North Carolina Post-Petition Loan and Security Agreement between Various Financial Institutions regarding revolving line of credit

• Category: Corporations - Public - Loans
• State: Multi-State
• Control #: US-EG-9368
• Format: Word; Rich Text

Description

Post-Petition Loan and Security Agreement between Various Financial Institutions, Bank of America, N.A., Fruit of the Loom, Inc., Fruit of the Loom, Ltd. and Domestic Subsidiaries of Fruit of the Loom, Inc. regarding revolving line of credit dated Keywords: North Carolina, post-petition loan, security agreement, financial institutions, revolving line of credit. Introduction: A North Carolina Post-Petition Loan and Security Agreement between various financial institutions is a legal document that governs the terms and conditions of a revolving line of credit provided to a debtor who has filed for bankruptcy under Chapter 11. This agreement ensures that the financial institutions have security interests in the debtor's assets and outlines the conditions for granting loans during the post-petition phase. Types of North Carolina Post-Petition Loan and Security Agreements: 1. Secured Revolving Line of Credit Agreement: This type of agreement allows a debtor to access a revolving line of credit with the financial institution(s) acting as lenders. It ensures that the loan is secured by the debtor's assets, providing collateral for the lenders' protection. The agreement stipulates the amount, terms, interest rates, repayment schedule, and other key provisions. 2. Collateralized Post-Petition Financing Agreement: In this agreement, the financial institutions are providing post-petition financing to the debtor with the assets of the bankruptcy estate serving as collateral. The agreement defines the scope and conditions of the collateral, ensuring the lenders' interests are protected in the event of default. 3. Revolving Credit Facility Agreement: This agreement establishes a revolving line of credit that the debtor can access multiple times as needed. The financial institutions commit to making funds available to the debtor up to a pre-approved credit limit. The agreement outlines the terms, conditions, and restrictions regarding the availability, usage, and repayment of funds. 4. Intercreditor Agreement: An intercreditor agreement comes into play when multiple financial institutions are collectively providing financing to a debtor. This agreement establishes the hierarchy of payment priority among lenders, ensuring equitable distribution in the event of default or liquidation. Key Elements of a North Carolina Post-Petition Loan and Security Agreement: 1. Loan Amount and Purpose: The agreement specifies the maximum loan amount and the intended purpose for which the funds will be used. 2. Interest Rates and Fees: The interest rates, fees, and other charges associated with the revolving line of credit are clearly defined in the agreement. 3. Security Interest: The agreement outlines the assets or collateral against which the lenders hold a security interest. These assets provide assurance to the lenders in case of default. 4. Covenants: The agreement includes covenants that the debtor must adhere to, such as maintaining adequate insurance, filing required reports, complying with laws, and maintaining financial ratios. 5. Repayment Terms: The agreement provides details about the repayment terms, including the repayment schedule, frequency, and methods of payment. 6. Default and Remedies: The agreement defines the events that constitute default and outlines the remedies available to the lenders in the event of default, such as acceleration of debt, foreclosure, or appointment of a receiver. Conclusion: A North Carolina Post-Petition Loan and Security Agreement between various financial institutions is a critical legal document that establishes the terms, conditions, and security provisions for a revolving line of credit during the post-petition phase of a Chapter 11 bankruptcy. It ensures that both parties are protected and have a clear understanding of their rights and obligations.

Keywords: North Carolina, post-petition loan, security agreement, financial institutions, revolving line of credit. Introduction: A North Carolina Post-Petition Loan and Security Agreement between various financial institutions is a legal document that governs the terms and conditions of a revolving line of credit provided to a debtor who has filed for bankruptcy under Chapter 11. This agreement ensures that the financial institutions have security interests in the debtor's assets and outlines the conditions for granting loans during the post-petition phase. Types of North Carolina Post-Petition Loan and Security Agreements: 1. Secured Revolving Line of Credit Agreement: This type of agreement allows a debtor to access a revolving line of credit with the financial institution(s) acting as lenders. It ensures that the loan is secured by the debtor's assets, providing collateral for the lenders' protection. The agreement stipulates the amount, terms, interest rates, repayment schedule, and other key provisions. 2. Collateralized Post-Petition Financing Agreement: In this agreement, the financial institutions are providing post-petition financing to the debtor with the assets of the bankruptcy estate serving as collateral. The agreement defines the scope and conditions of the collateral, ensuring the lenders' interests are protected in the event of default. 3. Revolving Credit Facility Agreement: This agreement establishes a revolving line of credit that the debtor can access multiple times as needed. The financial institutions commit to making funds available to the debtor up to a pre-approved credit limit. The agreement outlines the terms, conditions, and restrictions regarding the availability, usage, and repayment of funds. 4. Intercreditor Agreement: An intercreditor agreement comes into play when multiple financial institutions are collectively providing financing to a debtor. This agreement establishes the hierarchy of payment priority among lenders, ensuring equitable distribution in the event of default or liquidation. Key Elements of a North Carolina Post-Petition Loan and Security Agreement: 1. Loan Amount and Purpose: The agreement specifies the maximum loan amount and the intended purpose for which the funds will be used. 2. Interest Rates and Fees: The interest rates, fees, and other charges associated with the revolving line of credit are clearly defined in the agreement. 3. Security Interest: The agreement outlines the assets or collateral against which the lenders hold a security interest. These assets provide assurance to the lenders in case of default. 4. Covenants: The agreement includes covenants that the debtor must adhere to, such as maintaining adequate insurance, filing required reports, complying with laws, and maintaining financial ratios. 5. Repayment Terms: The agreement provides details about the repayment terms, including the repayment schedule, frequency, and methods of payment. 6. Default and Remedies: The agreement defines the events that constitute default and outlines the remedies available to the lenders in the event of default, such as acceleration of debt, foreclosure, or appointment of a receiver. Conclusion: A North Carolina Post-Petition Loan and Security Agreement between various financial institutions is a critical legal document that establishes the terms, conditions, and security provisions for a revolving line of credit during the post-petition phase of a Chapter 11 bankruptcy. It ensures that both parties are protected and have a clear understanding of their rights and obligations.