Document background
The Credit and Security Agreement is a fundamental document used in Austrian financing transactions where a lender provides credit facilities to a borrower with the support of collateral or security interests. This agreement combines both the credit facility terms and security arrangements in a single document, streamlining the documentation process while ensuring compliance with Austrian banking regulations, security laws, and civil code requirements. It is particularly useful in commercial lending scenarios where the borrower offers various types of assets as security, such as real estate, movable assets, or receivables. The document must adhere to specific Austrian legal requirements regarding security creation, perfection, and enforcement, while also incorporating standard banking practices and regulatory obligations under Austrian law. This type of agreement is commonly used for both term loans and revolving credit facilities, and can be adapted for bilateral or syndicated lending arrangements.
