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[To be printed on the headed paper of the Lender]

[insert date]

To:

[insert name and address of Borrower]

Dear [insert name of borrower],

We are pleased to advise you (the Company) that we are prepared to make available to you [against the guarantee of [insert name of guarantor] (the Guarantor) (the Guarantee)] an overdraft facility on the following terms and conditions:

1. 1. 1

      Facility by way of sterling overdraft

      This facility is available by way of a sterling overdraft on your current account with us up to an amount of £[•] ([•] sterling).

   1. 2

      Interest

      Interest will be calculated in respect of the amount for the time being overdrawn under this facility on the basis of a 365-day year and for the actual number of days elapsed, at a rate equal to our base rate from time to time plus [•]% ([•] per cent) a year and will be payable both before and after judgment. Interest so calculated will be payable [monthly] in arrears.

   1. 3

      Purpose of the facility

      This facility is to be used