Credit support agreement
Overview of this form
A Credit Support Agreement outlines the terms under which a partnership provides credit support to a lender, usually in the form of a Letter of Credit. This agreement is crucial in securing a loan, as it ensures that the lender has the necessary backing to protect their interests. Unlike other types of agreements, the Credit Support Agreement specifically focuses on the financial guarantees provided by the partners in the partnership.
What’s included in this form
- Identification of parties involved: Details on the general partnership and any corporations involved.
- Loan amount and terms: Specifies the amount of the loan and the related documents, such as the Promissory Note.
- Issuance of Letters of Credit: Outlines how Letters of Credit are pledged as security for the loan.
- Right to draw on Letters of Credit: Conditions under which the lender can draw funds from the Letters of Credit in case of default.
- Custodial Account establishment: Describes the creation of a Custodial Account for managing the funds associated with the credit support.
- Termination conditions: Details the circumstances under which the agreement can be terminated.
Common use cases
This form is used when a partnership is seeking a loan and the lender requires additional security in the form of a Credit Support Agreement. It is needed when a partnership wishes to reassure a lender of the financial backing they can provide, particularly when substantial sums are at stake, or when the lender is concerned about the creditworthiness of the partnership.
Intended users of this form
- Partnerships looking to secure a loan from a financial institution.
- General partners who are involved in the financial management of the partnership.
- Corporate entities acting as lenders requiring additional collateral from partnerships.
Completing this form step by step
- Identify the parties: Fill in the names and addresses of the partners and the lender.
- Specify loan details: Enter the loan amount and relevant terms from the Promissory Note.
- Provide Letter of Credit information: Include details about the Letter of Credit, including the issuing bank.
- Define the Custodial Account: Indicate where the Custodial Account will be held and the terms associated.
- Enter dates and signatures: Ensure all parties sign and date the document appropriately to formalize the agreement.
Does this form need to be notarized?
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Mistakes to watch out for
- Failing to include all necessary parties, which can invalidate the agreement.
- Inaccurately stating the loan amount or terms, leading to potential disputes.
- Neglecting to provide updated financial statements in accordance with the agreement requirements.
- Not signing or dating the document properly before submission.
Benefits of completing this form online
- Convenient access to the form that can easily be downloaded and filled out at your convenience.
- The ability to edit and customize the agreement to better fit your specific needs.
- Secure handling of sensitive information with data privacy protection in place.
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FAQ
Under a 1995 ISDA CSA the Credit Support Amount is the total amount one counterparty must have delivered to the other at any time: the combination of the Exposure to that party and the net Independent Amounts it must post, minus any agreed Threshold.
Net Asset Value Related Termination Triggers. Change in Investment Manager and Investment Guidelines Termination Events. Delivery of Financial Information. Cross-Default. Collateral Provisions. Other Agreements Between the Dealer and the Hedge Fund.
A Credit Support Annex, or CSA, is a legal document which regulates credit support (collateral) for derivative transactions.The Delivery Amount is the amount the Credit Support Amount exceeds the Value of all posted Collateral held by the Secured Party.
A credit support annex (CSA) is a document that defines the terms for the provision of collateral by the parties in derivatives transactions. It is one of four parts of a standard contract or master agreement developed by the International Swaps and Derivatives Association (ISDA).
A Credit Support Annex, or CSA, is a legal document which regulates credit support (collateral) for derivative transactions.The Delivery Amount is the amount the Credit Support Amount exceeds the Value of all posted Collateral held by the Secured Party.
A credit support annex (CSA) is a document that defines the terms for the provision of collateral by the parties in derivatives transactions. It is one of four parts of a standard contract or master agreement developed by the International Swaps and Derivatives Association (ISDA).
A credit support annex (CSA) is a document that defines the terms for the provision of collateral by the parties in derivatives transactions. It is one of four parts of a standard contract or master agreement developed by the International Swaps and Derivatives Association (ISDA).
"Threshold means, with respect to a party, the Base Currency Equivalent of the amount specified as such for that party in Paragraph 11(b)(iii)(B); if no amount is specified, zero. view template.