Document background
A Line of Credit Promissory Note is commonly used in Austrian business and banking practice when parties seek to establish a flexible borrowing arrangement with enhanced enforceability. This document type combines the convenience of a revolving credit facility with the legal certainty of a promissory note under Austrian law. It is particularly useful for businesses requiring ongoing access to working capital or individuals needing flexible credit arrangements. The document typically includes detailed provisions on credit limits, drawdown procedures, interest calculations, and repayment terms, all structured to comply with Austrian banking regulations and civil law requirements. It's especially relevant when the lender requires additional security in the form of a negotiable instrument while providing revolving credit facilities.
