Concept, Essential Terms and Form
A term loan facility in Georgia is built on the loan contract regulated by the Civil Code of Georgia: under Article 623 the lender transfers money or another generic thing into the borrower's ownership, and the borrower undertakes to return a thing of the same kind, quality and quantity. What makes the facility "term" is that the repayment date is fixed in advance: under Article 626, where the loan is defined by a term in advance, both the principal and the interest must be paid when that term falls due. This structure distinguishes the term loan from demand arrangements, where repayment is triggered by termination of the contract rather than by a calendar date.
As to form, a loan contract is concluded orally, although the parties may agree on written form under Article 624. Written form matters in practice because the authenticity of an oral loan contract cannot be established by witness testimony alone. For any significant amount, documenting the loan terms and the transfer of funds is therefore not a formality but the borrower's core evidentiary protection in a future dispute.