Ontario Revolving Credit Agreement
Provide revolving credit facilities to a corporate borrower with this Revolving Credit Agreement for Ontario lenders.
- The Agreement allows the borrower to borrow and reborrow funds up to a stated maximum amount.
- The purpose of the credit facility is to finance the borrower's general operations, and the borrower agrees not to use the funds for any other purpose.
- The borrower grants the lender a first priority security interest over all of the borrower's personal property, and a guarantee and postponement of claim from a principal of the borrower, as security for repayment.
- Representations and warranties from both the borrower and the guarantor, including environmental warranties.
- The guarantor must maintain a specified ratio of current assets to current liabilities, and of total liabilities to tangible net worth.
- The total amount due may be repaid without penalty at any time.
- This legal document is intended for use in the Province of Ontario, Canada.
Last Updated: 21-January-2021