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Credit Enhancement Agreement
"I need a Credit Enhancement Agreement under Austrian law for a parent company guarantee supporting a €50 million project finance facility, where the parent company is a German multinational corporation and the project company is an Austrian renewable energy developer."
1. Parties: Identification of the parties including the credit enhancer, beneficiary, and primary obligor
2. Background: Context of the agreement, reference to underlying obligations, and purpose of the credit enhancement
3. Definitions and Interpretation: Definitions of key terms, interpretation rules, and references to relevant Austrian legal concepts
4. Credit Enhancement Structure: Core provisions detailing the nature, scope, and mechanics of the credit enhancement
5. Conditions Precedent: Prerequisites that must be satisfied before the credit enhancement becomes effective
6. Representations and Warranties: Standard and specific representations by all parties
7. Payment Terms and Mechanics: Details of payment obligations, timing, currency, and payment procedures
8. Enforcement Rights: Procedures and rights for enforcing the credit enhancement
9. Events of Default: Circumstances constituting default and consequences
10. Termination Events: Circumstances allowing early termination and procedures
11. Tax Provisions: Treatment of taxes, withholding requirements, and gross-up obligations
12. Governing Law and Jurisdiction: Confirmation of Austrian law governance and jurisdiction arrangements
13. Notices: Communication procedures and contact details
14. General Provisions: Standard boilerplate including severability, amendments, and entire agreement provisions
1. Collateral Arrangements: Required when the credit enhancement involves specific collateral or security interests
2. Regulatory Compliance: Needed when parties are subject to specific regulatory requirements or when the arrangement requires regulatory approval
3. Counter-Indemnity: Include when the credit enhancer requires indemnification from the primary obligor
4. Information Rights: Detailed reporting requirements when ongoing monitoring is required
5. Assignment and Transfer: Include when transfer rights are important for the commercial arrangement
6. Currency Provisions: Required for cross-border transactions involving multiple currencies
7. Step-In Rights: Include when the credit enhancer may need to take control of underlying assets or projects
8. Subordination Provisions: Needed when the agreement must address priority of payments or claims
1. Form of Demand: Template for making claims under the credit enhancement
2. Conditions Precedent Documents: List of required documentation and evidence
3. Fee Schedule: Detailed breakdown of fees, costs, and expenses
4. Calculation Methods: Specific formulae and methods for calculating payments or exposure
5. Form of Notices: Standard forms for various notices required under the agreement
6. Underlying Obligations: Details of the obligations being enhanced or supported
7. Security Documents: Forms of any required security documentation
8. Compliance Certificates: Templates for periodic compliance certification
Authors
Additional Credit Support
Affiliate
Applicable Law
Austrian Banking Act
Authorized Representative
Banking Day
Base Currency
Beneficiary
Business Day
Credit Enhancement
Credit Enhancement Amount
Credit Enhancement Fee
Credit Enhancement Period
Credit Event
Credit Provider
Credit Support Assets
Default Interest
Default Notice
Demand
Effective Date
Enforcement Event
Event of Default
Exposure
Finance Documents
Financial Indebtedness
Force Majeure Event
Guaranteed Obligations
Implementation Date
Indemnified Party
Interest Period
Legal Reservation
Material Adverse Effect
Notice of Demand
Notification Time
Obligor
Payment Date
Permitted Security
Principal Documents
Rating Agency
Reference Bank Rate
Regulatory Event
Relevant Jurisdiction
Security
Security Interest
Specified Currency
Subsidiary
Support Documents
Tax
Term
Termination Date
Transaction Documents
Transfer Certificate
Underlying Agreement
Underlying Obligation
Interpretation
Conditions Precedent
Credit Enhancement Mechanism
Payment Obligations
Representations and Warranties
Covenants
Events of Default
Enforcement Rights
Security Interests
Indemnification
Tax Provisions
Regulatory Compliance
Information Rights
Confidentiality
Assignment and Transfer
Notices
Amendment and Waiver
Severability
Force Majeure
Termination Rights
Dispute Resolution
Governing Law and Jurisdiction
Entire Agreement
Counterparts
Third Party Rights
Currency Provisions
Set-off Rights
Further Assurance
Costs and Expenses
Banking
Financial Services
Infrastructure
Real Estate
Energy
Construction
Manufacturing
Project Finance
Private Equity
Insurance
Telecommunications
Transport
Legal
Finance
Treasury
Risk Management
Compliance
Credit Analysis
Corporate Finance
Structured Finance
Project Finance
Banking Operations
Securities
Transaction Management
Chief Financial Officer
Treasury Manager
Risk Manager
Credit Risk Officer
Legal Counsel
Finance Director
Corporate Finance Manager
Structured Finance Manager
Credit Manager
Compliance Officer
Project Finance Director
Banking Relationship Manager
Senior Credit Analyst
Transaction Manager
Securities Officer
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