Loan Master Agreement Template for Belgium

The Loan Master Agreement is a fundamental document used in Belgian banking and finance transactions to establish a framework for ongoing lending relationships. It serves as an umbrella agreement under which multiple loans can be extended over time without the need to renegotiate basic terms and conditions for each transaction. This document, governed by Belgian law and compliant with EU regulations, typically includes comprehensive provisions covering facility terms, utilization mechanics, interest calculations, repayment structures, security arrangements, and covenant packages. It is particularly useful for corporate borrowers who maintain ongoing relationships with their lenders and require flexible access to funding. The agreement incorporates specific Belgian law requirements regarding financial services, security interests, and enforcement mechanisms, while also addressing EU-wide regulatory requirements such as bail-in provisions and GDPR compliance.

1. Parties: Identification of the lender(s) and borrower(s), including their legal details and representatives

2. Background: Context of the agreement and relationship between the parties

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation

4. The Facility: Details of the loan facility, including type, purpose, and total amount available

5. Conditions Precedent: Conditions that must be satisfied before any utilization of the facility

6. Utilization: Process and requirements for drawing down loans under the facility

7. Interest: Interest calculation, periods, payment dates, and default interest provisions

8. Repayment: Terms and schedule for repayment of loans

9. Prepayment and Cancellation: Voluntary and mandatory prepayment provisions and cancellation rights

10. Tax Gross Up and Indemnities: Tax-related provisions and associated indemnities

11. Increased Costs: Provisions dealing with changes in costs due to regulatory or legal changes

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

13. Information Undertakings: Borrower's obligations to provide financial and other information

14. Financial Covenants: Financial ratios and tests the borrower must maintain

15. General Undertakings: General obligations of the borrower regarding conduct of business

16. Events of Default: Circumstances constituting default and consequences

17. Changes to Parties: Transfer and assignment provisions

18. Payment Mechanics: Administrative provisions regarding payments

19. Set-off: Rights of set-off between parties

20. Notices: Communication methods and contact details

21. Calculations and Certificates: Provisions regarding calculations and evidence of amounts due

22. Partial Invalidity: Severability provisions

23. Remedies and Waivers: Rights and remedies of the parties

24. Amendments and Waivers: Process for modifying the agreement

25. Governing Law and Enforcement: Choice of Belgian law and jurisdiction provisions