Document background
The Loan Assumption Agreement is a critical document used when one party wishes to take over the loan obligations of another under Austrian law. This situation commonly arises in corporate acquisitions, real estate transactions, or business restructuring where the assuming party agrees to become responsible for an existing loan. The agreement must comply with Austrian civil law requirements, particularly the ABGB (Austrian Civil Code) provisions regarding debt assumption (Schuldübernahme) and the Austrian Banking Act (BWG). The document typically includes detailed information about the original loan, terms of assumption, any modifications to the original terms, security arrangements, and the respective rights and obligations of all parties. It requires careful consideration of banking regulations, security interests, and often involves notarization requirements specific to Austrian jurisdiction.
