Board Resolution Format for Renewal of Cc Limit

BOARD RESOLUTION: RENEWAL OF CASH CREDIT (CC) FACILITY

Document ID: BR-FIN-202X-001
Effective Date: [Date]
Version: 1.0
Governing Jurisdiction: [Insert State/Country]

LEGAL COMPLIANCE NOTICE

This document is intended for use by a corporate entity to formalize the renewal of banking credit facilities. This template is provided for informational purposes and constitutes legal information, not legal advice. The user must consult with qualified local counsel to ensure compliance with specific jurisdictional corporate statutes (e.g., Delaware General Corporation Law, Companies Act, etc.) and the specific requirements of the lending financial institution, which may require specific language in their own standardized forms.

CERTIFIED EXTRACT OF THE MINUTES OF THE MEETING OF THE BOARD OF DIRECTORS OF [COMPANY FULL LEGAL NAME]

HELD ON: [Date] AT [Time]
LOCATION: [Principal Address of Registered Office]

PRESENT:

• [Director Name 1] (Chairperson)
• [Director Name 2]
• [Director Name 3]

1. RECITALS

WHEREAS, [Company Full Legal Name] (the "Company") maintains a Cash Credit (CC) Facility (the "Facility") with [Bank Name] (the "Lender") in the sanctioned amount of [Amount in USD] to satisfy the Company’s working capital requirements;

WHEREAS, the existing Facility is approaching its maturity/expiry date and the Board deems it necessary and in the best interest of the Company to renew said Facility to ensure continued operational liquidity;

NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

2. RESOLUTIONS

2.1. APPROVAL OF RENEWAL. The Board hereby authorizes the renewal of the Cash Credit Facility with the Lender for an aggregate principal amount not to exceed [Amount in USD] (the "Limit") for a further period of [Number] months/years, subject to the terms and conditions prescribed by the Lender.

2.2. AUTHORIZATION OF DOCUMENTS. The Board hereby authorizes [Name(s) of Authorized Signatory(ies)], holding the position(s) of [Title(s)], (each an "Authorized Signatory") to negotiate, execute, deliver, and perform all agreements, security documents, promissory notes, hypothecation deeds, and other instruments required by the Lender to give effect to the renewal of the Facility.

2.3. CREATION OF SECURITY. To secure the Facility, the Company is authorized to create a charge/lien over its current assets, including but not limited to inventory, book debts, and receivables, as may be required by the Lender, and to file all necessary notices of charge with the relevant Registrar of Companies or filing body.

2.4. RATIFICATION. Any acts performed by the Authorized Signatories prior to the date of this Resolution that are consistent with the objective of renewing the Facility are hereby ratified, confirmed, and approved in all respects.

2.5. SEAL AND RECORDS. The Secretary of the Company is authorized to affix the Common Seal of the Company, if required, to any such documents in accordance with the Articles of Association, and to furnish a certified copy of these resolutions to the Lender.

CERTIFICATION

I, [Name of Secretary/Director], [Title] of [Company Full Legal Name], do hereby certify that the foregoing is a true and correct copy of the resolution duly passed by the Board of Directors of the Company at a meeting held on the date first above mentioned, and that said resolution has not been modified, rescinded, or revoked and is in full force and effect.

FOR [COMPANY FULL LEGAL NAME]:

Signature: _____________________________________
Printed Name: [Authorized Signatory Name]
Title: [Title / Role]
Date: [Date]

STEP-BY-STEP EXECUTION & FILING GUIDE

1. Preparation (Microsoft Word/Google Docs):

   • Replace all bracketed fields [...] with the specific data points. Ensure the "Amount" matches the figure approved by the bank's sanction letter.
   • Verify that the names of the Authorized Signatories match the persons empowered by the Company’s Articles of Association or prior Board appointments.

2. Verification of Authority:

   • Review the Company’s Articles of Association to ensure the Board has the specific power to borrow and pledge assets without requiring a separate General Meeting of Shareholders (Extraordinary General Meeting).

3. Execution:

   • Digital: Use a platform like DocuSign or Adobe Sign. Ensure the "Audit Trail" feature is enabled to capture the IP address and timestamp of the signatory.
   • Physical: If signing in wet ink, the document must be signed in the presence of a witness (if required by local law) and the Company Seal must be affixed if the Articles mandate it.

4. Lender Submission:

   • The bank will generally require a "Certified True Copy." This means a Director or the Company Secretary must sign the document and potentially certify it with a stamp stating "Certified True Copy."

5. Record Retention:

   • File the executed original in the "Corporate Statutory Minute Book."
   • Upload a digital duplicate to the Company’s permanent document management system (e.g., SharePoint, Box) with a retention policy of at least 7 years post-maturity of the Facility.