Wednesday, 19 June 2013

Revolving Letter of Credit

This sample letter is written to inform potential clients of a financial institution of the availability of credit facility as offered by the said financial institution. The letter states the terms and conditions of the offered credit facility for the interested party’s consideration. The conditions are minimal to encourage the borrower to consider taking up this credit loan offer.

July 1, 2013

Ferdinand K. Dupont

178 Jennifer Lane
Raleigh, NC 27604
Dear Sir

Re: Revolving Credit Facility

FIRST NATION BANK (the “Lender”) is pleased to inform you that our financial institution is able to offer you the benefit of establishing a revolving credit facility for your convenience with the terms and conditions as mentioned below:

BORROWER:    Ferdinand K. Dupont (the “Borrower”).

CREDIT FACILITY:  Revolving Credit Line of maximum $100,000 (the “Credit”)

PURPOSE:    Business Expansion

INTEREST:    There is an interest of 7% per annum based on the loan amount with overdue interest on a monthly computation basis, payable on the first of each month during the Credit period.

TERM AND MATURITY:    The Credit is repayable on demand.

AVAILMENT:     October 1, 2010

SECURITY:    One guarantor required.

AFFIRMATIVE COVENANTS:    In conjunction to the Credit loan, the Borrower is obliged to fulfill the following, until the Credit is paid in totality.

a)     Borrower will submit annual financial statements to the Lender

NEGATIVE COVENANTS:    In conjunction to the Credit loan, the Borrower is obliged not to do the following without the Lender’s prior consent in writing.

a)     Borrower may not execute any other Credit facility with another financial institution.

Please contact the undersigned for an immediate execution of the Credit facility.

Yours truly,

A.J. Tucker


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