Omnibus Loan And Security Agreement for India

Omnibus Loan And Security Agreement Template for India

An Omnibus Loan and Security Agreement under Indian law is a comprehensive financing document that combines multiple credit facilities and security arrangements into a single agreement. It is structured to comply with Indian banking regulations, corporate laws, and security creation requirements. The agreement covers various aspects including term loans, working capital facilities, and other credit arrangements, along with detailed security provisions governed by Indian legislation such as the SARFAESI Act, Transfer of Property Act, and Companies Act. This document streamlines the documentation process by consolidating what would otherwise be multiple separate agreements into one master agreement, while ensuring compliance with Indian legal and regulatory requirements.

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What is a Omnibus Loan And Security Agreement?

The Omnibus Loan and Security Agreement is primarily used in corporate financing transactions where multiple credit facilities and various forms of security are required. This document type is particularly relevant in the Indian legal context, where it must comply with specific regulatory requirements including those set by the Reserve Bank of India, registration requirements under the Companies Act, and security enforcement provisions under the SARFAESI Act. It is commonly used when a borrower requires different types of financing (such as term loans, working capital facilities, or letter of credit facilities) and is providing multiple forms of security to the lender(s). The agreement consolidates all these arrangements into a single document, simplifying administration and ensuring consistency across all facilities while maintaining compliance with Indian legal requirements.

What sections should be included in a Omnibus Loan And Security Agreement?

1. Parties: Identification of the lender(s), borrower(s), and any guarantors or security providers

2. Background: Context of the agreement, relationship between parties, and purpose of the facilities

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

4. Facilities: Details of all loan facilities being made available, including types, amounts, and purpose

5. Conditions Precedent: Conditions that must be satisfied before any utilization of the facilities

6. Utilization: Process and requirements for drawing down the facilities

7. Interest and Fees: Interest rates, calculation methods, fees, and other charges applicable to the facilities

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

9. Security: Creation and terms of all security interests being granted

10. Representations and Warranties: Statements of fact and assurances given by the borrower and security providers

11. Covenants: Positive and negative obligations of the borrower and security providers

12. Events of Default: Circumstances constituting default and consequences thereof

13. Enforcement: Rights and remedies of the lender upon default, including SARFAESI Act provisions

14. Changes to Parties: Provisions regarding assignments, transfers, and additions of parties

15. Administration: Operational aspects including notices, calculations, and payment mechanics

16. Governing Law and Jurisdiction: Choice of law and jurisdiction for dispute resolution

What sections are optional to include in a Omnibus Loan And Security Agreement?

1. Intercreditor Provisions: Required when multiple lenders are involved, establishing priority and sharing arrangements

2. Currency Provisions: Needed for facilities involving foreign currency or cross-border elements

3. Tax Provisions: Detailed tax clauses required when tax implications are significant or cross-border elements exist

4. Security Trustee Provisions: Required when a security trustee structure is used for multiple lenders

5. Guarantee: Included when third-party guarantees form part of the security package

6. Insurance: Detailed insurance requirements when specific insurance coverage is critical for the security

7. Agency Provisions: Required in syndicated facilities with an agent bank structure

What schedules should be included in a Omnibus Loan And Security Agreement?

1. Facility Particulars: Detailed terms and conditions specific to each facility

2. Security Details: Comprehensive description of all security assets and special terms

3. Conditions Precedent Documents: List of all required documentation and conditions

4. Form of Utilization Request: Standard form for drawing down facilities

5. Repayment Schedule: Detailed repayment dates and amounts for each facility

6. Security Documents: Forms of additional security documents to be executed

7. Notice Forms: Standard forms for various notices under the agreement

8. Financial Covenants: Detailed financial covenants and calculation methodologies

9. Security Perfection Requirements: List of registration and perfection requirements for each security

10. Existing Encumbrances: List of permitted existing security interests

11. Contact Details: Contact information for all parties and authorized representatives

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

India

Publisher

Genie AI

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking & Financial Services

Manufacturing

Real Estate & Construction

Infrastructure

Healthcare

Technology

Retail & Consumer Goods

Energy & Utilities

Telecommunications

Transportation & Logistics

Agriculture & Food Processing

Hospitality & Tourism

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit

Corporate Banking

Transaction Management

Operations

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Compliance Officer

Risk Manager

Credit Manager

Relationship Manager

Transaction Manager

Security Trustee Officer

Facility Agent

Company Secretary

Financial Controller

Head of Corporate Banking

Senior Credit Analyst

Industries
Indian Contract Act, 1872: Fundamental law governing contract formation, validity, and enforcement in India. Essential for the basic structure and enforceability of the loan agreement.
Transfer of Property Act, 1882: Governs creation and enforcement of security interests in immovable property, including mortgages and charges.
Registration Act, 1908: Specifies registration requirements for documents creating security interests in immovable property.
Companies Act, 2013: Governs creation and registration of charges by companies, including requirements for filing with the Registrar of Companies.
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI): Provides framework for enforcement of security interests by financial institutions without court intervention.
Recovery of Debts Due to Banks and Financial Institutions Act, 1993: Establishes special tribunals for expeditious adjudication of matters relating to recovery of debts due to banks and financial institutions.
Indian Stamp Act, 1899: Governs stamp duty payable on loan and security documentation.
Foreign Exchange Management Act, 1999: Relevant if there are any foreign currency components or cross-border elements in the loan transaction.
Reserve Bank of India Act, 1934: Contains regulations regarding lending activities and interest rates applicable to various types of loans.
Information Technology Act, 2000: Relevant for electronic execution and maintenance of loan documentation, if applicable.
Teams

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