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Trade Finance Facility Agreement
"I need a Trade Finance Facility Agreement under Dutch law for a €50 million revolving facility between ABC Bank N.V. as lender and XYZ Trading B.V. as borrower, with specific provisions for documentary credits and bank guarantees to support international commodity trading."
1. Parties: Identification of the lender(s), borrower(s), and any guarantors or security providers
2. Background: Context of the trade finance facility, purpose, and commercial relationship
3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation
4. The Facility: Details of the trade finance facility, including type, amount, and purpose
5. Utilisation: Conditions and procedures for drawing down the facility
6. Interest and Fees: Interest rates, calculation methods, and all applicable fees
7. Repayment and Prepayment: Terms for repayment, prepayment options, and related conditions
8. Trade Finance Documents: Requirements for underlying trade documents and their processing
9. Representations and Warranties: Statements of fact and assurances given by the borrower
10. Undertakings: Ongoing obligations of the borrower throughout the facility period
11. Events of Default: Circumstances that constitute default and their consequences
12. Changes to Parties: Rules for assignment, transfer, and delegation
13. Administration: Administrative aspects including calculations, notices, and payments
14. Governing Law and Enforcement: Choice of law and jurisdiction provisions
1. Security: Required when the facility is secured by collateral or guarantees
2. Sanctions and Anti-Money Laundering: Detailed compliance requirements for high-risk transactions or jurisdictions
3. Multiple Currency Provisions: Required when the facility allows for multiple currency drawings
4. Syndication Provisions: Required for facilities involving multiple lenders
5. Islamic Finance Provisions: Required when the facility needs to be Shariah-compliant
6. Agency Provisions: Required when a facility agent is appointed to manage the facility
7. Insurance: Required when specific insurance coverage is mandatory for the trade goods
1. Conditions Precedent: List of documents and conditions required before facility utilization
2. Form of Utilisation Request: Standard form for requesting drawings under the facility
3. Form of Trade Finance Documents: Templates for letters of credit, guarantees, or other trade instruments
4. Calculation of Interest and Fees: Detailed methodology for calculating interest and fees
5. Form of Transfer Certificate: Standard form for transferring rights and obligations
6. Contact Details: List of authorized contacts and notice details for all parties
7. Existing Security: Details of any existing security arrangements
8. Form of Compliance Certificate: Template for periodic compliance reporting
Authors
Banking
Financial Services
International Trade
Commodities Trading
Manufacturing
Retail
Wholesale
Logistics
Import/Export
Shipping
Agriculture
Legal
Finance
Treasury
Risk Management
Compliance
Trade Operations
Credit
Commercial Banking
Transaction Banking
Documentary Credits
Relationship Management
Trade Finance Manager
Corporate Banker
Legal Counsel
Finance Director
Treasury Manager
Risk Manager
Compliance Officer
Credit Manager
Commercial Director
Chief Financial Officer
Import/Export Manager
Trade Operations Manager
Documentary Credits Specialist
Relationship Manager
Transaction Banking Officer
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