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Bridge Loan Agreement Template for Belgium

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Key Requirements PROMPT example:

Bridge Loan Agreement

"I need a Bridge Loan Agreement governed by Belgian law for a 鈧5 million facility to finance a real estate development project in Brussels, with the bridge loan to be replaced by permanent financing by March 2025; the agreement should include security over the property and personal guarantees from the company directors."

Document background
The Bridge Loan Agreement serves as a crucial financing instrument in situations where immediate funding is required but permanent financing is not yet available. This document type is commonly used in corporate acquisitions, real estate transactions, or project financing where timing gaps exist between funding needs and long-term financing arrangements. The agreement, governed by Belgian law, must comply with specific Belgian banking regulations, financial services laws, and civil code requirements. A Bridge Loan Agreement typically includes detailed provisions on facility terms, drawdown conditions, interest calculations, security arrangements, and refinancing obligations. It is particularly important in the Belgian context to ensure compliance with local interest rate regulations, security registration requirements, and financial services legislation. The document serves as a legally binding commitment between the lender and borrower, establishing their respective rights and obligations during the bridge financing period.
Suggested Sections

1. Parties: Identification of the lender(s) and borrower(s), including their legal details and addresses

2. Background: Context of the bridge loan, including the purpose and intended permanent financing that will replace it

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

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

5. Conditions Precedent: Conditions that must be satisfied before the loan can be drawn

6. Drawdown: Procedures and requirements for drawing down the loan

7. Interest: Interest rate, calculation method, and payment terms

8. Repayment: Terms for repayment, including maturity date and refinancing requirements

9. Prepayment: Conditions and procedures for early repayment

10. Representations and Warranties: Statements of fact and assurances given by the borrower

11. Covenants: Ongoing obligations of the borrower during the loan period

12. Events of Default: Circumstances that constitute default and their consequences

13. Changes to Parties: Rules regarding assignment and transfer of rights and obligations

14. Administration: Administrative provisions including notices and calculations

15. Governing Law and Jurisdiction: Specification of Belgian law as governing law and jurisdiction provisions

Optional Sections

1. Security: Details of any security or collateral for the loan - include if the bridge loan is secured

2. Guarantee: Terms of any guarantee - include if there are guarantors

3. Take-out Financing: Specific provisions regarding the permanent financing - include if there's a committed take-out facility

4. Intercreditor Provisions: Terms governing relationship between different creditors - include if there are multiple lenders or existing creditors

5. Tax Gross-Up and Indemnities: Provisions for tax-related payments - include if tax considerations are material

6. Increased Costs: Provisions for dealing with regulatory changes affecting lender's costs - include if requested by lender

7. Market Flex: Terms allowing lender to modify terms based on market conditions - include for syndicated bridges

8. Currency Provisions: Include if loan involves multiple currencies

Suggested Schedules

1. Schedule 1 - Conditions Precedent Documents: List of all required documents and conditions to be satisfied before drawdown

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

3. Schedule 3 - Repayment Schedule: If applicable, detailed schedule of repayment dates and amounts

4. Schedule 4 - Form of Compliance Certificate: Template for periodic confirmation of compliance with loan terms

5. Schedule 5 - Security Documents: If secured, list and copies of security documentation

6. Schedule 6 - Take-out Financing Terms: If applicable, key terms of the permanent financing arrangement

7. Appendix A - Calculation of Interest: Detailed methodology for interest calculations

8. Appendix B - Forms of Notices: Standard forms for various notices required under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


























































Clauses












































Relevant Industries

Banking and Financial Services

Real Estate

Private Equity

Construction and Development

Infrastructure

Manufacturing

Healthcare

Technology

Energy

Telecommunications

Professional Services

Retail

Hospitality

Relevant Teams

Legal

Finance

Treasury

Corporate Development

Risk Management

Compliance

Credit

Corporate Banking

Investment Banking

Corporate Finance

Transaction Advisory

Deal Advisory

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Lawyer

Legal Counsel

Banking Lawyer

Financial Controller

Credit Manager

Risk Manager

Corporate Finance Manager

Investment Manager

Managing Director

CEO

Transaction Manager

Compliance Officer

Company Secretary

Finance Manager

Head of Corporate Banking

Relationship Manager

Senior Loan Officer

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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