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What is a facility agreement?

A facility agreement is a contract between a borrower and a lender. The agreement sets out the terms and conditions of the agreement. Its often simply called a loan, credit facility agreement, or facility letter. A facility agreement is a short-term loan for a specific amount that does not require collateral.

Who drafts the facility agreement?

The lenders lawyers will usually, but not always, prepare the first draft of the facility agreement.

What is the difference between a lease and a facility use agreement?

Unlike a lease, it does not transfer an interest in the real property. It is personal to the licensee and any attempt to transfer the license terminates it. It is (usually) revocable and can be either exclusive or non- exclusive. A facility use agreement (FUA) is a short form license for very limited use of a facility.

What is a facilities service agreement?

An agreement for the supply of facilities management services, such as buildings and grounds maintenance, cleaning and security, at specified locations. It is drafted to be broadly neutral between the parties.

What is the difference between a facility agreement and a loan 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.

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