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a credit agreement also called a loan agreement or facility agreement is the main agreement in a commercial lending transaction it can be very long often between 100 to 200 pages and it sets out any ongoing obligations of the parties as well as the availability and terms of the underlying loan loans are sometimes called credit facilities loan facilities or just facilities and a borrower could have access to more than one loan under a single credit agreement like a Term Loan and a revolver or a single Term Loan might be broken up into multiple tranches each with its own details if a borrower plans to use each tranche for a different purpose lawyers for the lender usually prepare the initial draft of the credit agreement often starting from the banks preferred form or a precedent from a similar transaction but sometimes the borrowers council takes the lead in drafting though this is rare it happens most often when a borrower is a company thats owned or being acquired by a private Equi