Overdraft facility letter: single company borrower—bilateral—with or without a guarantee
Overdraft facility letter: single company borrower—bilateral—with or without a guarantee

The following Banking & Finance precedent provides comprehensive and up to date legal information covering:

  • Overdraft facility letter: single company borrower—bilateral—with or without a guarantee
  • 1 Facility by way of sterling overdraft
  • 2 Interest
  • 3 Purpose of the facility
  • 4 Payments under the facility
  • 5 Expiry of the facility
  • 6 Documents to be provided
  • 7 Fees and expenses
  • 8 Governing law and jurisdiction

Overdraft facility letter: single company borrower—bilateral—with or without a guarantee

[To be printed on the headed paper of the lender]

[insert date]

To:

[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:

    1. 1

      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).

    1. 2

      Interest

      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.

    1. 3

      Purpose of the facility

      This facility is to be used for [working capital purposes OR specify other purpose].

    1. 4

      Payments under the facility

      1. 4.1

        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

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