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Loan Agreement And Promissory Note for Germany

Loan Agreement And Promissory Note Template for Germany

A German law-governed document that combines a loan agreement with a promissory note (Schuldschein), establishing the terms and conditions of a loan facility while incorporating a formal acknowledgment of debt. The document complies with German civil and commercial law requirements, particularly the German Civil Code (BGB) and relevant banking regulations. It details the loan amount, interest terms, repayment schedule, and includes specific provisions required for a valid promissory note under German law, making it a legally binding and enforceable instrument for both the lending arrangement and the documented debt obligation.

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Loan Agreement And Promissory Note

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What is a Loan Agreement And Promissory Note?

The Loan Agreement And Promissory Note is a specialized financing document used in the German market for both corporate and private lending transactions. It serves a dual purpose by documenting the loan relationship between parties while simultaneously creating a formal debt instrument (Schuldschein) that can be more easily transferred or enforced. This document is particularly useful when the lender requires enhanced transferability of the debt or stronger enforcement options under German law. The agreement must comply with specific requirements of German civil and commercial law, including detailed provisions about the loan terms, interest calculations, repayment obligations, and formal acknowledgment of debt. It's commonly used in medium to large-sized corporate financing, real estate transactions, and structured finance deals where German law governs the relationship between the parties.

What sections should be included in a Loan Agreement And Promissory Note?

1. Parties: Identification of the lender and borrower with full legal names and addresses

2. Background: Context of the loan agreement and promissory note, including the purpose of the loan

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

4. Loan Amount and Currency: Specification of the principal amount and currency of the loan

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

6. Drawdown: Conditions and procedures for disbursement of the loan

7. Repayment Terms: Schedule and methods of repayment, including any installment provisions

8. Promissory Note Terms: Specific provisions relating to the promissory note (Schuldschein) including acknowledgment of debt

9. Representations and Warranties: Standard declarations by the borrower about their legal and financial status

10. Events of Default: Circumstances that constitute default and consequences thereof

11. Governing Law and Jurisdiction: Confirmation of German law governance and jurisdiction for disputes

12. Execution: Signature blocks and execution formalities

What sections are optional to include in a Loan Agreement And Promissory Note?

1. Security: Required if the loan is secured by collateral or guarantees

2. Tax Provisions: Required if there are specific tax implications or withholding requirements

3. Assignment and Transfer: Include if the parties want to allow for transfer of the loan or promissory note

4. Financial Covenants: Include for corporate borrowers or larger loans requiring financial maintenance tests

5. Information Undertakings: Include for corporate borrowers to ensure regular financial reporting

6. Costs and Expenses: Include if there are specific arrangements for transaction costs and ongoing expenses

7. Consumer Protection Provisions: Required if the borrower is a consumer under German law

What schedules should be included in a Loan Agreement And Promissory Note?

1. Repayment Schedule: Detailed amortization table showing payment dates and amounts

2. Form of Promissory Note: Template of the Schuldschein meeting German law requirements

3. Drawdown Notice: Form of notice for requesting loan disbursement

4. Conditions Precedent Documents: List of required documents to be provided before drawdown

5. Security Documents: If applicable, forms of security agreements or guarantees

6. Calculation of Interest: Detailed methodology for interest calculations and examples

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

Jurisdiction

Germany

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions



















































Clauses



































Relevant Industries

Banking & Financial Services

Corporate Finance

Real Estate

Manufacturing

Energy

Infrastructure

Technology

Healthcare

Retail

Construction

Agriculture

Transportation & Logistics

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Banking

Loan Administration

Investment

Portfolio Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Banker

Loan Officer

Legal Counsel

Corporate Lawyer

Finance Manager

Credit Risk Manager

Relationship Manager

Compliance Officer

Financial Controller

Investment Manager

Portfolio Manager

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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