Financing Contract Agreement for Ireland

Financing Contract Agreement Template for Ireland

A comprehensive legal agreement governed by Irish law that establishes the terms and conditions under which a lender provides financial facilities to a borrower. The document incorporates essential elements required by Irish financial services regulations, including Central Bank requirements, consumer protection provisions where applicable, and necessary anti-money laundering compliance measures. It details the facility amount, purpose, drawdown conditions, repayment terms, security arrangements, representations, warranties, covenants, and events of default, while ensuring compliance with Irish contract law principles and financial services regulations.

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What is a Financing Contract Agreement?

The Financing Contract Agreement is a crucial legal document used in Ireland when establishing formal lending arrangements between financial institutions or lenders and borrowers. It serves as the primary document governing the terms and conditions of financial facilities, whether for corporate financing, asset acquisition, working capital, or specific project funding. The agreement must comply with Irish financial services regulations, including Central Bank requirements, consumer protection laws, and anti-money laundering provisions. It typically includes detailed sections on facility terms, conditions precedent, drawdown mechanics, repayment obligations, security arrangements, representations, warranties, and covenants. This document is essential for both regulated financial institutions and private lenders operating in Ireland, requiring careful consideration of both Irish domestic law and applicable EU regulations.

What sections should be included in a Financing Contract Agreement?

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

2. Background: Context of the financing arrangement and purpose of the facility

3. Definitions and Interpretation: Defined terms, rules of interpretation, and currency conventions

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

5. Conditions Precedent: Documents and conditions required before drawdown

6. Drawdown: Process and requirements for utilization of the facility

7. Interest: Interest rate, calculation periods, and payment terms

8. Repayment: Terms for repayment of principal and prepayment provisions

9. Fees and Expenses: All fees payable and allocation of costs

10. Tax Provisions: Tax-related obligations and gross-up provisions

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

12. Covenants: Positive and negative obligations of the borrower

13. Events of Default: Circumstances constituting default and consequences

14. Changes to Parties: Assignment and transfer provisions

15. Administration: Calculation of payments, business days, and communication methods

16. Governing Law and Jurisdiction: Choice of Irish law and jurisdiction provisions

17. Execution: Signature blocks and execution formalities

What sections are optional to include in a Financing Contract Agreement?

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

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

3. Insurance: Required for secured facilities or where specific insurance is needed - insurance requirements and provisions

4. Regulatory Compliance: Enhanced section required for regulated borrowers or specific regulated activities

5. Intercreditor Provisions: Required when there are multiple lenders or ranking of security

6. Property Provisions: Required when facility is secured by real estate - specific property-related covenants

7. Construction Provisions: Required for development or construction financing

8. Hedging Obligations: Required when interest rate or currency hedging is mandatory

9. Agency and Trust: Required in syndicated facilities with an agent or security trustee

What schedules should be included in a Financing Contract Agreement?

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

2. Schedule 2 - Form of Drawdown Request: Template for borrower to request utilization

3. Schedule 3 - Repayment Schedule: Amortization schedule if term loan

4. Schedule 4 - Form of Compliance Certificate: Template for periodic compliance reporting

5. Schedule 5 - Form of Transfer Certificate: Template for transferring loan participations

6. Schedule 6 - Financial Covenants: Detailed financial covenant calculations and definitions

7. Schedule 7 - Security Documents: List and forms of required security documents

8. Schedule 8 - Existing Security: Details of permitted existing security

9. Schedule 9 - Group Structure: Corporate structure chart of borrower group

10. Appendix A - Form of Legal Opinions: Required format for legal opinions

11. Appendix B - Form of Accession Deed: Template for additional parties joining the agreement

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

Financing Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking & Financial Services

Real Estate & Construction

Manufacturing

Technology

Healthcare

Retail

Energy & Utilities

Transportation & Logistics

Agriculture

Hospitality & Tourism

Education

Professional Services

Media & Entertainment

Telecommunications

Relevant Teams

Legal

Finance

Compliance

Risk Management

Treasury

Credit

Operations

Corporate Banking

Commercial Banking

Corporate Secretariat

Business Development

Investment

Relationship Management

Transaction Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Compliance Officer

Risk Manager

Treasury Manager

Credit Manager

Corporate Banker

Relationship Manager

Financial Controller

Company Secretary

Legal Director

Debt Finance Manager

Commercial Director

Operations Director

Managing Director

Business Development Manager

Investment Manager

Industries
Central Bank Act 1942-2018: Establishes the regulatory framework for financial institutions in Ireland and provides for the supervision of financial services
Consumer Credit Act 1995: Regulates consumer lending and provides protection for borrowers, including requirements for credit agreements and disclosure of information
European Union (Consumer Mortgage Credit Agreements) Regulations 2016: Implements EU Mortgage Credit Directive, governing residential mortgage lending practices
Criminal Justice (Money Laundering and Terrorist Financing) Act 2010-2021: Sets out AML/CFT requirements for financial institutions including customer due diligence obligations
European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019: Requires identification and verification of beneficial owners in corporate lending
Contract Law of Ireland: Common law principles governing formation and enforcement of contracts, including offer, acceptance, consideration, and capacity
Statute of Frauds (Ireland) 1695: Requires certain contracts, including those relating to land or guarantees, to be in writing
Personal Guarantee (Enforcement) Regulations: Governs the enforcement of personal guarantees in financing agreements
European Union (General Data Protection Regulation) 2016: Regulates the processing of personal data, including requirements for financial institutions handling customer information
Credit Reporting Act 2013: Establishes the Central Credit Register and regulates credit reporting obligations for lenders
European Communities (Markets in Financial Instruments) Regulations 2017: Implements MiFID II, relevant for certain types of financial contracts and services
Companies Act 2014: Relevant for corporate borrowers, including provisions on corporate capacity and authority to enter into financial agreements
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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