Document background
An Amended Loan Agreement under German law is utilized when parties to an existing loan arrangement need to modify their original agreement's terms without creating an entirely new contract. This document type is particularly relevant when circumstances require adjustments to financial terms, extension of maturity dates, modification of covenants, or changes to security arrangements. The agreement must comply with German legal requirements, particularly the BGB (German Civil Code) and, where applicable, the KWG (German Banking Act). It's commonly used in corporate financing, project finance, and general commercial lending when market conditions, borrower circumstances, or regulatory requirements necessitate changes to the original loan terms. The document typically includes detailed references to the original agreement, specific amendments, and confirmations of unchanged terms, ensuring a clear audit trail of modifications while maintaining legal certainty under German law.
