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Commercial Credit Agreement

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					This Commercial Credit Agreement allows a company to access a pre-approved amount
of money from a lender at any time. This agreement should be used by a company to
ensure that the company is able to meet its financial obligations and fund its day-to-day
business. Additionally, commercial credit can be used to fund new start-up businesses
and help existing businesses pay for unanticipated costs.
                                 Commercial Credit Agreement


This Commercial Credit Agreement ("Agreement") is made as of _____________ [Instructions:
Insert date] by and between _____________ [Instructions: Insert name of party], a
_____________ [Instructions: Insert type of business association] located at _____________
[Instructions: Insert address] (hereinafter “Company”) and _____________ [Instructions:
Insert name of lender] located at _____________ [Instructions: Insert address] (hereinafter
“Lender”).

The Company has applied to the Lender for a line of credit and the Lender is prepared to provide
such credit to the Company on the terms set forth herein.

Therefore, the parties hereto hereby agree as follows:


1. Credit. The Lender agrees to loan to the Company the principal amount of _____________
   [Instructions: Insert amount of loan] dollars ($_____________ [Instructions: Insert
   number]) on the basis designated in the preamble hereto (the "Loan"). The Loan is
   evidenced by a note executed and delivered by the Company to the Lender and bearing the
   date _____________ [Instructions: Insert date of note] (the "Note") [Comment: User can
   use a different means of evidencing the loan]. The Company has executed and delivered or
   has caused to be executed and delivered, to the Lender, at or before the time of execution
   hereof,              the           associated            documents,              including
   _____________________________________________ [Instructions: set forth all
   associated documents] (the "Associated Documents"). The terms and provisions of the Note
   and each of the Associated Documents executed by the Company are hereby incorporated
   herein by reference.


2. Loan Advances and Repayment. Advances and repayments of the Loan shall be as follows:
   A. Loan principal shall bear interest and shall be due and payable as set forth in the Note.
      The Company may borrow, repay and re-borrow amounts hereunder provided that the
      aggregate principal amount outstanding shall not, at any time, exceed the amount of the
      Loan. Advances on the principal of the loan are at the sole discretion of the Lender. As
      such, Lender may decide to approve or disapprove of any advance to the Company.


3. Warranties. The Company hereby warrants to the Lender that:
   A. Organization Type. The Company is a _____________ [Instructions: Insert type of
      business association. e.g. corporation, partnership].
   B. The Company is organized, is in good standing and is registered under the laws of the
      state of _____________ [Instructions: Insert state] its state organizational I.D. Number
      is _____________ [Instructions: Insert number]. [Comment: If the Company is a
      partnership or other entity that is not required to register with the state, User
         should set forth the Company's office location].
    C.   Authority to Bind Company. The Note and the Associated Documents have been duly
         authorized by all necessary action, will not violate any provision of law or of its
         organizational documents, or result in a breach of or constitute a default under, or result
         in a lien, charge or encumbrance upon any property or assets of the Company pursuant to
         any agreement or instrument to which the Company is a party or by which the Company
         or its property may be bound or affected. This Agreement, the Note and the Associated
         Documents, when executed by the Company and delivered to the Lender, will constitute
         legal and binding obligations of the Company, enforceable in accordance with their
         respective terms.
    D.   Trade Names. The Company is doing business under the name _____________
         [Instructions: Insert name] and does not use any other trade names except
         _____________ [Instructions: Insert any trade names, if applicable]. Any assumed or
         fictitious name registration required by law has been accomplished. The Company will
         notify the Lender in writing at least _____________ [thirty (30)] [Comment: This
         number is not provided for by law, but can be any number the user chooses] days
         prior to any change in its name.
    E.   Financial Circumstance. The Company has furnished to the Lender its most current
         financial statements, which statements represent correctly and fairly the results of the
         operations and transactions of the Company as of the dates and for the periods referred to
         and have been prepared in accordance with generally accepted accounting principles
         consistently applied during each interval involved and from period to period. From the
         date of such financial statements to the date of the execution of this Agreement, there
         have not been any material adverse changes in the financial condition of the Company.
    F.   Taxes. The Company, and if the Company is a partnership, each general partner of the
         Company, has duly filed all federal and other tax returns required to be filed and has
         duly paid all taxes required by such returns. Neither the Company nor any general
         partner, if the Company is a partnership, has received any notice from the Internal
         Revenue Service or any other taxing authority relating to the payment of additional taxes
         (including interest and penalties) in excess of _____________ [Instructions: Insert
         amount].
    G.   ERISA. All of Company's Defined Benefit Pension Plans, as defined in the Employment
         Retirement Income Security Act of 1974 ("ERISA"), as amended, meet, as of the date
         hereof, the minimum funding standards of Section 302 of ERISA, and, with respect to all
         of Company's Employee Benefit Plans, as defined in ERISA, no Reportable Event or
         Prohibited Transaction (as defined in ERISA) has occurred, except only such events or
         transactions as have been previously reported to the Lender in writing.
    H.   Litigation. There is no pending or threatened action or proceeding against or affecting
         the Company before any court, governmental agency or arbitrator which is not covered
         by insurance that could result in payment of _____________ [Instructions: Insert
         amount of any potential liability related to litigation] or more if adversely
         determined.
    I.   Required Events. The following conditions must be met before the obligation of the
         Lender to make the loan arises:
          i. The Lender shall have received a certified copy of all partnership, corporate, or
               limited liability company action taken by the Company to authorize the execution,


© Copyright 2012 Docstoc Inc.                                                                     3
              delivery and performance of this Agreement, the Note, the Associated Documents
              (as applicable) and the borrowing by it hereunder, all of which shall be subject to the
              Lender's approval.
         ii. The Lender shall have received an opinion of counsel of the Company, in form and
              substance satisfactory to the Lender and its counsel, as to the matters referred to in
              Section 3, and further to the effect that this Agreement, the Note and the Associated
              Documents have been duly authorized, executed, and delivered and are the legal and
              binding agreements of the Company enforceable in accordance with their respective
              terms.
         iii. With respect to subsequent advances (in addition to the Lender's absolute discretion
              to decline advances under a Line of Credit), it shall be a condition precedent that no
              event of default specified in this agreement, and no event which, with the giving of
              notice or lapse of time or both, would become such an event of default, shall have
              occurred and be continuing.
         iv. All legal matters incident to the transaction hereby contemplated shall be
              satisfactory to the Lender and its counsel.


4. Affirmative Agreements.
   A. The Company shall furnish the Lender with financial statements. All financial statements
       delivered hereunder shall be prepared on the basis of generally accepted accounting
       principles and practices applied on a basis consistent with those used in the preparation
       of the financial statements of the Company;
   B. Lawsuits. The Company shall promptly notify the Lender in writing as soon as the
       Company has knowledge of any threatened or pending litigation or governmental or
       regulatory proceeding against, or investigation of, the Company, the outcome of which
       may have a material or adverse affect on the finances or operations of the Company;
   C. Taxes. The Company shall promptly pay and discharge all of its taxes, assessments, and
       other governmental c
				
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Description: This Commercial Credit Agreement allows a company to access a pre-approved amount of money from a lender at any time. This agreement should be used by a company to ensure that the company is able to meet its financial obligations and fund its day-to-day business. Additionally, commercial credit can be used to fund new start-up businesses and help existing businesses pay for unanticipated costs.