Document background
The Revolving Credit Facility Agreement is a crucial financing document used in the Philippine market when a borrower requires flexible access to funding on a revolving basis. This type of facility is particularly valuable for businesses with cyclical cash flows or working capital needs, as it provides the ability to draw down, repay, and re-borrow funds within a specified limit. The agreement must comply with Philippine banking regulations, including requirements set by the Bangko Sentral ng Pilipinas and the General Banking Law of 2000. It typically includes detailed provisions on facility mechanics, conditions for drawdown, interest calculations, security arrangements (if applicable), and various covenants to protect the lender's interests while facilitating the borrower's business operations. The document is structured to accommodate local legal requirements while following international banking standards and practices.
