Intra Group Loan Agreement Template for Austria

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Key Requirements PROMPT example:

Intra Group Loan Agreement

"I need an Intra Group Loan Agreement governed by Austrian law for a €5 million unsecured loan from our parent company to a wholly-owned manufacturing subsidiary, with quarterly interest payments and full repayment by March 2025."

Document background
The Intra Group Loan Agreement is essential for corporate groups operating in or from Austria that need to implement internal financing arrangements between group entities. It is commonly used when a parent company, holding company, or designated group treasury entity provides financing to subsidiaries or other group members. The document ensures compliance with Austrian corporate law requirements, particularly regarding capital maintenance rules, transfer pricing regulations, and corporate benefit considerations. The agreement includes provisions for loan amount, interest calculation, drawdown mechanics, repayment terms, and necessary corporate approvals. It is designed to be adaptable for various types of intra-group financing while maintaining compliance with Austrian legal and regulatory requirements, including documentation requirements for related party transactions.
Suggested Sections

1. Parties: Identification of the lender and borrower entities within the group structure

2. Background: Context of the intra-group loan, relationship between parties, and purpose of the loan

3. Definitions: Definitions of key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the loan amount and permitted uses of the loan proceeds

5. Interest: Interest rate, calculation method, and payment terms

6. Drawdown: Conditions and procedures for drawing down the loan

7. Repayment: Terms and schedule for repayment of the principal

8. Representations and Warranties: Standard representations by both parties, including corporate authority and capacity

9. Covenants: Ongoing obligations of the borrower, including financial covenants and reporting requirements

10. Events of Default: Circumstances constituting default and consequences

11. Tax Provisions: Treatment of taxes, including withholding tax considerations

12. Notices: Communication procedures between parties

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

14. Execution: Signature blocks and execution requirements

Optional Sections

1. Security: Include if the loan is to be secured by any assets or guarantees

2. Subordination: Include if the loan needs to be subordinated to other group financing

3. Currency Provisions: Include for loans in foreign currency or with cross-border elements

4. Transfer Provisions: Include if assignment or transfer of the loan is to be permitted

5. Costs and Expenses: Include if there are specific arrangements for transaction costs

6. Anti-corruption and Sanctions: Include for cross-border loans or if required by group policy

7. Financial Covenants: Include if specific financial ratios or tests are required

Suggested Schedules

1. Drawdown Notice: Form of notice for requesting loan disbursements

2. Repayment Schedule: Detailed schedule of repayment dates and amounts

3. Calculation of Interest: Detailed methodology for interest calculations

4. Corporate Authorizations: Copies of relevant board resolutions and powers of attorney

5. Group Structure Chart: Diagram showing relationship between lender and borrower within group

6. Transfer Pricing Analysis: Documentation supporting arm's length nature of interest rate

7. Form of Compliance Certificate: Template for periodic compliance reporting

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Manufacturing

Technology

Financial Services

Real Estate

Energy

Healthcare

Retail

Telecommunications

Construction

Transportation

Professional Services

Media and Entertainment

Relevant Teams

Legal

Finance

Treasury

Tax

Compliance

Corporate Secretariat

Risk Management

Corporate Finance

Financial Control

Group Finance

Relevant Roles

Chief Financial Officer

Treasury Manager

Financial Controller

Legal Counsel

Corporate Lawyer

Tax Manager

Finance Director

Group Financial Controller

Company Secretary

Compliance Officer

Finance Manager

Treasury Director

Legal Director

Head of Corporate Finance

Risk Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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