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The Government Promissory Note (Schuldscheindarlehen) is a crucial instrument in German public finance, traditionally used by the Federal Republic of Germany for raising capital through direct bilateral arrangements with institutional investors. This document type is particularly relevant when the government seeks to diversify its funding sources beyond traditional bond markets or wants to establish more personalized lending relationships. The instrument combines elements of both loans and securities, offering flexibility in terms of structure while maintaining the security of government-backed debt. It's governed by German law and typically includes detailed provisions for interest payments, transfer rights, and regulatory compliance. The document is especially important in the context of Germany's debt management strategy, providing an alternative to listed bonds and enabling direct placement with specific institutional investors.

1. Parties: Identification of the Federal Republic of Germany as issuer and the initial noteholder

2. Background: Context of the promissory note issuance and reference to relevant government authorization

3. Definitions: Key terms used throughout the document, including financial and technical terminology

4. Principal Amount and Currency: Specification of the note amount and denomination currency

5. Interest Rate and Calculation: Details of interest rate, calculation method, and payment frequency

6. Payment Terms: Specification of payment dates, payment method, and account details

7. Transfer and Assignment: Terms and conditions for transferring the note to other holders

8. Form of Note: Physical or electronic form of the note and registration requirements

9. Representations and Warranties: Standard declarations by the issuer regarding authority and validity

10. Taxation: Tax treatment and withholding requirements

11. Events of Default: Circumstances constituting default and consequent remedies

12. Notices: Communication requirements and contact details

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