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Loan Guarantee Agreement

Loan Guarantee Agreement Template for Belgium

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Key Requirements PROMPT example:

Loan Guarantee Agreement

"I need a Belgian law Loan Guarantee Agreement for our manufacturing company to guarantee a €5 million commercial loan to our subsidiary, with the guarantee period starting March 1, 2025, and including specific provisions for corporate benefit declarations and multiple guarantor arrangements."

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Document background
The Loan Guarantee Agreement is a crucial security document in Belgian financing transactions, used when a third party (guarantor) agrees to secure the loan obligations of a borrower. This document is essential in various contexts, from corporate financing to real estate transactions, and must comply with Belgian Civil Code requirements regarding suretyship and financial collateral arrangements. The agreement details the guarantee's scope, conditions, and enforcement mechanisms, while ensuring compliance with Belgian corporate law, financial regulations, and consumer protection requirements where applicable. It's particularly important in commercial lending where additional security is required, and can be used in both bilateral and syndicated loan arrangements. The document must address specific Belgian law requirements regarding form, content, and execution, particularly concerning the independent nature of guarantees and the extent of the guarantor's obligations.
Suggested Sections

1. Parties: Identification of the Guarantor, Lender (Beneficiary), and the Primary Debtor

2. Background: Context of the guarantee, reference to the primary loan agreement, and purpose of the guarantee

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Guarantee and Indemnity: Core guarantee obligations, scope of the guarantee, and indemnification provisions

5. Limits and Maximum Liability: Specification of the maximum amount guaranteed and any limitations on the guarantee

6. Nature of Guarantee: Characteristics of the guarantee (e.g., independent, joint and several, continuing)

7. Representations and Warranties: Guarantor's confirmations regarding capacity, authority, and financial condition

8. Payment Mechanics: Procedures and timing for guarantee payments, currency provisions

9. Tax Provisions: Treatment of taxes, gross-up obligations, and tax indemnities

10. Duration and Release: Term of the guarantee and conditions for release or termination

11. Communications: Notice requirements and communication procedures between parties

12. General Provisions: Standard clauses including severability, amendments, and assignment

13. Governing Law and Jurisdiction: Confirmation of Belgian law application and jurisdiction for disputes

14. Execution: Signature blocks and execution formalities

Optional Sections

1. Corporate Guarantor Provisions: Additional provisions specific to corporate guarantors, including corporate benefit declarations - include when guarantor is a company

2. Security Interest: Provisions for any additional security provided with the guarantee - include when guarantee is secured

3. Financial Covenants: Specific financial maintenance requirements for the guarantor - include for larger commercial transactions

4. Consumer Protection Clauses: Mandatory provisions under Belgian consumer law - include when guarantor is a consumer

5. Multiple Guarantors: Provisions governing relationship between multiple guarantors - include when there is more than one guarantor

6. Currency Conversion: Detailed provisions for handling multiple currencies - include when guarantee involves multiple currencies

7. Bank Account Details: Specific payment account information - include when regular payments are anticipated

Suggested Schedules

1. Form of Demand: Template for making a demand under the guarantee

2. Primary Loan Agreement: Copy or key terms of the underlying loan agreement being guaranteed

3. Corporate Authorizations: Copies of relevant corporate approvals and authorizations

4. Guarantor Financial Information: Key financial statements or information of the guarantor

5. Calculation of Maximum Liability: Details of how the maximum guarantee amount is calculated if complex

6. Security Documents: If applicable, documents relating to any security provided with the guarantee

7. Conditions Precedent: List of documents and conditions required before guarantee becomes effective

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Guarantee
Guaranteed Obligations
Primary Loan Agreement
Guaranteed Amount
Maximum Liability
Security
Event of Default
Lender
Primary Debtor
Guarantor
Business Day
Demand
Enforcement Event
Guarantee Period
Interest Rate
Material Adverse Change
Payment Date
Secured Parties
Security Interest
Taxes
Working Day
Encumbrance
Financial Indebtedness
Insolvency Event
Legal Reservation
Permitted Security
Release Date
Representation
Security Agent
Security Period
Default Interest
Effective Date
Finance Documents
Guarantee Fee
Guaranteed Liabilities
Notice
Payment Currency
Relevant Jurisdiction
Required Currency
Termination Date
Underlying Obligations
Warranty
Belgian Law
Governing Law
Jurisdiction
Authorization
Notification
Regulatory Authority
Specified Time
Tax Deduction
Valid Claim
Clauses
Parties
Interpretation
Definitions
Guarantee and Indemnity
Scope of Guarantee
Payment Obligations
Representations and Warranties
Liability Limitations
Duration
Termination
Release
Security
Financial Covenants
Information Undertakings
Tax Provisions
Currency Provisions
Set-off Rights
Assignment and Transfer
Amendments and Waivers
Severability
Notices
Costs and Expenses
Indemnification
Confidentiality
Data Protection
Anti-Money Laundering
Force Majeure
Default
Acceleration
Enforcement
Remedies
Multiple Guarantors
Subordination
Further Assurance
Entire Agreement
Counterparts
Time of Essence
Governing Law
Jurisdiction
Service of Process
Relevant Industries

Banking & Financial Services

Corporate Lending

Real Estate & Property

Manufacturing

Retail & Commercial

Infrastructure & Construction

Professional Services

Technology & Software

Energy & Utilities

Healthcare & Life Sciences

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Secretariat

Credit

Commercial Banking

Corporate Finance

Transaction Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Finance Manager

Credit Risk Manager

Lending Officer

Relationship Manager

Compliance Officer

Treasury Manager

Corporate Secretary

Risk Officer

Transaction Manager

Financial Controller

Legal Director

Industries
Belgian Civil Code (Code Civil/Burgerlijk Wetboek) - Articles 2011-2043: Core provisions governing suretyship (cautionnement/borgtocht) including formation requirements, scope, and effects of guarantee agreements
Belgian Civil Code - Articles 1108-1133: General contract law provisions covering essential conditions for valid contracts including consent, capacity, object, and cause
Law of 15 December 2004 on Financial Collateral: Specific regulations regarding financial collateral arrangements and securities in financial transactions
Belgian Code of Economic Law (Book VII): Provisions regarding credit agreements and consumer protection in financial services if applicable
Belgian Companies and Associations Code: Relevant for corporate guarantees, including provisions on corporate capacity and authority to provide guarantees
Law of 2 August 2002 on Financial Market Supervision: Regulatory framework for financial institutions and transactions in Belgium
Belgian Anti-Money Laundering Law of 18 September 2017: Compliance requirements for financial transactions and due diligence obligations
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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