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International Loan Agreement for Germany

International Loan Agreement Template for Germany

A comprehensive legal agreement governed by German law that establishes the terms and conditions for an international loan facility between a lender and borrower. The document details all aspects of the lending arrangement, including loan amount, interest calculations, repayment terms, security arrangements, representations and warranties, and events of default. It incorporates specific requirements of German banking and civil law while accommodating international banking practices and cross-border elements. The agreement includes provisions for regulatory compliance, including German Banking Act (KWG) requirements and international financial regulations.

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International Loan Agreement

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What is a International Loan Agreement?

The International Loan Agreement is a sophisticated financial instrument used for cross-border lending transactions where German law serves as the governing law. It is typically employed when either the lender or borrower (or both) operate internationally, but the parties choose German law for its robust legal framework and enforcement mechanisms. The agreement comprehensively addresses all aspects of the lending relationship, from initial drawdown to final repayment, incorporating both German civil law requirements and international banking practices. It includes detailed provisions for security interests, regulatory compliance, and cross-border elements, making it suitable for complex international financing transactions. The document is particularly relevant when German banks or corporations are involved in international financing, or when foreign entities seek to utilize the German legal framework for their lending arrangements.

What sections should be included in a International Loan Agreement?

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

2. Background: Context of the loan agreement and brief description of the transaction

3. Definitions and Interpretation: Definitions of terms used throughout the agreement and rules of interpretation

4. The Facility: Details of the loan amount, purpose, and availability period

5. Interest: Interest rate provisions, calculation methods, and payment dates

6. Repayment: Terms of loan repayment, including schedule and prepayment provisions

7. Payments: Payment mechanics, currency, and business day conventions

8. Representations and Warranties: Borrower's confirmations regarding its status and capacity

9. Information Undertakings: Borrower's obligations to provide financial and other information

10. General Undertakings: Borrower's general operational and financial covenants

11. Events of Default: Circumstances constituting default and consequences

12. Changes to Parties: Rules for assignment and transfer of rights and obligations

13. Administration: Administrative provisions, notices, and calculations

14. Governing Law and Jurisdiction: Choice of German law and jurisdiction provisions

15. Execution: Signature blocks and execution formalities

What sections are optional to include in a International Loan Agreement?

1. Security: Required if the loan is secured by collateral, detailing security structure and enforcement

2. Guarantees: Include when third-party guarantees are part of the credit support

3. Multiple Currencies: Required for facilities offering multiple currency options

4. Syndication Provisions: Include for syndicated loans, covering facility agent and relationship between lenders

5. Tax Gross-Up and Indemnities: Detailed tax provisions for cross-border transactions

6. Increased Costs: Protection for lenders against regulatory changes affecting costs

7. Market Disruption: Provisions dealing with market disruption events

8. Anti-corruption and Sanctions: Required for international transactions with compliance concerns

What schedules should be included in a International Loan Agreement?

1. Conditions Precedent: List of documents and conditions required before drawdown

2. Form of Drawdown Request: Template for borrower to request loan disbursement

3. Repayment Schedule: Detailed amortization schedule if applicable

4. Form of Transfer Certificate: Template for transferring loan participations

5. Financial Covenants Calculations: Detailed methods for calculating financial covenants

6. Security Documents: Forms of security documentation if applicable

7. Contact Details: Administrative and notice details for all parties

8. Existing Security and Indebtedness: List of permitted existing security and debt

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

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions


































































Clauses










































Relevant Industries

Banking and Financial Services

Corporate Finance

Manufacturing

Real Estate

Infrastructure

Energy

Technology

Healthcare

Retail

Transportation

Telecommunications

Agriculture

Mining and Resources

Construction

Professional Services

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit

International Banking

Corporate Finance

Documentation

Loan Administration

Financial Control

Transaction Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Banking Lawyer

Compliance Officer

Risk Manager

Credit Manager

Financial Controller

Banking Relationship Manager

Loan Officer

Corporate Finance Manager

Senior Finance Manager

General Counsel

Company Secretary

Transaction Manager

Director of International Finance

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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