Revolving Credit Loan Agreement for Malta

Revolving Credit Loan Agreement Template for Malta

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Revolving Credit Loan Agreement

"I need a Revolving Credit Loan Agreement governed by Maltese law for a €5 million facility between our bank and a medium-sized manufacturing company, with quarterly interest payments and a first-ranking charge over the borrower's equipment as security."

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What is a Revolving Credit Loan Agreement?

This Revolving Credit Loan Agreement is designed for use in Malta when establishing a flexible borrowing arrangement where funds can be drawn, repaid, and redrawn over time. It's particularly suitable for businesses requiring ongoing access to working capital or funding for cyclical operations. The agreement must comply with Maltese financial services regulations, including the Banking Act and Financial Institutions Act, and may need to incorporate consumer protection provisions if the borrower is a consumer. The document typically includes comprehensive terms on facility limits, interest calculations, drawdown procedures, security arrangements, and covenant packages. It can be adapted for both bilateral and syndicated lending arrangements and can incorporate additional features such as multiple currencies or tranches as required by the transaction structure.

What sections should be included in a Revolving Credit Loan Agreement?

1. Parties: Identification of the Lender and Borrower with full legal names and addresses

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

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. The Facility: Core terms of the revolving credit facility including amount, purpose, and availability period

5. Drawdown Conditions: Conditions precedent and procedural requirements for drawdowns

6. Interest and Fees: Interest calculation, payment terms, and applicable fees

7. Repayment and Prepayment: Terms for repayment, prepayment rights and conditions

8. Representations and Warranties: Borrower's representations and warranties

9. Covenants: Positive and negative covenants of the Borrower

10. Events of Default: List of events of default and their consequences

11. Changes to Parties: Assignment and transfer provisions

12. Administration: Operational aspects including calculations, notices, and payments

13. General Provisions: Miscellaneous legal provisions including amendments, waivers, and severability

What sections are optional to include in a Revolving Credit Loan Agreement?

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

2. Guarantees: Required if there are guarantors - terms of guarantee

3. Multiple Borrowers: Required for multiple borrowers - joint and several liability provisions

4. Tax Gross-Up and Indemnities: Detailed tax provisions for cross-border or complex arrangements

5. Increased Costs: provisions for regulatory changes affecting the lender's costs

6. Set-off Rights: Detailed set-off provisions for use with sophisticated borrowers

7. Bank Accounts: Required if specific account arrangements are needed

8. Currency Provisions: Required for multi-currency facilities

What schedules should be included in a Revolving Credit Loan Agreement?

1. Conditions Precedent: List of required documents and conditions for initial drawdown

2. Form of Drawdown Request: Template for borrower to request drawdowns

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

4. Repayment Schedule: If applicable, schedule of repayment dates and amounts

5. Fee Schedule: Detailed breakdown of all applicable fees

6. Financial Covenants: Detailed financial covenants and calculations

7. Security Documents: List and copies of security documents if facility is secured

8. Permitted Security: List of security interests permitted under 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

Relevant legal definitions
Clauses
Relevant Industries

Banking

Financial Services

Real Estate

Manufacturing

Retail

Technology

Healthcare

Construction

Hospitality

Energy

Transportation

Agriculture

Professional Services

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit

Corporate Banking

Operations

Commercial Banking

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Lawyer

Legal Counsel

Relationship Manager

Credit Officer

Risk Manager

Compliance Officer

Financial Controller

Banking Officer

Corporate Secretary

Managing Director

Account Manager

Finance Manager

Industries
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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