What does facility mean in loan?
an arrangement where a person or organization can borrow money up to a particular amount if and when they need it: The industry was granted a government-backed 410m loan facility to prevent it from going bust.
What is a loan vs facility agreement?
In other words, a facility is a credit card that you may make repayments on depending on the used amount of credit. A loan is one amount that is borrowed from a lender or a banking institute. This is different because these are key numbers borrowed.
What is an example of force majeure in a contract?
What is an example of a Force Majeure? Typical Force Majeure events include natural causes (fire, storms, floods), governmental or societal actions (war, invasion, civil unrest, labor strikes), infrastructure failures (transportation, energy), etc.
What is a loan agreement?
A lending agreement (loan agreement) is a formal contract between a lender and a borrower. Lending agreements spell out all the details of the loan, such as the principal amount, interest rate, amortization period, term, fees, payment terms and any covenants.
What are the types of loan agreement?
There are two types of loan agreements: unsecured and secured loan agreements.
What is the definition facility agreement?
Also known as a loan or credit facility agreement or facility letter. An agreement or letter in which a lender (usually a bank or other financial institution) sets out the terms and conditions (including the conditions precedent) on which it is prepared to make a loan facility available to a borrower.
What is force majeure in facility agreement?
Force majeure precludes the liability of borrowers for default during a certain period of time, i.e. until the force majeure event ends. Facility and loan agreements sometimes contain force majeure provisions, usually in relation to payment.
What is an example of force majeure notice?
On [DATE] our manufacturing facility in [LOCATION] was severely damaged by [Hurricane, Storm, Electrical Fire, or Other Specific Cause Listed or Described as a Force Majeure Event in the Parties Commercial Agreement], resulting in a [Complete; Partial] shutdown of the facility.
What is the difference between loan agreement and facility agreement?
A loan agreement is regarded as a contract res (contrat rel) that is, a contract which can only be entered into if the lender effectively transfers the funds to the borrower, while a facility agreement is a mere promise of a loan, in other words a promise to transfer the funds to the borrower on his request, the
What are force majeure situations?
Common examples of force majeure events include acts of war, terrorist attacks, epidemics, pandemics like COVID-19, death, labor strikes, riots, crime or property theft, acts of God, natural disasters (like blizzards, earthquakes, or hurricanes), or acts of terrorism.
