Current account template agreement 

A current account agreement is an agreement that is frequently used in business and commercial life. In the current account agreement, the parties are constantly creditor or debtor to each other due to a legal reason or relationship. Using this agreement, the parties have the opportunity to have some kind of exchange, discharging mutual claims and debts to each other separately. In this aspect, the current account agreement is both a means of payment and undertakes the function of guaranteeing mutual claims. 

Please note that the current account agreement is meant for advances of relatively low amounts, not long-term loans. For long term loans, the loan facility template agreement would be more appropriate (please see: https://transferpricingweb.com/product/loan-facility-template-agreement/).

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 in a current account relationship. Common terms in this agreement template inter alia cover the term of the facility, duration and termination, payment, prepayment and repayment conditions and warranties.