Document background
The Simple Loan Agreement is designed for use in Austria when one party (the lender) agrees to provide a defined sum of money to another party (the borrower) under specific repayment terms. This document is particularly suitable for straightforward lending arrangements where complex syndication or extensive security arrangements are not required. The agreement ensures compliance with Austrian legislation, particularly the Austrian Civil Code (ABGB) and the Interest Act (Zinsengesetz), while providing a clear framework for the loan relationship. It includes essential provisions regarding loan amount, interest calculation, repayment schedule, default scenarios, and basic representations and warranties. The Simple Loan Agreement is commonly used for business loans, personal lending, or intra-company financing where a formal documentation of the lending arrangement is required.
