The following Banking & Finance precedent provides comprehensive and up to date legal information covering:
[To be printed on the headed paper of the lender]
[insert name and address of borrower]
Dear [insert name of borrower],
We are pleased to advise you (the Company) that we are prepared to make available to you [against the guarantee of [insert name of guarantor] (the Guarantor) (the Guarantee)] an overdraft facility on the following terms and conditions:
Facility by way of sterling overdraft
This facility is available by way of a sterling overdraft on your current account with us up to an amount of £[•] ([•] sterling).
Interest will be calculated in respect of the amount for the time being overdrawn under this facility on the basis of a 365–day year and for the actual number of days elapsed, at a rate equal to our base rate from time to time plus [•]% ([•] per cent) a year and will be payable both before and after judgment. Interest so calculated will be payable [monthly] in arrears.
Purpose of the facility
This facility is to be used for [working capital purposes OR specify other purpose].
Payments under the facility
All payments by you under this facility are to be made in immediately available funds free and clear of, and without any withholding or deduction for, any and all present or future taxes, duties or other charges unless
Free trials are only available to individuals based in the UK
Complete all the fields above to proceed to the next step.
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
Parliamentary committeesIP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to
Drafting—2009 ActThe Perpetuities and Accumulations Act 2009 effectively disapplies the rule against perpetuities from future easements granted on or after 6 April 2010, so a draftsman now need not be concerned to specify a perpetuity period. Any restrictions on the exercise of the easement
Sale of treasury sharesA limited company may hold, or deal with, shares in itself, if certain conditions set out in the Companies Act 2006 (CA 2006) are met. Those shares are held in treasury and referred to as the company's treasury shares.The treasury shares regime is set out in CA 2006, ss
Arbitration agreements—definition, purpose and interpretationThis Practice Note considers the nature and scope of arbitration agreements with a particular focus on arbitration agreements pursuant to the law of England and Wales, although it also discusses the concept from an international
0330 161 1234