The Line of Credit Contract is a crucial financial instrument in Malta's commercial landscape, providing businesses and individuals with flexible access to credit from financial institutions. This document is essential when parties wish to establish an ongoing borrowing relationship where funds can be borrowed repeatedly up to a predetermined limit, rather than a one-time loan. The agreement must comply with Malta's robust financial services regulatory framework, including the Banking Act (Chapter 371), Financial Institutions Act (Chapter 376), and relevant EU directives. It is particularly useful for managing working capital, funding seasonal business fluctuations, or providing emergency liquidity. The document includes comprehensive terms covering facility limits, interest calculations, security arrangements, drawdown mechanisms, and compliance requirements, all within the context of Maltese law and banking practices.

1. Parties: Identifies the lender and borrower with their full legal names, registration details, and addresses

2. Background: Explains the context of the agreement and the parties' intention to enter into a line of credit arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Facility Details: Specifies the credit limit, purpose, and nature of the revolving facility

5. Interest and Fees: Details the interest rate(s), calculation method, fees, and charges applicable to the facility

6. Drawdown: Specifies the procedures and conditions for requesting and receiving advances under the facility

7. Repayment Terms: Sets out the terms for repayment, minimum payments, and payment scheduling

8. Securities and Guarantees: Details any security interests, guarantees, or collateral required to secure the facility

9. Representations and Warranties: Lists the borrower's representations regarding their legal and financial status

10. Covenants: Specifies ongoing obligations of the borrower, including financial covenants and reporting requirements

11. Events of Default: Defines circumstances constituting default and the lender's remedies

12. Termination: Outlines conditions and procedures for terminating the facility

13. Governing Law and Jurisdiction: Specifies Maltese law as governing law and establishes jurisdiction for disputes