Loan Settlement Agreement Template for Austria

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Key Requirements PROMPT example:

Loan Settlement Agreement

"I need a Loan Settlement Agreement under Austrian law for a €500,000 commercial loan to be settled with a 15% discount through three installments, with the final payment due by March 2025."

Document background
A Loan Settlement Agreement is used when parties wish to modify, settle, or terminate an existing loan arrangement under mutually agreed terms. This document type is particularly relevant in situations where the original loan terms need to be restructured, where early settlement is being offered (potentially at a discount), or where parties need to formalize payment arrangements for outstanding debt. The agreement must comply with Austrian legal requirements, particularly the Austrian Civil Code (ABGB) provisions regarding loan agreements and debt settlements. It typically includes detailed financial calculations, payment schedules, and release terms. Such agreements are common in both consumer and commercial contexts, though the requirements and protections may differ depending on the parties involved. The document serves as a legally binding record of the settlement terms and provides certainty for both lender and borrower regarding their rights and obligations.
Suggested Sections

1. Parties: Identification of the lender and borrower with full legal names and addresses

2. Background: Recitals describing the original loan agreement(s), current outstanding amounts, and the parties' intention to settle

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

4. Acknowledgment of Debt: Confirmation of the current outstanding amount, including principal, interest, and any other charges

5. Settlement Terms: Details of the settlement amount and any discount or concession being offered

6. Payment Terms: Payment schedule, method of payment, and consequences of default

7. Interest Provisions: Treatment of existing and future interest, including any interest waiver

8. Release and Discharge: Terms of release upon completion of settlement payments

9. Representations and Warranties: Basic representations about authority to enter agreement and understanding of terms

10. Confidentiality: Obligations to keep the settlement terms confidential

11. Governing Law and Jurisdiction: Confirmation of Austrian law application and jurisdiction

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Guarantor Provisions: Required when the original loan had guarantors, addressing their obligations under the settlement

2. Security Release: Needed when the original loan was secured and collateral needs to be released

3. Multiple Loan Integration: Used when settling multiple loans under one agreement

4. Tax Provisions: Required when there are specific tax implications of the settlement that need to be addressed

5. Default and Acceleration: Enhanced provisions for cases with higher risk or complex payment structures

6. Reinstatement of Original Terms: Provisions for what happens if the settlement terms are not met

7. Bank Account Provisions: Detailed banking arrangements when specific payment routing is required

8. Further Assurance: Additional cooperation requirements for complex settlements

Suggested Schedules

1. Schedule 1 - Original Loan Agreement: Copy of the original loan agreement(s) being settled

2. Schedule 2 - Calculation of Settlement Amount: Detailed breakdown of how the settlement amount was calculated

3. Schedule 3 - Payment Schedule: Detailed payment schedule if multiple payments are involved

4. Schedule 4 - Release Documentation: Forms of release for securities or guarantees if applicable

5. Schedule 5 - Security Documentation: List and copies of security documents to be released upon settlement

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

Banking and Financial Services

Real Estate

Construction

Manufacturing

Retail

Healthcare

Technology

Hospitality

Agriculture

Energy

Infrastructure

Professional Services

Relevant Teams

Legal

Finance

Credit Risk

Treasury

Debt Recovery

Compliance

Corporate Banking

Risk Management

Special Assets

Loan Operations

Client Relations

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Loan Officer

Credit Manager

Risk Manager

Treasury Manager

Debt Recovery Specialist

Corporate Lawyer

Financial Controller

Banking Relationship Manager

Restructuring Manager

Collections Manager

Compliance Officer

Managing Director

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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