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No Loan Agreement for Germany

No Loan Agreement Template for Germany

This document is a No Loan Agreement governed by German law, which formalizes an arrangement where a creditor agrees not to demand repayment of an existing debt for a specified period. The agreement complies with German civil law requirements, particularly the Bürgerliches Gesetzbuch (BGB), and includes provisions for debt acknowledgment, repayment restrictions, and relevant conditions. It addresses key aspects such as interest treatment, events of default, and security arrangements while ensuring compliance with German documentation and form requirements.

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No Loan Agreement

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What is a No Loan Agreement?

A No Loan Agreement is commonly used in corporate restructuring, debt management, and inter-company financing scenarios under German law. This document type is particularly relevant when parties need to formalize an arrangement where an existing debt will not be called for repayment during a specified period, often to support business continuity or restructuring efforts. The agreement must comply with German legal requirements, particularly the provisions of the Bürgerliches Gesetzbuch (BGB) regarding debt acknowledgment and contractual obligations. It typically includes detailed provisions about the debt amount, duration of the no-loan commitment, interest treatment, and any conditions or events that might trigger early termination. The document is especially important in group company contexts or when businesses need temporary relief from debt obligations while maintaining legal certainty for all parties involved.

What sections should be included in a No Loan Agreement?

1. Parties: Identification and details of the creditor and debtor

2. Background: Context of the existing debt and relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Debt Acknowledgment: Formal acknowledgment of the existing debt amount and its origin

5. No Loan Commitment: Core provisions stating the creditor's commitment not to demand repayment and any conditions attached

6. Duration: Period for which the no loan commitment remains valid

7. Interest: Provisions regarding any interest applicable during the no loan period

8. Representations and Warranties: Statements of fact and assurances from both parties

9. Events of Default: Circumstances under which the no loan commitment may be terminated

10. Notices: Communication requirements and contact details for formal notices

11. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction for disputes

12. Execution: Signature blocks and execution requirements

What sections are optional to include in a No Loan Agreement?

1. Security: Details of any security arrangements, used when the debt is secured

2. Subordination: Provisions regarding ranking of the debt, included when there are multiple creditors

3. Information Rights: Creditor's rights to receive financial information, included for corporate debtors

4. Tax Provisions: Special tax considerations, included when tax implications need to be addressed

5. Assignment and Transfer: Rights to assign or transfer the agreement, included when transferability is important

6. Costs and Expenses: Allocation of costs, included when significant expenses are anticipated

What schedules should be included in a No Loan Agreement?

1. Schedule 1 - Debt Details: Detailed breakdown of the existing debt amount and its components

2. Schedule 2 - Payment History: Historical record of payments and debt origin

3. Schedule 3 - Security Details: Details of any security arrangements if applicable

4. Appendix A - Form of Notices: Template forms for formal notices under the agreement

5. Appendix B - Corporate Authorizations: Copies of relevant corporate approvals and authorizations

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 & Financial Services

Corporate Finance

Investment Management

Real Estate

Manufacturing

Retail & Consumer

Technology

Healthcare

Energy & Utilities

Professional Services

Relevant Teams

Legal

Finance

Treasury

Corporate Finance

Risk Management

Credit

Compliance

Corporate Secretariat

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Lawyer

Legal Counsel

Financial Controller

Restructuring Officer

Credit Manager

Investment Manager

Relationship Manager

Risk Manager

Company Secretary

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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