Financing Contract Agreement for Germany

Financing Contract Agreement Template for Germany

A comprehensive financing agreement governed by German law (Darlehensvertrag) that establishes the terms and conditions for providing financial facilities between a lender and borrower. The document incorporates requirements from the German Civil Code (BGB) and German Banking Act (KWG), ensuring compliance with German banking regulations and financial services laws. It details loan amounts, interest calculations, repayment terms, security arrangements, representations and warranties, and events of default, while adhering to German legal principles and documentation requirements.

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What is a Financing Contract Agreement?

The Financing Contract Agreement (Darlehensvertrag) is a fundamental document used in German banking and finance transactions to establish legally binding financing arrangements between parties. It is specifically designed to comply with German legal requirements, including the German Civil Code (BGB), German Banking Act (KWG), and relevant EU regulations. This document is essential when establishing credit facilities, term loans, revolving facilities, or other financing arrangements in Germany. It contains all necessary provisions required by German law, including detailed terms on loan disbursement, interest calculation, repayment obligations, security arrangements, and enforcement mechanisms. The agreement is particularly important for ensuring legal certainty and enforceability within the German jurisdiction while protecting the interests of both lenders and borrowers.

What sections should be included in a Financing Contract Agreement?

1. Parties: Identification of the contracting parties including full legal names, registration details, and addresses

2. Background: Context of the financing arrangement and purpose of the loan

3. Definitions: Definitions of key terms used throughout the agreement

4. Facility: Details of the loan facility including amount, purpose, and availability

5. Conditions Precedent: Conditions that must be satisfied before the loan becomes available

6. Drawdown: Procedures and requirements for drawing down the loan

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

8. Repayment: Terms and schedule for repayment of the loan

9. Prepayment: Conditions and procedures for voluntary and mandatory prepayment

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

11. Covenants: Positive and negative obligations of the borrower during the loan term

12. Events of Default: Circumstances that constitute default and consequences thereof

13. Costs and Expenses: Allocation of costs, fees, and expenses related to the loan

14. Notices: Communication procedures between parties

15. Assignment and Transfer: Rules regarding transfer of rights and obligations

16. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction provisions

What sections are optional to include in a Financing Contract Agreement?

1. Security: Details of any security or collateral - include when the loan is secured

2. Guarantee: Terms of any guarantee - include when there are guarantors

3. Syndication Provisions: Rules for loan syndication - include for syndicated facilities

4. Tax Gross-Up and Indemnities: Tax-related provisions - include for cross-border or complex financing

5. Market Disruption: Provisions for handling market disruption events - include for variable rate facilities

6. Increased Costs: Provisions for dealing with regulatory changes - include for longer-term facilities

7. Set-off Rights: Rights of set-off - include when relevant to the parties' relationship

8. Currency Provisions: Multi-currency provisions - include for multi-currency facilities

What schedules should be included in a Financing Contract Agreement?

1. Schedule 1 - Conditions Precedent Documents: List of required documents and conditions to be satisfied

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

3. Schedule 3 - Repayment Schedule: Detailed amortization schedule if applicable

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

5. Schedule 5 - Security Documents: List and copies of security documents if applicable

6. Appendix A - Calculation of Interest: Detailed methodology for interest calculations

7. Appendix B - Forms of Notices: Standard forms for various notices under the agreement

8. Appendix C - Know Your Customer Requirements: Documentation requirements for KYC compliance

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

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Corporate Finance

Real Estate

Manufacturing

Technology

Infrastructure

Energy

Healthcare

Retail

Transportation and Logistics

Agriculture

Construction

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Banking

Credit Analysis

Documentation

Transaction Management

Portfolio Management

Relationship Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Banking Lawyer

Finance Manager

Credit Risk Manager

Relationship Manager

Compliance Officer

Financial Controller

Corporate Banking Manager

Loan Officer

Investment Manager

Risk Assessment Officer

Portfolio Manager

Transaction Manager

Documentation Specialist

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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