Overline Of Credit Agreement Template for Philippines

The Overline of Credit Agreement is a crucial financial instrument in Philippine banking, designed for businesses requiring flexible access to funds beyond their standard credit limits. This document is typically used when a company has demonstrated strong creditworthiness and requires additional working capital or operational funding flexibility. The agreement must comply with Philippine banking regulations, particularly the General Banking Law of 2000 and BSP circulars governing credit facilities. It includes comprehensive terms covering credit limits, drawdown procedures, interest calculations, security requirements, and compliance obligations. The document is essential for businesses seeking to establish or expand their credit facilities with Philippine financial institutions, providing a legally robust framework for managing enhanced credit arrangements.

1. Parties: Identification of the Lender (Financial Institution) and the Borrower, including complete legal names and addresses

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

3. Definitions: Definitions of key terms used throughout the agreement, including financial terms and technical banking terminology

4. The Facility: Details of the overline credit facility, including amount, purpose, and basic terms

5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

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

7. Interest and Fees: Interest rate calculation, payment terms, and applicable fees

8. Repayment: Terms and conditions for repayment, including payment schedule and methods

9. Security: Details of any security or collateral required for the facility

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

11. Covenants: Positive and negative obligations of the borrower during the facility period

12. Events of Default: Circumstances that constitute default and their consequences

13. Termination: Conditions and process for terminating the facility

14. Miscellaneous: Standard legal provisions including notices, amendments, governing law, and jurisdiction