Credit Line Agreement


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									This Credit Line Agreement is a basic contract offering simple terms for the issuance of
a line of credit. This document in its draft form contains numerous of the standard
clauses commonly used in these types of agreements, as well as optional language to
allow for customization to ensure the specific terms of the parties’ agreement are
addressed. It is ideal for use by small businesses or other entities requiring basic legal
                                     CREDIT LINE AGREEMENT

This Credit Line Agreement is made as of this ___ day of _________, 20__ (“Credit Line
Agreement”), by and among _______________ (“Borrower”), whose address is
_______________________ and _________________ (“Creditor”), whose address is
____________________. This Credit Line Agreement establishes a line of credit in the amount of
____________ Dollars ($________) for Borrower. This line of credit will be subject to the
following terms and conditions:

1.      Borrower hereby applies for a line of credit that can be replenished by payment on
        amounts previously drawn. Borrower’s use of the line of credit establishes Borrower’s
        agreement with these terms and conditions.

2.      The credit limit approved shall be determined by the Creditor, and this line of credit will
        be drawn upon ____________________________. [Instruction: Include a description
        here of how the line of credit will be accessed.]

3.      The line of credit will be repaid in accordance with ____________________________.
        [Instruction: Include line of credit repayment guidelines here.]

4.      Outstanding balances on this line of credit will bear interest at the rate determined
        pursuant ____________________________. Instruction: Note here how the interest
        rate for this line of credit will be determined.]

5.      Borrower promises to pay any and all charges incurred by Borrower and by any person
        Borrower authorizes to use the line of credit. Borrower further agrees to pay any fees
        or charges assessed against Borrower for any services relating to this line of credit,
        including, but not limited to, fees or charges incurred in retrieving transaction data or
        monthly statements and any efforts to collect balances due on the line of credit

6.      Borrower understands that as holder of this line of credit, it can repay any outstanding
        balance prior to maturity, in whole or in part, without penalty.

7.      Borrower recognizes and agrees that Borrower will accept any other conditions
        established by Creditor that are necessary to protect the best interests of Creditor and
        to comply with applicable federal and state laws and regulations as they relate to the
        extension of this line of credit.

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8.      Borrower agrees that Creditor can change the terms of this agreement at any time. The
        new terms will apply to all transactions relating to this line of credit, including, but not
        limited to, cash advances, finance charges that accrue from line of credit balances, and
        any applicable fees. The Creditor will mail or deliver written notice of any change in the
        terms of this agreement unless Borrower has already agreed to the change, the change
        involves late payment charges, over-limit charges or return payment fees, or the change
        is a reduction of a finance or other charge.

9.      Borrower acknowledges and agrees that Creditor may terminate this agreement under
        the following conditions:

        A.      Upon adverse re-evaluation of Borrower’s credit worthiness;

        B.      Upon Borrower’s failure to satisfy the terms of this Credit Line Agreement and
                any other conditions established by Creditor per the terms and conditions of this
                Credit Line Agreement; and

        C.      At Borrower’s option or Creditor’s option with good cause.

10.     If Creditor terminates Borrower’s line of credit, Borrower shall receive written notice of
        such termination; however, Borrower understands and acknowledges that such
        termination shall not affect Borrower’s obligation to pay any outstanding balance.

11.     Borrower understands that Creditor will review Borrower’s line of credit file at least
        ____________________________. [Instruction: Include here the frequency with
        which Borrower’s credit file will be reviewed.]

12.      Borrower hereby gives permission to Creditor to investigate and reassess Borrower’s
        credit worthiness.

13.     Borrower understands that Borrower may need to re-apply for this line of credit if:

        A.      The credit limit is increased, or

        B.      The terms of payment are extended beyond the terms of this Credit Line

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14.     Borrower fully understands and agrees that if any outstanding balances under this
        Credit Line Agreement become delinquent or past due, Borrower’s line of credit issued
        under this Credit Line Agreement shall be revoked, unless Creditor determines that
        extenuating circumstances have contributed to the delinquency. Under such
        circumstances, Creditor may approve Borrower’s continued use of the line of credit.

15.     Borrower agrees that if Creditor must collect any amounts owed pursuant to this Credit
        Line Agreement through an attorney or by other legal means or to take any actions in
        bankruptcy court or other court in connection with this Credit Line Agreement,
        Borrower will pay all costs, including reasonable attorney’s fees.

       IN WITNESS WHEREOF, the Parties have executed this Credit Line Agreement as of
the day and year first written above.

                                      [Instruction: Type name of debtor here.]

                                      By: _____________________________
                                      Date: _____________________________

                                      [Instruction: Type name of creditor here.]

                                      By: _____________________________
                                      Date: _____________________________

Copyright © 2011 Docstoc Inc.                                                                    4

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