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Debt Waiver Agreement Template for Germany

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Key Requirements PROMPT example:

Debt Waiver Agreement

"I need a Debt Waiver Agreement under German law for our bank to waive €2.5 million in loan debt owed by a manufacturing company, with the waiver conditional upon the debtor company maintaining specific financial ratios through March 2025."

Document background
The Debt Waiver Agreement is a crucial document in German corporate and financial practice, primarily used when a creditor agrees to forfeit their right to collect a debt, either partially or in full. This type of agreement is particularly relevant in scenarios involving corporate restructuring, financial distress, or group company reorganizations. The document must comply with German legal requirements, especially the provisions of the Bürgerliches Gesetzbuch (BGB) regarding debt forgiveness (Erlassvertrag). It needs to clearly document the debt being waived, any conditions attached to the waiver, and potential tax implications. The agreement is often used in conjunction with broader corporate reorganization efforts or as part of financial rescue packages, and may require specific corporate approvals and documentation of security releases.
Suggested Sections

1. Parties: Identification of the creditor(s) and debtor(s), including full legal names, addresses, and registration details if companies

2. Background: Context of the debt relationship, reason for the waiver, and reference to original debt documentation

3. Definitions: Definition of key terms including 'Debt', 'Waiver Date', and any specific terms relevant to the waiver conditions

4. Debt Acknowledgment: Clear statement of the existing debt amount and its origin

5. Waiver Declaration: Express declaration of the debt waiver, specifying the exact amount being waived

6. Effective Date: Specification of when the waiver becomes effective

7. Legal Consequences: Statement of the legal effects of the waiver including release of security if applicable

8. Representations and Warranties: Basic representations about authority to enter into agreement and validity of waiver

9. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes

10. Execution: Signature blocks and execution requirements

Optional Sections

1. Conditions Precedent: Used when the waiver is subject to certain conditions being fulfilled

2. Partial Waiver Provisions: Required when only part of the debt is being waived

3. Revival Clause: Used when the debt might be revived under certain circumstances

4. Tax Provisions: Needed when specific tax consequences need to be addressed

5. Corporate Approvals: Required when specific corporate authorizations are needed for the waiver

6. Multiple Creditor Provisions: Needed when multiple creditors are involved in the waiver

7. Security Release: Required when existing security needs to be released as part of the waiver

8. Confidentiality: Optional section for keeping the terms of the waiver confidential

Suggested Schedules

1. Schedule 1 - Debt Details: Detailed breakdown of the debt being waived, including principal, interest, and other amounts

2. Schedule 2 - Original Debt Documentation: Copies or details of the original agreements or documents creating the debt

3. Schedule 3 - Corporate Authorizations: Copies of relevant corporate approvals or resolutions

4. Schedule 4 - Conditions Precedent: List of any conditions that must be met before the waiver becomes effective

5. Schedule 5 - Security Release Documentation: Forms or documents relating to the release of any security (if applicable)

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 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 and Financial Services

Corporate Finance

Real Estate

Manufacturing

Retail

Construction

Technology

Healthcare

Energy

Infrastructure

Private Equity

Asset Management

Professional Services

Relevant Teams

Legal

Finance

Treasury

Tax

Compliance

Corporate Restructuring

Credit Risk

Corporate Development

Accounting

Business Recovery

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Restructuring Officer

Treasury Manager

Financial Controller

Debt Recovery Manager

Credit Risk Manager

Insolvency Practitioner

Corporate Finance Manager

Tax Director

Compliance Officer

Business Recovery Specialist

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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