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Trade Finance Facility Agreement Template for Netherlands

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Key Requirements PROMPT example:

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."

Document background
The Trade Finance Facility Agreement is essential for businesses engaged in international trade that require financing support for their import-export activities. This document is specifically designed for use in the Netherlands, incorporating Dutch legal requirements and EU regulations. It is typically used when a company needs access to various trade finance instruments such as letters of credit, bank guarantees, or trade loans to facilitate their international trade operations. The agreement covers crucial elements including facility limits, conditions for utilization, security requirements, compliance obligations, and risk management provisions. It is particularly relevant in situations where Dutch companies engage in cross-border trade and require structured financing solutions from banks or financial institutions. The document ensures compliance with Dutch financial regulations, including the Financial Supervision Act (Wft) and anti-money laundering laws, while providing flexibility to accommodate various trade finance products and international trade practices.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























































Clauses







































Relevant Industries

Banking

Financial Services

International Trade

Commodities Trading

Manufacturing

Retail

Wholesale

Logistics

Import/Export

Shipping

Agriculture

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Trade Operations

Credit

Commercial Banking

Transaction Banking

Documentary Credits

Relationship Management

Relevant Roles

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

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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