Document background
The Loan Agreement And Promissory Note is a sophisticated legal instrument commonly used in Austrian financing transactions. It serves multiple purposes by combining the comprehensive terms of a loan agreement with the security and transferability features of a promissory note. This document type is particularly valuable when lenders require additional security or wish to maintain the option of transferring the debt instrument. The agreement must comply with Austrian civil law (ABGB), commercial law (UGB), and banking regulations where applicable. It's typically used for both commercial and private lending, ranging from business financing to real estate transactions. The document includes detailed provisions for loan disbursement, repayment terms, interest calculations, security arrangements, and default scenarios, while the promissory note component provides a separate acknowledgment of debt that can potentially be traded or used as security.
