A credit agreement is a legal term used to define a type of an agreement which is made by and between two parties, one of which is the bank or any other financial institute and the other is the customer or client who requires a certain type of a loan. These agreements are drafted formally using a particular format and must be framed with the help and guidance of a legal advisor.
A credit agreement states the various rules and regulations which have to be abided by the involved parties along with the terms and conditions which are enforceable by law and must not be violated. Any credit agreement should have the details of the involved parties along with the starting and termination date of the agreement within which the agreement holds under law.
The most important use of a credit agreement is that one of the parties can make any claims which are not in accordance with the clauses mentioned in the agreement.
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Sample Credit Agreement
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