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Loan Collateral Agreement
"I need a German law Loan Collateral Agreement for a €5 million commercial loan to be executed by March 2025, where the collateral consists of manufacturing equipment and receivables, with the borrower being a medium-sized manufacturing company in Bavaria."
1. Parties: Identification of the lender, borrower, and any security providers or guarantors
2. Background: Context of the underlying loan agreement and purpose of the security arrangement
3. Definitions: Key terms used throughout the agreement, including specific German law concepts
4. Creation of Security Interest: Legal provisions establishing the security interest over the collateral
5. Description of Secured Obligations: Definition of the obligations being secured, including principal, interest, and other amounts
6. Collateral Description: Detailed description of the assets being provided as collateral
7. Representations and Warranties: Statements about ownership, condition, and status of the collateral
8. Perfection Requirements: Steps required to perfect the security interest under German law
9. Maintenance and Protection of Collateral: Obligations regarding the preservation and maintenance of the collateral
10. Events of Default: Circumstances triggering enforcement rights
11. Enforcement Rights: Procedures and rights for enforcing the security interest
12. Costs and Expenses: Allocation of costs related to the creation and maintenance of the security
13. Notices: Communication requirements and procedures between parties
14. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction
1. Insurance Requirements: Required when collateral needs specific insurance coverage
2. Third Party Rights: Needed when other creditors have existing rights over the collateral
3. Registration Requirements: Required for collateral types requiring public registration
4. Special Provisions for Intellectual Property: Include when IP assets form part of the collateral
5. Bank Account Pledges: Required when bank accounts are part of the collateral
6. Release Provisions: Detailed release procedures if partial release of collateral is contemplated
7. Parallel Debt: Required in syndicated lending scenarios
8. Tax Provisions: Include when specific tax implications need to be addressed
1. Schedule 1 - Collateral Description: Detailed technical description of all collateral assets
2. Schedule 2 - Form of Notice: Standard forms for various notices required under the agreement
3. Schedule 3 - Perfection Requirements: Checklist of actions required for perfection
4. Schedule 4 - Existing Security Interests: List of any pre-existing security interests over the collateral
5. Schedule 5 - Required Insurance: Details of required insurance coverage for the collateral
6. Appendix A - Registration Forms: Templates for any required registration documents
7. Appendix B - Power of Attorney: Form of power of attorney for perfection and enforcement actions
Authors
Banking
Financial Services
Real Estate
Manufacturing
Technology
Infrastructure
Energy
Healthcare
Retail
Agriculture
Transportation
Construction
Legal
Finance
Risk Management
Corporate Banking
Credit
Compliance
Treasury
Transaction Management
Corporate Finance
Loan Administration
Security Administration
Documentation
Legal Counsel
Finance Director
Credit Risk Manager
Loan Officer
Corporate Banking Manager
Security Trustee
Compliance Officer
Transaction Manager
Chief Financial Officer
Treasury Manager
Risk Management Officer
Corporate Finance Manager
Investment Banking Associate
Portfolio Manager
Restructuring Officer
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