New offer letter clause for credit facilities
Here is a sample clause for a new offer letter for credit facilities:
Credit Facilities
[Company Name] ("Lender") is pleased to offer [Borrower Name] ("Borrower") the following credit facilities:
- Term Loan: A term loan in the principal amount of [Loan Amount] with a repayment term of [Repayment Term] years, bearing interest at a rate of [Interest Rate]% per annum.
- Revolving Credit Facility: A revolving credit facility in the principal amount of [Revolving Credit Amount] with a repayment term of [Revolving Credit Repayment Term] years, bearing interest at a rate of [Interest Rate]% per annum.
- Overdraft Facility: An overdraft facility in the principal amount of [Overdraft Amount] with a repayment term of [Overdraft Repayment Term] years, bearing interest at a rate of [Interest Rate]% per annum.
Terms and Conditions
The credit facilities shall be governed by the following terms and conditions:
- The Borrower shall repay the credit facilities in accordance with the repayment schedule set forth in Exhibit A.
- The Borrower shall pay interest on the outstanding principal amount of the credit facilities at the rate specified above.
- The Borrower shall maintain a minimum cash balance of [Minimum Cash Balance] in the account(s) used for the credit facilities.
- The Borrower shall not pledge or assign the credit facilities or any part thereof without the prior written consent of the Lender.
- The Borrower shall comply with all applicable laws and regulations in connection with the use of the credit facilities.
- The Borrower shall provide the Lender with such financial statements and other information as the Lender may reasonably request from time to time.
Security
The Borrower hereby grants to the Lender a security interest in all of the Borrower's assets, including but not limited to accounts receivable, inventory, equipment, and real property, to secure the repayment of the credit facilities.
Default
If the Borrower fails to comply with any of the terms and conditions of the credit facilities, the Lender may, at its option, declare the entire principal amount of the credit facilities immediately due and payable.
Governing Law
This offer letter and the credit facilities shall be governed by and construed in accordance with the laws of [State/Country].
Entire Agreement
This offer letter and the credit facilities constitute the entire agreement between the parties and supersede all prior negotiations, understandings, and agreements between the parties.
Amendments
This offer letter and the credit facilities may not be amended or modified except in writing signed by both parties.
Acceptance
By signing below, the Borrower accepts the credit facilities and agrees to be bound by the terms and conditions set forth in this offer letter.
Acceptance Date
[Acceptance Date]
Borrower's Signature
[Signature of Borrower]
Lender's Signature
[Signature of Lender]
Exhibit A: Repayment Schedule
[Insert repayment schedule]
Note: This is just a sample clause and should be reviewed and customized to fit the specific needs and circumstances of your company and the borrower. It's also recommended to have a lawyer review the clause before using it.