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A Cross Collateral Agreement is utilized when parties wish to establish a comprehensive security arrangement where multiple assets or forms of collateral secure various obligations. This document, governed by German law, is particularly relevant in financing arrangements where a lender or group of lenders require security over various assets to secure different facilities or obligations. The agreement details how different security interests interact, their relative priorities, and enforcement mechanisms, all while ensuring compliance with German legal requirements. It's commonly used in complex financing structures, project finance, or when multiple borrowers or facilities exist within a corporate group. The document includes specific provisions required under German civil law (BGB), banking regulations (KWG), and relevant security interest registration requirements, making it essential for secured lending transactions in Germany.

1. Parties: Identification of all parties to the agreement, including the security provider(s) and the secured party/parties

2. Background: Context of the agreement, reference to underlying obligations, and purpose of the cross-collateral arrangement

3. Definitions and Interpretation: Definitions of key terms, interpretation rules, and reference to German legal concepts

4. Secured Obligations: Description of all obligations secured by the cross-collateral arrangement

5. Grant of Security Interest: Creation and perfection of security interests over various collateral types

6. Cross-Collateralization Provisions: Mechanisms for cross-collateralization and relationship between different security interests

7. Representations and Warranties: Standard and specific representations regarding ownership, authority, and collateral status

8. Covenants: Ongoing obligations regarding maintenance, insurance, and preservation of collateral

9. Events of Default: Circumstances triggering enforcement rights

10. Enforcement Rights and Remedies: Rights and procedures for enforcing security interests under German law

11. Priority and Ranking: Establishment of priority rights among different security interests

12. Notices: Communication requirements and procedures between parties

13. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction

14. Miscellaneous: Standard boilerplate provisions adapted to German law requirements