Document background
The Bank Credit Agreement serves as the primary documentation for credit facilities provided by banks in Germany. It is used when a bank extends credit to corporate or individual borrowers, establishing the legal framework for the lending relationship. The agreement must comply with German banking regulations, particularly the Banking Act (KWG) and Civil Code (BGB), while also adhering to EU financial services directives. This document typically includes detailed provisions on facility terms, drawdown conditions, security arrangements, borrower covenants, and reporting requirements. It's essential for both secured and unsecured lending, and can be adapted for various purposes from general corporate financing to specific project funding.
