The Credit Facility Agreement is a fundamental financing document used when a lender (typically a bank or financial institution) agrees to provide credit to a borrower in Malta. It serves as the primary document governing the lending relationship, detailing crucial elements such as facility limits, drawdown mechanisms, interest calculations, repayment schedules, and security requirements. The agreement must comply with Maltese banking laws and financial services regulations, including the Banking Act and Financial Institutions Act. It's particularly important for business financing, property acquisition, and working capital facilities. The document includes comprehensive provisions for events of default, enforcement mechanisms, and remedies available under Maltese law, making it essential for both secured and unsecured lending transactions.

1. Parties: Identification of the lender(s) and borrower(s) with full legal names and addresses

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

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

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

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

6. Drawdown: Procedures and requirements for drawing down the facility

7. Interest: Interest rate, calculation methods, and payment provisions

8. Repayment: Terms for repayment of the facility

9. Prepayment: Provisions for early repayment and any associated fees

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

11. Covenants: Positive and negative obligations of the borrower

12. Events of Default: Circumstances constituting default and consequences

13. Changes to Parties: Rules for assignment and transfer of rights/obligations

14. Payments: Payment mechanics, currency, and set-off rights

15. Notices: Communication methods and contact details

16. Calculations and Certificates: Rules for calculations and evidential value of certificates

17. General Provisions: Miscellaneous legal provisions including severability and amendments

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