Parallel Loan Agreement Template for Belgium

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Key Requirements PROMPT example:

Parallel Loan Agreement

"I need a Parallel Loan Agreement governed by Belgian law for a €50 million facility between our Belgian parent company and Dutch subsidiary, with quarterly interest payments and a 5-year term starting March 2025."

Document background
The Parallel Loan Agreement is a sophisticated financing instrument used when direct cross-border lending is restricted or presents tax inefficiencies. This document, governed by Belgian law, establishes a structure where parallel loans are created between related entities in different jurisdictions, typically to facilitate international financing while optimizing tax efficiency and regulatory compliance. The agreement includes detailed provisions for loan mechanics, cross-default arrangements, security structures, and regulatory compliance requirements. It is particularly useful for multinational corporations seeking to establish efficient internal financing arrangements or for financial institutions structuring cross-border financing solutions.
Suggested Sections

1. Parties: Identification of the lenders and borrowers in the parallel loan structure

2. Background: Context of the parallel loan arrangement and its purpose

3. Definitions and Interpretation: Definitions of terms used in the agreement and interpretation rules

4. The Facilities: Description of the parallel loan facilities and their principal terms

5. Purpose: Permitted uses of the loan proceeds

6. Conditions Precedent: Conditions that must be satisfied before drawdown

7. Drawdown: Procedures and requirements for drawing down the loans

8. Interest: Interest calculation, periods, and payment provisions

9. Repayment: Terms and schedule for repayment of the parallel loans

10. Prepayment: Voluntary and mandatory prepayment provisions

11. Tax Gross Up and Indemnities: Provisions for tax-related payments and indemnities

12. Increased Costs: Provisions dealing with changes in costs due to regulatory changes

13. Representations and Warranties: Standard representations and warranties from each party

14. Information Undertakings: Obligations to provide financial and other information

15. General Undertakings: General covenants applicable to the borrowers

16. Events of Default: Circumstances constituting default and consequences

17. Changes to Parties: Assignment and transfer provisions

18. Administration: Administrative provisions including payments and calculations

19. Notices: Communication procedures between parties

20. Miscellaneous: Standard boilerplate provisions

21. Governing Law and Jurisdiction: Choice of Belgian law and jurisdiction provisions

Optional Sections

1. Security: Security arrangements if the parallel loans are secured

2. Guarantees: Terms of any guarantees provided for the parallel loans

3. Currency Provisions: Special provisions for multi-currency facilities

4. Set-off Rights: Specific set-off arrangements between the parallel loans

5. Tax Credits: Detailed tax credit mechanisms if applicable

6. Break Costs: Provisions for early termination costs

7. Market Disruption: Provisions dealing with market disruption events

8. Refinancing Provisions: Terms for refinancing the parallel loans

Suggested Schedules

1. Schedule 1 - Conditions Precedent Documents: List of required conditions precedent documents

2. Schedule 2 - Form of Drawdown Request: Template for drawdown requests

3. Schedule 3 - Repayment Schedule: Detailed repayment schedule for each facility

4. Schedule 4 - Form of Transfer Certificate: Template for transfer of loan participations

5. Schedule 5 - Forms of Notices: Standard form notices for various communications

6. Schedule 6 - Calculation of Interest: Detailed interest calculation methodologies

7. Schedule 7 - Contact Details: Contact information for all parties

8. Appendix A - Initial Financial Statements: Copy of relevant financial statements

9. Appendix B - Group Structure Chart: Corporate structure of the borrower group

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

Manufacturing

Real Estate

Infrastructure

Energy

Telecommunications

Mining

International Trade

Construction

Renewable Energy

Technology

Relevant Teams

Legal

Finance

Treasury

Tax

Compliance

Risk Management

Corporate Finance

International Finance

Banking Operations

Credit Risk

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Tax Director

Financial Controller

Compliance Officer

Risk Manager

Banking Relationship Manager

Corporate Finance Manager

International Finance Manager

Senior Finance Analyst

Treasury Operations 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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