Document background
Running Account Credit Agreements are essential financial instruments in the Canadian lending landscape, used to establish ongoing credit facilities between financial institutions and their customers. These agreements are particularly relevant when parties need to establish a revolving credit arrangement where the borrower can repeatedly draw down, repay, and redraw funds up to an approved limit. The document must comply with strict Canadian federal and provincial regulatory requirements, including the Interest Act, Bank Act, and provincial consumer protection legislation. It contains comprehensive details about credit limits, interest calculations, fee structures, repayment terms, and default provisions. This type of agreement is commonly used for business credit lines, retail credit accounts, and merchant facilities, requiring careful attention to disclosure requirements and consumer protection provisions under Canadian law.
