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Commercial Credit Agreement Template for Germany

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Key Requirements PROMPT example:

Commercial Credit Agreement

"I need a Commercial Credit Agreement for a €50 million syndicated facility between Deutsche Bank AG as lead arranger, two other German banks as co-lenders, and a real estate development company, with the facility to be used for constructing a commercial property in Munich, with first drawdown planned for March 2025."

Document background
The Commercial Credit Agreement serves as the primary documentation for commercial lending transactions in Germany, establishing the legal framework for credit facilities provided by financial institutions to business entities. This document is essential when companies seek financing for business operations, expansion, or specific projects. It must comply with German banking regulations, including the Kreditwesengesetz (KWG) and Bürgerliches Gesetzbuch (BGB), while addressing specific requirements for commercial lending. The agreement typically includes comprehensive provisions for facility terms, security arrangements, covenants, and reporting requirements, tailored to meet both regulatory requirements and commercial needs. It's particularly important for ensuring legal certainty in commercial lending relationships and protecting both lender and borrower interests under German law.
Suggested Sections

1. Parties: Identification of the lender(s) and borrower(s), including their full legal names, registration details, and addresses

2. Background: Context of the credit facility, including the purpose of the loan and any relevant business relationship between the parties

3. Definitions: Detailed definitions of terms used throughout the agreement, including financial terms, calculation methods, and technical banking terminology

4. Facility Details: Core terms of the credit facility, including amount, currency, purpose, and facility type

5. Interest and Fees: Interest rate provisions, calculation methods, payment periods, and all applicable fees

6. Drawdown Conditions: Conditions precedent and procedural requirements for utilizing the facility

7. Repayment Terms: Repayment schedule, methods, and prepayment provisions

8. Representations and Warranties: Statements of fact and assurances given by the borrower

9. Covenants: Positive and negative obligations of the borrower during the facility period

10. Events of Default: Circumstances constituting default and their consequences

11. Boilerplate Provisions: Standard legal provisions including notices, amendments, governing law, and jurisdiction

Optional Sections

1. Security: Details of any collateral or security arrangements, used when the facility is secured

2. Guarantees: Terms of any guarantees provided, included when third-party guarantees are part of the credit structure

3. Syndication Provisions: Provisions governing multiple lenders, required for syndicated facilities

4. Tax Provisions: Detailed tax-related provisions, included when cross-border elements exist

5. Market Disruption: Provisions dealing with market disruption events, included for facilities with variable interest rates

6. Increased Costs: Provisions addressing regulatory changes affecting lenders' costs, included for longer-term facilities

7. Assignment and Transfer: Detailed provisions for transfer of participation, included when facility may be traded

Suggested Schedules

1. Conditions Precedent: Detailed list of documents and conditions required before facility utilization

2. Form of Drawdown Request: Template for borrower's facility utilization requests

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

4. Repayment Schedule: Detailed amortization schedule if applicable

5. Form of Compliance Certificate: Template for periodic compliance reporting

6. Security Details: Detailed description of security assets and perfection requirements

7. Fee Schedule: Detailed breakdown of all applicable fees and charges

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





























































Clauses



































Relevant Industries

Banking & Financial Services

Manufacturing

Real Estate

Infrastructure

Energy

Technology

Healthcare

Retail

Telecommunications

Transportation & Logistics

Industrial Services

Agriculture

Construction

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Banking

Credit Administration

Transaction Banking

Commercial Banking

Documentation

Corporate Finance

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Legal Counsel

Compliance Officer

Risk Manager

Credit Officer

Relationship Manager

Corporate Banking Manager

Finance Manager

Senior Loan Officer

Corporate Finance Director

Banking Operations Manager

Credit Risk Analyst

Legal Director

Treasury Director

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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