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Revolving Line Of Credit Agreement Template for Netherlands

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Key Requirements PROMPT example:

Revolving Line Of Credit Agreement

"I need a Dutch law Revolving Line of Credit Agreement for a €50 million secured facility to be provided by a syndicate of banks to a manufacturing company, with both EUR and USD drawing capabilities and an accordion feature to increase the facility up to €75 million."

Document background
The Revolving Line of Credit Agreement is a fundamental financing document used when a borrower requires flexible access to funding for working capital or general corporate purposes. This agreement, governed by Dutch law and compliant with the Netherlands' financial regulatory framework, establishes a facility under which the borrower can repeatedly draw down, repay, and redraw funds up to a maximum committed amount. The document covers essential elements including facility terms, conditions precedent, operational mechanics, pricing, security (if applicable), and ongoing obligations of the parties. It's particularly suitable for businesses with cyclical cash flows or varying capital needs, providing more flexibility than a term loan. The agreement incorporates requirements under Dutch financial regulations, including the Financial Supervision Act (Wet op het financieel toezicht) and relevant EU regulations implemented in Dutch law.
Suggested Sections

1. Parties: Identification of the lender(s) and borrower(s), including full legal names and registered addresses

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

3. Definitions: Detailed definitions of terms used throughout the agreement

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

5. Drawing and Repayment: Mechanics of drawing down the facility and making repayments

6. Interest and Fees: Interest calculation, payment dates, and applicable fees

7. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

8. Representations and Warranties: Statements of fact and assurances given by the borrower

9. Covenants: Ongoing obligations of the borrower, including financial covenants and information requirements

10. Events of Default: Circumstances that would trigger default and remedies available to the lender

11. Changes to Parties: Rules regarding assignment and transfer of rights and obligations

12. Administration: Administrative aspects including calculations, notices, and communications

13. Governing Law and Jurisdiction: Choice of Dutch law and jurisdiction provisions

14. Execution: Signature blocks and execution formalities

Optional Sections

1. Security: Required when the facility is secured by collateral or guarantees

2. Accordion Feature: Optional provision allowing for future increase in facility amount

3. Multiple Currencies: Required when the facility can be drawn in different currencies

4. Tax Provisions: Detailed section needed when cross-border elements exist

5. Regulatory Compliance: Enhanced section needed for regulated borrowers

6. Subordination: Required when the facility needs to be subordinated to other debt

7. Financial Calculations: Detailed calculation provisions needed for complex financial covenants

8. Market Disruption: Required for facilities with floating interest rates

Suggested Schedules

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

2. Form of Drawing Notice: Template for borrower to request drawings under the facility

3. Form of Compliance Certificate: Template for periodic compliance reporting

4. Calculation of Interest and Fees: Detailed methodology for calculating interest and fees

5. Security Documents: List and copies of security documents if facility is secured

6. Permitted Security: List of security interests permitted under the agreement

7. Financial Covenants: Detailed financial covenant calculations and thresholds

8. Know Your Customer Requirements: List of required KYC documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




































































Clauses


































Relevant Industries

Banking

Financial Services

Corporate Lending

Investment Banking

Commercial Banking

Private Equity

Manufacturing

Retail

Real Estate

Technology

Healthcare

Energy

Infrastructure

Transportation

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Banking

Loan Operations

Transaction Management

Portfolio Management

Financial Control

Corporate Finance

Deal Advisory

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Corporate Banker

Relationship Manager

Credit Risk Manager

Legal Counsel

Financial Controller

Corporate Finance Manager

Compliance Officer

Credit Analyst

Portfolio Manager

Transaction Manager

Corporate Finance Associate

Banking Lawyer

Finance Operations Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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