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Structure of a facility agreement

The detailed contents of a facility agreement will differ depending on a number of factors, including the type of facility being offered and what the facility is to be used for. However, most facility agreements will contain similar types of provisions, often arranged in a similar basic structure.

A facility agreement will typically include:

1. •

   information concerning the parties to the agreement, including their names, addresses and company numbers

2. •

   provisions dealing with the interpretation of the agreement and a list of defined terms used in it

3. •

   provisions relating to the facility itself, ie its nature and purpose

4. •

   mechanics relating to the borrowing and repayment of the facility, including any conditions and limitations

5. •

   provisions relating to costs, fees and other payment obligations

6. •

   representations and warranties

7. •

   undertakings (also known as covenants)

8. •

   events of default

9. •

   if additional credit support is required from related third parties, a guarantee

10. •

    on facilities with more than one lender, provisions for coordinating between lenders

11. •

    boilerplate