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Revolving Credit Loan Agreement Template for Belgium

A Belgian law-governed Revolving Credit Loan Agreement is a comprehensive financing document that establishes a flexible borrowing arrangement where a borrower can draw down, repay, and re-draw loans up to an agreed facility limit. The agreement incorporates specific Belgian legal requirements and banking regulations, including compliance with the Belgian Civil Code and Economic Law provisions. It details the terms and conditions of the facility, including drawdown mechanics, interest calculations, repayment terms, security arrangements (if applicable), and the rights and obligations of all parties involved. The document includes specific provisions for Belgian law enforcement and jurisdiction.

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What is a Revolving Credit Loan Agreement?

This Revolving Credit Loan Agreement template is designed for use in Belgian-law governed financing transactions where a borrower requires flexible access to credit on a revolving basis. The document is typically used for corporate financing needs such as working capital, general corporate purposes, or acquisition financing. It incorporates all necessary elements required under Belgian law, including specific provisions of the Belgian Civil Code and the Belgian Code of Economic Law. The agreement can be adapted for both bilateral and syndicated lending arrangements and includes options for secured and unsecured facilities. It addresses key aspects such as availability periods, interest calculations, regulatory compliance, and enforcement mechanisms specific to the Belgian jurisdiction.

What sections should be included in a Revolving Credit Loan Agreement?

1. Parties: Identification of the lender(s), borrower(s), and any other parties to the agreement

2. Background: Context of the revolving credit facility and purpose of the agreement

3. Definitions and Interpretation: Defined terms, interpretation rules, and Belgian law-specific terminology

4. The Facility: Core terms of the revolving credit facility, including amount, purpose, and availability period

5. Conditions Precedent: Conditions that must be satisfied before drawdown

6. Utilisation: Process and requirements for drawing down the facility

7. Repayment and Prepayment: Terms for repayment, mandatory and voluntary prepayment provisions

8. Interest: Interest calculation, periods, payment dates, and default interest

9. Fees: Commitment fees, arrangement fees, and other applicable charges

10. Tax Gross Up and Indemnities: Tax-related provisions and associated indemnities

11. Increased Costs and Mitigation: Provisions for dealing with changes in costs and mitigation obligations

12. Representations and Warranties: Standard and transaction-specific representations and warranties

13. Information Undertakings: Ongoing information and reporting requirements

14. Financial Covenants: Financial maintenance and incurrence covenants

15. General Undertakings: Positive and negative undertakings of the borrower

16. Events of Default: Circumstances constituting default and consequences

17. Changes to Parties: Transfer and assignment provisions

18. Administration: Payment mechanics, calculations, and notices

19. Governing Law and Enforcement: Belgian law as governing law and enforcement provisions

What sections are optional to include in a Revolving Credit Loan Agreement?

1. Security: Required if the facility is secured, detailing security package and enforcement rights

2. Guarantee: Required if there are guarantors supporting the borrower's obligations

3. Agent and Security Agent Provisions: Required for syndicated facilities with an agent bank

4. Majority Lenders Provisions: Required for syndicated facilities, defining voting rights and decision-making

5. Currency Provisions: Required if multiple currencies are permitted under the facility

6. Break Costs: Required if fixed rate periods are permitted

7. Market Disruption: Optional provisions for dealing with market disruption events

8. Sustainability-Linked Provisions: Optional for inclusion of ESG or sustainability-linked metrics

What schedules should be included in a Revolving Credit Loan Agreement?

1. Conditions Precedent: Detailed list of required conditions precedent documents

2. Form of Utilisation Request: Standard form for drawdown requests

3. Form of Transfer Certificate: Standard form for transfers between lenders

4. Form of Compliance Certificate: Template for periodic compliance certification

5. Existing Security: List of permitted existing security (if applicable)

6. Form of Accession Letter: Standard form for new parties joining the agreement

7. Financial Covenant Calculations: Detailed methodology for financial covenant calculations

8. Timetables: Operational timelines for notices, payments, and other actions

9. Contact Details: Contact information for all parties and notice details

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Belgium

Publisher

黑料视频

Document Type

Credit Agreement

Sector

Banking

Cost

Free to use

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