Inter Credit Agreement Template for Netherlands

The Inter Credit Agreement is utilized when multiple credit providers are involved in financing arrangements, requiring clear structuring of their respective rights and obligations under Dutch law. This document is essential for complex financing transactions where various lenders provide different types of credit facilities to the same borrower or group of borrowers. It establishes the hierarchy of payments, sharing of security, voting rights for enforcement actions, and procedures for managing defaults. The agreement ensures compliance with Dutch financial regulations while providing a framework for lender coordination and decision-making. It typically includes detailed provisions on security sharing, enforcement procedures, payment waterfall arrangements, and modification provisions, all structured within the Dutch legal framework and financial regulatory requirements.

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

2. Background: Context of the agreement and relationship between the parties

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

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

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

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

7. Interest: Interest rates, calculation methods, and payment provisions

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

9. Prepayment and Cancellation: Provisions for early repayment and facility cancellation

10. Tax Gross Up and Indemnities: Tax-related provisions and associated indemnities

11. Increased Costs: Provisions dealing with changes in costs due to regulatory or other changes

12. Representations and Warranties: Standard representations and warranties given by the borrower

13. Information Undertakings: Obligations to provide financial and other information

14. General Undertakings: General covenants and obligations of the borrower

15. Events of Default: Circumstances constituting default and consequences

16. Changes to Parties: Provisions regarding assignment and transfer rights

17. Payment Mechanics: Administrative provisions regarding payments

18. Notices: Communication requirements and contact details

19. Calculations and Certificates: Provisions regarding calculations and evidence of amounts due

20. General Provisions: Miscellaneous legal provisions including partial invalidity, remedies, amendments

21. Governing Law and Jurisdiction: Choice of Dutch law and jurisdiction provisions