Intercompany Loan Agreement Template for Austria

The Intercompany Loan Agreement is a fundamental instrument used to formalize and document lending arrangements between affiliated companies within a corporate group. This document is particularly crucial in the Austrian legal context, where specific regulatory requirements govern intercompany financing, including transfer pricing regulations, stamp duty considerations, and corporate law compliance. The agreement is typically used when one group entity has excess funds to lend to another group entity requiring financing, whether for operational needs, expansion, or other corporate purposes. It includes essential provisions regarding loan amount, interest calculation (which must be at arm's length), repayment terms, events of default, and tax implications. The document must comply with Austrian civil law requirements for loan agreements while also addressing specific corporate and tax law considerations unique to intercompany arrangements in Austria.

1. Parties: Identification of the lender and borrower entities, including registration details and addresses

2. Background: Context of the intercompany loan and relationship between the parties

3. Definitions: Key terms used throughout the agreement, including financial definitions and calculation methodologies

4. The Loan: Core terms including loan amount, purpose, and drawdown mechanics

5. Interest: Interest rate, calculation method, payment dates, and default interest provisions

6. Repayment: Repayment schedule, prepayment terms, and payment mechanics

7. Representations and Warranties: Standard corporate representations and specific financial conditions

8. Covenants: Ongoing obligations of the borrower, including information provision and financial covenants

9. Events of Default: Circumstances constituting default and consequences

10. Tax Provisions: Transfer pricing compliance, withholding tax, and stamp duty provisions

11. Costs and Expenses: Allocation of costs related to the preparation and maintenance of the loan

12. Notices: Communication procedures between parties

13. Assignment and Transfer: Restrictions on transfer of rights and obligations

14. Governing Law and Jurisdiction: Confirmation of Austrian law governance and jurisdiction for disputes

15. Execution: Signature blocks and execution requirements