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Loan Swap Agreement for the Netherlands

Loan Swap Agreement Template for Netherlands

A Dutch law-governed Loan Swap Agreement is a sophisticated financial instrument used to hedge interest rate or currency risks associated with loan facilities. This agreement, subject to Dutch financial regulations and European Union directives, establishes the terms under which two parties agree to exchange (swap) payment streams over a specified period. The document incorporates specific provisions required under Dutch law, including Financial Supervision Act (Wft) compliance requirements, and addresses key aspects such as payment obligations, calculation methodologies, events of default, and early termination provisions. It includes comprehensive risk management provisions and regulatory compliance requirements specific to the Dutch financial markets.

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Loan Swap Agreement

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What is a Loan Swap Agreement?

The Loan Swap Agreement is a critical financial instrument used in the Dutch market to manage financial risks associated with loan facilities. It is particularly relevant when parties need to hedge against interest rate or currency fluctuations in their loan arrangements. The agreement, governed by Dutch law and compliant with both local and EU regulations, establishes the framework for exchanging payment obligations between parties. Typically used by financial institutions and corporate borrowers, the Loan Swap Agreement includes detailed provisions on payment calculations, events of default, early termination, and regulatory compliance. It must comply with the Dutch Financial Supervision Act (Wft) and European Market Infrastructure Regulation (EMIR), making it suitable for use in complex financial transactions where risk management is essential. The document includes schedules for economic terms, calculation methodologies, and standard settlement instructions, ensuring comprehensive coverage of all aspects of the swap arrangement.

What sections should be included in a Loan Swap Agreement?

1. Parties: Identification of the contracting parties, including full legal names, registration details, and addresses

2. Background: Context of the agreement, including reference to any underlying loans and the purpose of the swap arrangement

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation

4. Swap Terms: Core terms of the swap including notional amount, currencies, interest rates, and term

5. Payment Obligations: Detailed provisions regarding payment mechanics, timing, and calculation periods

6. Calculation and Rate Determination: Methods for calculating payments, determining relevant rates, and day count conventions

7. Representations and Warranties: Standard and swap-specific representations and warranties from both parties

8. Events of Default: Comprehensive list of events of default and their consequences

9. Early Termination: Provisions governing early termination events and the calculation of termination payments

10. Transfer and Assignment: Rules regarding the transfer of rights and obligations under the agreement

11. Tax Provisions: Allocation of tax risks and gross-up obligations

12. Notices: Communication procedures between parties

13. Governing Law and Jurisdiction: Confirmation of Dutch law governance and jurisdiction for disputes

14. Execution: Signature blocks and execution formalities

What sections are optional to include in a Loan Swap Agreement?

1. Credit Support Arrangements: Optional section for when collateral or other credit support is required, including margin calls and eligible collateral

2. Break Costs: Optional detailed provisions regarding break costs when not covered in standard termination provisions

3. Market Disruption: Optional detailed provisions for market disruption events when specific concerns exist about market stability

4. Third Party Rights: Optional provisions regarding rights of third parties, particularly relevant if there are guarantors or other involved parties

5. Multiple Branches: Optional section when parties operate through multiple branches or offices

6. Regulatory Compliance: Optional detailed section on specific regulatory requirements when parties are subject to special regulatory regimes

What schedules should be included in a Loan Swap Agreement?

1. Schedule 1 - Economic Terms: Detailed economic terms including payment dates, calculation periods, and fixed/floating rate details

2. Schedule 2 - Calculation Methods: Detailed methodology for calculations, including fallbacks and market disruption provisions

3. Schedule 3 - Form of Confirmation: Template for transaction confirmations under the agreement

4. Schedule 4 - Credit Support Document: Details of any credit support arrangements and eligible collateral if applicable

5. Schedule 5 - Contact Details: Detailed contact information for notices, payments, and operations

6. Appendix A - EMIR Requirements: Specific provisions to ensure compliance with EMIR regulations

7. Appendix B - Tax Forms: Required tax documentation and forms

8. Appendix C - Standard Settlement Instructions: Payment and settlement instructions for both parties

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

Netherlands

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions



















































Clauses




























Relevant Industries

Banking

Financial Services

Investment Management

Corporate Treasury

Insurance

Real Estate

Infrastructure

Energy

Manufacturing

Telecommunications

Relevant Teams

Treasury

Legal

Compliance

Risk Management

Trading

Operations

Finance

Credit

Documentation

Settlement

Portfolio Management

Structured Finance

Relevant Roles

Treasury Manager

Chief Financial Officer

Financial Controller

Risk Manager

Legal Counsel

Compliance Officer

Trading Manager

Structured Finance Manager

Corporate Finance Director

Credit Risk Officer

Operations Manager

Settlement Officer

Documentation Specialist

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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