Short Term Loan Agreement Template for Austria

The Short Term Loan Agreement is a fundamental financial instrument used in Austria for establishing legally binding lending arrangements with durations typically under one year. This document is essential for both institutional and private lending transactions, providing a structured framework that complies with Austrian banking regulations, civil code requirements, and EU financial services directives. It is particularly useful for working capital financing, bridge loans, or temporary funding needs. The agreement incorporates mandatory provisions under Austrian law while allowing customization for specific lending circumstances. It includes comprehensive details about loan terms, interest calculations, repayment obligations, and default scenarios, making it suitable for both commercial and consumer lending contexts, though additional consumer protection provisions apply when the borrower is an individual.

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

2. Background: Brief context of the loan arrangement and purpose

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

4. Loan Amount and Purpose: Specification of the loan amount and permitted use of funds

5. Interest Rate: Details of applicable interest rate, calculation method, and payment frequency

6. Term and Repayment: Loan duration and repayment schedule, including final maturity date

7. Disbursement: Conditions for and mechanics of loan disbursement

8. Representations and Warranties: Basic representations by the borrower regarding legal capacity and authority

9. Events of Default: Circumstances constituting default and consequences

10. Notices: Communication methods and contact details for formal notices

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

12. Execution: Signature blocks and execution requirements