Finance Contract Template for Belgium

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Key Requirements PROMPT example:

Finance Contract

"I need a Finance Contract governed by Belgian law for a €5 million term loan from Bank ABC to my manufacturing company, with quarterly repayments over 5 years starting March 2025, including standard representations and warranties for a corporate borrower."

Document background
The Finance Contract serves as the primary documentation for financial facilities in Belgium, establishing the legal framework for lending arrangements between financial institutions and borrowers. It is designed to comply with Belgian civil law, financial regulations, and EU directives, making it suitable for both domestic and cross-border transactions. The document is typically used when establishing new credit facilities, term loans, revolving credit facilities, or other financing arrangements in Belgium. It includes comprehensive provisions covering drawdown mechanics, interest calculations, security arrangements, representations and warranties, and covenant packages. The contract's structure reflects Belgian market practice while incorporating international banking standards, making it adaptable for various financing needs while maintaining compliance with local regulatory requirements.
Suggested Sections

1. Parties: Identification of the contracting parties, including full legal names, registration numbers, and registered addresses

2. Background: Context of the financing arrangement and brief description of the transaction

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

4. Facility Amount and Purpose: Details of the financing amount, currency, and permitted use of funds

5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

6. Drawdown Mechanics: Procedures and requirements for requesting and receiving funds

7. Interest and Fees: Interest calculation, payment dates, and applicable fees

8. Repayment Terms: Schedule and mechanics of repayment, including prepayment provisions

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Covenants: Ongoing obligations of the borrower during the term of the facility

11. Events of Default: Circumstances that trigger default and lender's remedies

12. Notices: Communication procedures between parties

13. Data Protection: GDPR compliance provisions and data handling procedures

14. Governing Law and Jurisdiction: Confirmation of Belgian law governance and jurisdiction

Optional Sections

1. Security: Required when the facility is secured by collateral or guarantees

2. Syndication Provisions: Include for syndicated facilities with multiple lenders

3. Tax Gross-Up and Indemnities: Required for cross-border transactions or when tax implications need specific attention

4. Market Disruption: Include for facilities with floating interest rates

5. Increased Costs: Include when regulatory changes might affect the lender's costs

6. Assignment and Transfer: Include when parties want to allow transfer of rights/obligations

7. Currency Provisions: Required for multi-currency facilities

8. Accordion Feature: Include when facility amount may be increased in the future

9. Green Loan Provisions: Include for environmentally sustainable financing

Suggested Schedules

1. Schedule 1 - Conditions Precedent Documents: Detailed list of required documents and conditions

2. Schedule 2 - Form of Drawdown Request: Template for borrower to request funds

3. Schedule 3 - Repayment Schedule: Detailed amortization schedule if applicable

4. Schedule 4 - Form of Compliance Certificate: Template for periodic compliance reporting

5. Schedule 5 - Security Documents: List and copies of security documentation if applicable

6. Schedule 6 - Fee Schedule: Detailed breakdown of all applicable fees

7. Appendix A - Calculation of Interest: Detailed methodology for interest calculation

8. Appendix B - Know Your Customer Requirements: AML and customer due diligence requirements

9. Appendix C - Contact Details: List of authorized representatives and contact information

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
Clauses
Relevant Industries

Banking

Financial Services

Corporate Finance

Real Estate

Manufacturing

Technology

Energy

Infrastructure

Healthcare

Retail

Agriculture

Transportation

Construction

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit

Corporate Affairs

Business Development

Operations

Administrative

Investment

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Compliance Officer

Risk Manager

Credit Manager

Investment Officer

Banking Relationship Manager

Financial Controller

Corporate Secretary

Managing Director

Business Development Manager

Account Manager

Transaction 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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