The Credit Facility Agreement under German law serves as the primary documentation for establishing and governing credit arrangements between financial institutions and borrowers in Germany. This document is essential when a company or entity seeks to secure financing through various types of credit facilities, including term loans, revolving credit facilities, or specialized financing arrangements. The agreement must comply with German banking regulations (KWG), the German Civil Code (BGB), and other relevant financial services legislation. It typically includes detailed provisions on facility terms, drawdown mechanisms, representations and warranties, covenants, events of default, and security arrangements. The document is structured to accommodate both bilateral and syndicated lending arrangements, with additional provisions for multi-lender scenarios when required. German law Credit Facility Agreements often incorporate specific local law requirements regarding form, language, and enforcement mechanisms, while also reflecting international banking practices where appropriate.

1. Parties: Identification of the lender(s), borrower(s), and any other parties to the agreement

2. Background: Context of the facility and purpose of the agreement

3. Definitions and Interpretation: Defined terms, interpretation rules, and language provisions

4. The Facility: Core terms of the credit facility including amount, purpose, and availability period

5. Conditions Precedent: Documents and conditions required before drawdown

6. Utilisation: Process and requirements for drawing down the facility

7. Repayment: Terms for repayment of the facility

8. Prepayment and Cancellation: Voluntary and mandatory prepayment provisions

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

10. Fees: Commitment fees, arrangement fees, and other charges

11. Tax Gross Up and Indemnities: Tax-related provisions and indemnities

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

13. Representations: Borrower's representations and warranties

14. Information Undertakings: Requirements for financial and other information provision

15. Financial Covenants: Financial maintenance covenants and calculations

16. General Undertakings: Positive and negative undertakings of the borrower

17. Events of Default: Circumstances constituting default and consequences

18. Changes to Parties: Transfer and assignment provisions

19. Payment Mechanics: Payment procedures, currencies, and set-off rights

20. Notices: Communication methods and contact details

21. Calculations and Certificates: Basis for calculations and evidence of amounts due

22. Partial Invalidity: Severability provisions

23. Remedies and Waivers: Rights and waivers provisions

24. Amendments and Waivers: Process for modifying the agreement

25. Governing Law: German law as governing law

26. Enforcement: Jurisdiction and enforcement provisions