ABL Credit Facility Term Sheet

The ABL Credit Facility Term Sheet under USA law is a legal template that outlines the terms and conditions for an asset-based lending (ABL) credit facility agreement. This document is typically used by financial institutions and borrowers to establish a framework for lending funds based on the borrower's assets, such as accounts receivable, inventory, or equipment, as collateral.

The term sheet provides a concise summary of the key provisions and terms negotiated between the parties, serving as a preliminary agreement before drafting a more detailed loan agreement. It typically includes information such as the loan amount, interest rate, maturity date, borrowing base calculation, collateral requirements, covenants, loan fees, and repayment terms.

Under USA law, the term sheet incorporates legal provisions that ensure compliance with applicable federal, state, and local regulations, including consumer protection, anti-discrimination, and lending laws. It also establishes the jurisdiction and venue for resolving potential disputes, as well as the governing law that will be applied to interpret and enforce the agreement.

This legal template serves as a starting point for negotiations, allowing parties to assess the basic terms before engaging in more extensive due diligence and finalizing the loan agreement. It provides a clear and structured overview of the proposed ABL credit facility, enabling parties to make informed decisions and proceed with the loan process in a legally compliant manner under USA law.