Termination Of Security Agreement for Germany

Termination Of Security Agreement Template for Germany

This document is a formal termination agreement governed by German law (Bürgerliches Gesetzbuch - BGB) that effectively terminates and releases previously granted security interests. It provides for the complete release of security interests, return of security documents, and deregistration from relevant registers where applicable. The agreement ensures compliance with German security and property laws, addressing all necessary formalities for releasing collateral and ending the security arrangements. It includes provisions for representations, further assurances, and surviving obligations, while incorporating specific requirements under German banking and security laws.

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What is a Termination Of Security Agreement?

The Termination of Security Agreement is essential when parties wish to formally end security arrangements under German law, typically following the full repayment of secured obligations or as part of a refinancing transaction. This document is used when security interests need to be released, whether they involve movable assets, real estate, or other forms of collateral. It addresses the specific requirements of German security law, including formal release declarations (Freigabeerklärung) and deregistration requirements where applicable. The agreement ensures proper documentation of the security release process, protecting both the security provider and the secured party from future claims or disputes. It's particularly important in the German legal context due to strict formality requirements and the need for clear documentation of security releases.

What sections should be included in a Termination Of Security Agreement?

1. Parties: Identification of all parties to the termination agreement, including the security provider, security holder, and any other relevant parties

2. Background: Reference to the original Security Agreement, its date, and purpose, and brief explanation of why termination is being executed

3. Definitions: Key terms used in the agreement, including reference to defined terms from the original Security Agreement

4. Termination: Clear statement of termination of the Security Agreement and its effective date

5. Release of Security Interest: Express release of all security interests created under the original agreement

6. Return of Documents: Provisions regarding the return or cancellation of any security documents, certificates, or other relevant documentation

7. Representations and Warranties: Basic representations regarding authority to terminate and release security interests

8. Further Assurance: Obligation to execute additional documents or take further steps necessary to effect the termination

9. Governing Law and Jurisdiction: Confirmation that German law governs the termination and jurisdiction for any disputes

What sections are optional to include in a Termination Of Security Agreement?

1. Partial Termination Provisions: Required when only certain security interests are being terminated while others remain in effect

2. Registration Requirements: Include when the security interest requires deregistration from public registers (e.g., land registry, commercial registry)

3. Surviving Provisions: Needed when certain provisions of the original agreement should survive termination

4. Payment Provisions: Include if any final payments or settlements are required as part of the termination

5. Release of Liability: Optional mutual releases from future claims relating to the terminated security interest

6. Confidentiality: Include if parties wish to maintain confidentiality about the termination or underlying arrangements

What schedules should be included in a Termination Of Security Agreement?

1. Original Security Agreement: Copy or details of the Security Agreement being terminated

2. Asset Schedule: List of all assets or collateral being released from security interests

3. Release Forms: Forms required for releasing security interests from various registries

4. Authorization Documents: Corporate authorizations, powers of attorney, or other authority documents required for the termination

5. Registration Documents: Copies of original registration documents and deregistration forms where applicable

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

Cost

Free to use
Relevant legal definitions
Relevant Industries

Banking and Financial Services

Real Estate

Corporate Finance

Manufacturing

Energy

Infrastructure

Commercial Property

Industrial

Retail

Technology

Transportation

Agriculture

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Secretariat

Real Estate

Credit

Banking

Security Administration

Transaction Management

Relevant Roles

Legal Counsel

Finance Director

Chief Financial Officer

Treasury Manager

Corporate Finance Manager

Compliance Officer

Risk Manager

Security Trustee

Facility Agent

Corporate Secretary

Real Estate Manager

Asset Manager

Transaction Manager

Banking Relationship Manager

Credit Risk Officer

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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