures between parties

17. Miscellaneous: Standard boilerplate provisions

18. Governing Law and Jurisdiction: Confirms Irish law governance and jurisdiction

What sections are optional to include in a Credit Facility Agreement?

1. Security: Required if the facility is secured - details security arrangements and enforcement

2. Guarantee: Required if there are guarantors - terms of guarantee and indemnity

3. Accordion Facility: Optional provision allowing for future increase in facility amount

4. Multi-currency Provisions: Required if facility can be drawn in multiple currencies

5. Agency and Security Trustee Provisions: Required for syndicated facilities with an agent bank

6. Increased Costs and Tax Gross-up: More detailed provisions typically used in larger/syndicated facilities

7. Market Disruption: Provisions dealing with benchmark rate unavailability or market disruption

8. Sustainability-Linked Provisions: Required if facility includes sustainability-linked pricing mechanics

What schedules should be included in a Credit Facility Agreement?

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

2. Form of Drawdown Request: Template for borrower to request utilization of the facility

3. Form of Compliance Certificate: Template for periodic financial covenant compliance certification

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

5. Form of Transfer Certificate: Template for transferring commitments between lenders

6. Form of Assignment Agreement: Template for assigning rights under the agreement

7. Financial Covenant Calculations: Detailed methodology for calculating financial covenants

8. Existing Security: List of permitted existing security interests

9. Contact Details: Administrative and notice details for all parties

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

Ireland

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking

Financial Services

Real Estate

Manufacturing

Technology

Retail

Healthcare

Energy

Infrastructure

Telecommunications

Agriculture

Construction

Transportation

Hospitality

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Banking

Credit

Company Secretarial

Corporate Finance

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Compliance Officer

Risk Manager

Banking Relationship Manager

Credit Officer

Loan Officer

Corporate Banking Director

Finance Manager

Company Secretary

General Counsel

Banking Partner

Industries
Consumer Credit Act 1995 (as amended): Primary legislation governing consumer credit agreements in Ireland, setting out requirements for credit agreements, information disclosure, and consumer protections
European Union (Consumer Mortgage Credit Agreements) Regulations 2016: Implements the EU Mortgage Credit Directive, relevant if the credit facility is secured against residential property
Central Bank Act 1942 (as amended): Establishes regulatory framework for financial institutions and their activities in Ireland
Criminal Justice (Money Laundering and Terrorist Financing) Act 2010-2021: Sets out anti-money laundering requirements and due diligence obligations for financial institutions
European Union (Consumer Protection) Regulations 2020: Implements EU consumer protection rules, including requirements for fair terms in consumer contracts
Data Protection Act 2018: Implements GDPR in Ireland, crucial for handling personal data in credit agreements
Consumer Protection Code 2012: Central Bank's code setting out requirements for financial institutions in their dealings with consumers
European Communities (Unfair Terms in Consumer Contracts) Regulations 1995: Protects consumers against unfair terms in standard form contracts
Central Bank (Supervision and Enforcement) Act 2013: Provides for Central Bank's supervisory and enforcement powers over financial institutions
European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019: Requires identification and verification of beneficial owners in corporate lending
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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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