Bank Facilities

Course Outline:

• Overview (Scope of Banks)
• Bank Facilities- Definition<
• Bank Procedure to apply Bank Facilities
• Types of Bank Facilities (W. Capital/ Loan/ Uncommitted/ Committed)
• Products of Bank Facilities<
• a)Overdraft
• b)Letter of Credit (With Margin/ with Nil Margin)
• c)Trust Receipts/ STL to Finance Raw Material Payments
• d)Term Loans
• e)Capex Financing/ Refinancing
• f)Factoring
• g)PDC Discounting
• h)LC Discounting
• i)Collection Document (DA/DP)
• j)Bank Guarantees (Tender/ Performance Bond/ Financial G)
• k)Avalization of Draft

Securities/ Collaterals

• a)Promissory Notes
• b)Corporate Guarantees
• c)Negative Pledge in the case of CAPEX Financing
• d)Assignment of All Risk Insurance Policies (Bank Mortgaged Clause)
• e)Assignment of All Risk Insurance Policies (Bank Mortgaged Clause)
• f)Registered/ Notarized/ Non Notarized Mortgaged/ Pledge
• g)General Floating Charge over Inventory/ Plants/ Equipment’s
• h)Lien
• Interest Rates & Charges (EIBOR/LIBOR)
• Event of Default Clauses
• Bank Covenants
• General Covenants
• Financial Covenants
• Practical Examples/ Question & Answer Session