��������Ƶ

A Loan Against Irrevocable LC agreement is a specialized financing instrument used in international trade transactions under Dutch law. This document is employed when a borrower requires financing secured against an irrevocable letter of credit, typically issued in connection with international trade transactions. The agreement establishes the terms under which a financial institution provides funding based on the security of an irrevocable LC, including specific provisions for disbursement, repayment, and security arrangements. It combines elements of traditional lending with trade finance mechanisms, incorporating requirements from Dutch financial regulations, EU directives, and international banking practices. The document is particularly relevant for businesses engaged in import/export activities, requiring short-term financing against their trade receivables backed by letters of credit.

1. Parties: Identification of the lender and borrower with full legal names and addresses

2. Background: Context of the loan arrangement and the underlying irrevocable letter of credit

3. Definitions: Definitions of key terms used throughout the agreement, including LC-specific terminology

4. Facility and Purpose: Details of the loan facility amount, purpose, and relationship to the LC

5. Conditions Precedent: Prerequisites for the loan disbursement, including LC documentation requirements

6. Drawdown Mechanics: Procedures and requirements for drawing down the loan facility

7. Interest and Fees: Interest rate, calculation method, and applicable fees

8. Repayment Terms: Repayment schedule, methods, and prepayment provisions

9. Security Arrangements: Assignment of LC proceeds and other security arrangements

10. Representations and Warranties: Standard and LC-specific representations by the borrower

11. Covenants: Borrower's ongoing obligations and restrictions

12. Events of Default: Circumstances constituting default and consequences

13. Bank's Rights and Remedies: Lender's rights upon default or in relation to the LC

14. Payments and Calculations: Payment mechanics, currency provisions, and calculation conventions

15. Changes to Parties: Assignment and transfer provisions

16. Notices: Communication requirements and contact details

17. General Provisions: Miscellaneous legal provisions including governing law and jurisdiction