Free Sample Credit Line Agreement Template
Sample Credit Line Agreement
This Credit Line Agreement (hereinafter referred to as the "Agreement") is made and entered into as of the [date], by and between [Lender's Name], a [Lender's State] corporation with principal offices located at [Lender's Address] (hereinafter referred to as "Lender") and [Borrower’s Name], a [Borrower's State] corporation with principal offices located at [Borrower's Address] (hereinafter referred to as "Borrower").
1. Purpose
The purpose of this Agreement is to establish the terms and conditions under which Lender agrees to make available to Borrower a revolving line of credit in the aggregate principal amount not to exceed [credit limit] (the "Credit Line").
2. Definitions
2.1 "Credit Line"
"Credit Line" shall mean the revolving line of credit extended by Lender to Borrower under the terms of this Agreement.
2.2 "Advance"
"Advance" shall mean any disbursement of funds by Lender to Borrower under the Credit Line.
3. Credit Line Terms
3.1 Credit Limit
The maximum limit of the Credit Line that Borrower may draw upon shall not exceed [credit limit].
3.2 Interest Rate
The outstanding principal balance under this Credit Line shall accrue interest at an annual rate equal to [interest rate] (the "Interest Rate").
3.3 Repayment Terms
Borrower shall repay each Advance, together with interest thereon, as per the repayment schedule set forth in Exhibit A attached hereto and made a part hereof.
4. Conditions Precedent
The obligation of Lender to provide Advances under this Agreement is subject to the satisfaction of the following conditions precedent:
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Lender's receipt of duly executed copies of this Agreement and all related documents.
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Borrower’s compliance with all covenants and conditions described herein.
5. Default
Each of the following shall constitute a default ("Event of Default") under this Agreement:
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Non-payment of any sum due under this Agreement.
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Failure to comply with any other terms or conditions stipulated in this Agreement.
6. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of [State], without giving effect to its conflict of laws principles.
7. Miscellaneous
This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized representatives as of the date first above written.
Signatures
Party A:
Party B:
