Demand Loan Template for Denmark

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Key Requirements PROMPT example:

Demand Loan

I need a Demand Loan agreement under Danish law for a parent company lending 2 million DKK to its subsidiary, with the parent company retaining the right to demand repayment at any time with 5 business days' notice.

What is a Demand Loan?

This Demand Loan agreement template is designed for use under Danish law when parties wish to establish a flexible lending arrangement where the lender maintains the right to demand repayment at any time. The document is particularly useful for short-term financing needs, inter-company loans, or situations where traditional term loans may not be suitable. It includes all necessary provisions required under Danish legislation, including compliance with the Danish Contracts Act, Interest Act, and Financial Business Act. The agreement can be customized for both commercial and consumer lending scenarios, though additional requirements apply for consumer loans. The document includes comprehensive sections on loan terms, interest calculation, demand mechanisms, and enforcement provisions, all aligned with Danish legal requirements and market practice.

What sections should be included in a Demand Loan?

1. Parties: Identification of the lender and borrower with full legal names and addresses

2. Background: Context of the loan arrangement and relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the principal amount and intended use of the loan

5. Interest Rate: Details of interest calculation, rate, and payment frequency

6. Repayment Terms: Conditions for repayment, including the on-demand nature of the loan

7. Demand Mechanism: Process and requirements for demanding repayment

8. Representations and Warranties: Statements of fact and assurances from the borrower

9. Events of Default: Circumstances that constitute default under the agreement

10. Consequences of Default: Actions the lender may take upon default

11. Notices: Communication requirements and contact details

12. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction

13. Signatures: Execution blocks for all parties

What sections are optional to include in a Demand Loan?

1. Security: Include when the loan is secured by collateral or guarantees

2. Insurance Requirements: Include when specific insurance coverage is required for the loan

3. Costs and Expenses: Include when there are specific provisions about who bears various costs

4. Assignment and Transfer: Include when rights to transfer or assign the loan need to be addressed

5. Tax Provisions: Include when specific tax implications need to be addressed

6. Financial Covenants: Include when ongoing financial requirements are imposed on the borrower

7. Subordination: Include when the loan needs to be subordinated to other debt

8. Multiple Borrowers: Include when there is more than one borrower

9. Currency Provisions: Include when the loan involves multiple currencies

What schedules should be included in a Demand Loan?

1. Repayment Schedule: Details of any agreed payment schedule or minimum payment requirements

2. Details of Security: Description and documentation of any security or collateral

3. Calculation of Interest: Detailed methodology for interest calculation

4. Form of Demand Notice: Template for formal demand of repayment

5. Conditions Precedent: List of documents and conditions required before loan disbursement

6. Contact Details: Detailed contact information for all parties and authorized representatives

7. Required Insurance: Specifications of required insurance coverage if 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

Relevant legal definitions
Relevant Industries

Banking

Financial Services

Real Estate

Construction

Manufacturing

Retail

Technology

Healthcare

Energy

Agriculture

Transportation

Professional Services

Education

Hospitality

Non-Profit Organizations

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit Administration

Corporate Secretariat

Business Development

Operations

Executive Management

Board of Directors

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Compliance Officer

Credit Manager

Risk Manager

Financial Controller

Account Manager

Relationship Manager

Business Development Manager

Company Secretary

Finance Manager

Managing Director

CEO

Board Member

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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