This loan facility template agreement is typically used in an intercompany transaction between a group company that has excess cash or operates as an in-house bank (i.e. the ‘lender’) and a group company that requires funds (i.e. the ‘borrower’). In this particular agreement lender makes a loan facility available to the lender from which the latter can draw during a certain time frame, for a specific purpose.

This agreement template is used to state the rights and responsibilities and to substantiate the at arm’s length character of the transaction between a typical lender and borrower. Common terms in this agreement template inter alia cover the term of the loan facility, interest and payment, repayment conditions, guarantees, representations and warranties and liability for breach.