Share Mortgage Agreement Template for Denmark

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Key Requirements PROMPT example:

Share Mortgage Agreement

I need a Share Mortgage Agreement under Danish law for a pledge of 10,000 shares in a private limited company to secure a EUR 2 million loan, with the security to be held by a security agent on behalf of a syndicate of lenders.

What is a Share Mortgage Agreement?

The Share Mortgage Agreement is a crucial security document used in Danish financial and corporate transactions where shares are provided as collateral for financial obligations. This agreement is commonly used in loan transactions, corporate restructurings, and investment arrangements where a lender or investor requires security over shares. The document must comply with Danish legal requirements, including the Danish Capital Markets Act and Securities Trading Act, and typically includes detailed provisions on creation and perfection of the security interest, voting rights, dividends, and enforcement mechanisms. The Share Mortgage Agreement is particularly important in situations involving significant corporate transactions, acquisition financing, or other secured lending arrangements where shares serve as valuable collateral.

What sections should be included in a Share Mortgage Agreement?

1. Parties: Identification of the Mortgagor and Mortgagee with full legal names and registration details

2. Background: Context of the share mortgage, including reference to any underlying debt or obligation being secured

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Creation of Security: Express provisions creating the mortgage over the shares and the scope of the security interest

5. Secured Obligations: Definition and scope of the obligations being secured by the share mortgage

6. Perfection and Registration: Requirements and procedures for perfecting the security interest and registering it with relevant authorities

7. Representations and Warranties: Mortgagor's representations regarding ownership, authority, and status of the shares

8. Mortgagor's Covenants: Ongoing obligations of the Mortgagor regarding the shares and maintenance of the security

9. Voting Rights and Dividends: Provisions regarding exercise of voting rights and treatment of dividends

10. Enforcement: Rights and procedures for enforcing the security interest upon default

11. Power of Attorney: Grant of power of attorney to the Mortgagee for security purposes

12. Notices: Procedures for giving notices under the agreement

13. Governing Law and Jurisdiction: Confirmation of Danish law as governing law and jurisdiction for disputes

What sections are optional to include in a Share Mortgage Agreement?

1. Security Agent Provisions: Required when the security is held by a security agent on behalf of multiple secured parties

2. Listed Securities Provisions: Special provisions required for listed shares, including compliance with stock exchange rules

3. Share Certificate Delivery: Required for physical share certificates, detailing delivery and custody arrangements

4. Further Assurance: Additional provisions requiring the Mortgagor to take further actions to perfect or protect the security

5. Currency Provisions: Required when the secured obligations are in a different currency from the shares

6. Tax Provisions: Detailed tax provisions required when specific tax implications need to be addressed

7. Financial Collateral Arrangements: Special provisions required when the agreement qualifies as a financial collateral arrangement under Danish law

What schedules should be included in a Share Mortgage Agreement?

1. Schedule 1 - Share Details: Detailed description of the mortgaged shares, including number, class, and nominal value

2. Schedule 2 - Form of Notice to Company: Template notice to be sent to the company whose shares are being mortgaged

3. Schedule 3 - Form of Acknowledgment: Template acknowledgment to be obtained from the company

4. Schedule 4 - Secured Obligations: Detailed description of the secured obligations if complex

5. Appendix 1 - Board Resolution: Copy of board resolution authorizing the share mortgage

6. Appendix 2 - Share Certificates: Copies of relevant share certificates (if applicable)

7. Appendix 3 - Shareholders' Agreement: Relevant excerpts from shareholders' agreement affecting the share mortgage

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
Clauses
Relevant Industries

Banking

Financial Services

Investment Management

Private Equity

Corporate Finance

Legal Services

Business Services

Investment Banking

Asset Management

Securities Trading

Relevant Teams

Legal

Finance

Treasury

Compliance

Corporate Secretariat

Risk Management

Investment

Corporate Finance

Securities Administration

Transaction Management

Relevant Roles

Legal Counsel

Corporate Lawyer

Finance Director

Chief Financial Officer

Investment Manager

Security Trustee

Compliance Officer

Corporate Secretary

Treasury Manager

Risk Manager

Transaction Manager

Portfolio Manager

Investment Director

Legal Director

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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