Loan Participation Agreement Template for Belgium

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Loan Participation Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Loan Participation Agreement

"I need a Belgian law Loan Participation Agreement for a 30% participation in a €50 million commercial real estate loan, with specific provisions for elevation rights after March 2025 and enhanced voting rights for the participant."

Document background
A Loan Participation Agreement is commonly used in the Belgian financial market when a direct assignment of loan rights is not practical or desirable. This document is particularly relevant when banks need to manage their loan exposure or when investors seek to participate in loan opportunities without becoming direct lenders. The agreement details the participation arrangement, including the scope of participation, payment mechanics, and risk allocation, all structured within the Belgian legal framework. It addresses key regulatory requirements under Belgian banking law, including provisions related to financial institution supervision, anti-money laundering regulations, and banking secrecy requirements. The document is essential for financial institutions operating in Belgium who wish to create synthetic loan exposures or manage their loan portfolio without notifying or obtaining consent from the underlying borrower.
Suggested Sections

1. Parties: Identifies and defines the parties to the agreement - typically the originator/seller and the participant/purchaser

2. Background: Sets out the context of the agreement, including details of the underlying loan and the intention to create a participation

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. Sale and Purchase of Participation: Details the participation interest being sold, purchase price, and completion mechanics

5. Payments and Distributions: Governs the flow of payments between parties, including participation payments and distribution waterfall

6. Rights and Obligations of the Parties: Establishes the respective rights and obligations of the originator and participant

7. Administration of the Underlying Loan: Sets out how the underlying loan will be administered and the participant's rights in decision-making

8. Representations and Warranties: Contains standard and transaction-specific representations and warranties from both parties

9. Tax Provisions: Addresses tax implications, withholding requirements, and tax-related indemnities

10. Costs and Expenses: Allocates responsibility for costs and expenses related to the transaction

11. Confidentiality: Governs the treatment of confidential information and banking secrecy requirements

12. Term and Termination: Sets out the duration of the agreement and circumstances for termination

13. Governing Law and Jurisdiction: Specifies Belgian law as governing law and establishes jurisdiction for disputes

Optional Sections

1. Regulatory Compliance: Additional section when specific regulatory requirements need to be addressed, such as risk retention rules

2. Security Arrangements: Required when there are specific security or collateral arrangements related to the participation

3. Further Assurance: Optional section for additional cooperation requirements between parties

4. Assignment and Transfer: Included when parties want to specifically address transfer rights of the participation

5. Elevation Rights: Optional section allowing the participant to convert the participation into a direct loan assignment

6. Voting Rights: Detailed section on voting rights when the underlying loan involves syndicated facilities

7. EU Bail-in Provisions: Required when any party is subject to EU banking resolution requirements

8. Data Protection: Detailed GDPR compliance section when personal data processing is involved

Suggested Schedules

1. Schedule 1 - Underlying Loan Details: Details of the underlying loan agreement including key terms, conditions, and borrower information

2. Schedule 2 - Form of Transfer Certificate: Standard form for documenting transfers of participation interests

3. Schedule 3 - Administrative Details of the Parties: Contact details, account information, and administrative procedures

4. Schedule 4 - Participation Amount and Price: Specific details of the participation amount and calculation of the purchase price

5. Schedule 5 - Form of Participation Certificate: Standard form evidencing the participation interest

6. Appendix A - Conditions Precedent: List of required documents and conditions to be satisfied before completion

7. Appendix B - Payment Procedures: Detailed procedures for making and receiving payments under the participation

8. Appendix C - Reporting Requirements: Templates and procedures for required reporting between parties

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

Investment Management

Private Equity

Insurance

Asset Management

Corporate Finance

Commercial Real Estate

Infrastructure Finance

Project Finance

Relevant Teams

Legal

Finance

Risk Management

Treasury

Compliance

Credit Administration

Portfolio Management

Structured Finance

Transaction Management

Documentation

Investment

Operations

Relevant Roles

Legal Counsel

Finance Director

Credit Risk Manager

Portfolio Manager

Structured Finance Manager

Compliance Officer

Treasury Manager

Investment Manager

Banking Relationship Manager

Transaction Manager

Chief Financial Officer

Risk Officer

Financial Controller

Documentation Manager

Loan Administrator

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

Find the exact document you need

Private Money Lending Contract

Belgian law-governed private lending agreement establishing loan terms, interest rates, and repayment conditions between private parties.

find out more

Cash Loan Simple Loan Agreement

Belgian law-governed simple loan agreement for cash lending, establishing core terms for money lending and repayment.

find out more

Interest Loan Agreement

A Belgian law-governed agreement establishing terms for an interest-bearing loan, including loan amount, interest calculations, and repayment conditions.

find out more

Litigation Funding Agreement

Belgian law agreement establishing terms for third-party funding of legal proceedings, including funding mechanics, success fees, and control rights.

find out more

Loan Participation Agreement

Belgian law-governed agreement enabling transfer of economic interests in a loan while maintaining the original lender-borrower relationship.

find out more

Short Term Loan Agreement

Belgian law-governed agreement for short-term financing arrangements, setting out loan terms, repayment conditions, and parties' obligations in compliance with Belgian regulations.

find out more

Separation Financial Agreement

A Belgian law-governed agreement detailing comprehensive financial arrangements between separating spouses, including asset division, maintenance, and ongoing obligations.

find out more

Promissory Loan Agreement

A Belgian law-governed agreement combining a loan contract and promissory note, documenting terms for borrowed funds repayment with enhanced enforcement options.

find out more

Owner Finance Agreement

A Belgian law-governed agreement where the property seller provides direct financing to the buyer, combining property sale and financing terms in compliance with Belgian regulations.

find out more

Business Loan Contract

A Belgian law-governed agreement establishing terms and conditions for a business loan between a financial institution and a business entity.

find out more

Debt Facility Agreement

Belgian law-governed agreement establishing terms and conditions for credit facilities between lenders and borrowers, including loan terms, security provisions, and regulatory compliance requirements.

find out more

Loan And Security Agreement

Belgian law-governed agreement combining loan facility terms with security arrangements, establishing both lending conditions and collateral requirements.

find out more

Financial Management Agreement

A Belgian law-governed agreement establishing terms for professional financial management services, compliant with local and EU financial regulations.

find out more

Guarantee Facility Agreement

Belgian law-governed agreement establishing terms for issuing bank guarantees, detailing facility limits, procedures, and obligations of all parties.

find out more

Intra Group Loan Agreement

Belgian law-governed loan agreement between related group entities, establishing terms for intra-group financing while ensuring regulatory compliance.

find out more

Subordinate Loan Agreement

Belgian law-governed agreement establishing terms for subordinated debt financing, including ranking, repayment, and regulatory compliance provisions.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.