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Promissory Note And Deed Of Trust
"I need a Promissory Note and Deed of Trust under German law for a €5 million commercial property loan to a medium-sized enterprise, with quarterly interest payments at 4.5% per annum, maturing in March 2025, including cross-default provisions with our existing facility agreement."
1. Parties: Identification of the lender (beneficiary), borrower (promisor), and trustee
2. Background: Context of the loan agreement and security arrangement
3. Definitions: Key terms used throughout the document, including property description, loan amount, and security interests
4. Promise to Pay: Core provision containing the borrower's unconditional promise to pay the specified sum, including principal amount, interest rate, and payment terms
5. Security Grant: Creation of the security interest in the specified real property, including detailed property description and registration requirements
6. Trustee Powers and Duties: Specification of trustee's role, responsibilities, and authority in managing the security interest
7. Default Provisions: Events of default and consequences, including acceleration rights and enforcement procedures
8. Property Maintenance and Insurance: Borrower's obligations regarding property maintenance, insurance, and taxes
9. Assignment and Transfer: Provisions regarding the transferability of the note and security interest
10. Governing Law and Jurisdiction: Specification of German law application and jurisdiction for disputes
11. Execution: Formal execution requirements including notarization provisions
1. Prepayment Provisions: Optional terms allowing early repayment, including any prepayment penalties - include if early repayment is to be permitted
2. Additional Security: Provisions for additional collateral or guarantees - include if additional security is being provided
3. Insurance Requirements: Detailed insurance obligations beyond standard requirements - include if specific insurance requirements are needed
4. Property Use Restrictions: Specific limitations on property use - include if there are special property use conditions
5. Consumer Protection Provisions: Additional protective clauses required by German consumer law - include if borrower is a consumer
6. Cross-Default Provisions: Links to other loan documents - include if part of larger financing arrangement
7. Trustee Succession: Detailed provisions for trustee replacement - include if specific succession rules are needed
1. Property Description Schedule: Detailed legal description of the mortgaged property, including land register details
2. Payment Schedule: Amortization schedule showing payment dates, amounts, and interest calculations
3. Insurance Requirements Schedule: Detailed list of required insurance coverage and terms
4. Property Title Documentation: Copies of relevant land register excerpts and title documents
5. Form of Transfer Certificate: Template for documenting any future transfers of the note or security interest
6. Required Notices: Forms of notices required for various circumstances under the agreement
Authors
Banking & Financial Services
Real Estate
Construction
Property Development
Mortgage Lending
Commercial Property
Residential Property
Legal Services
Insurance
Investment Management
Legal
Real Estate
Credit Risk
Compliance
Treasury
Investment Management
Property Management
Transaction Management
Trust Services
Mortgage Services
Documentation
Legal Counsel
Real Estate Manager
Loan Officer
Credit Risk Manager
Property Manager
Investment Manager
Compliance Officer
Treasury Manager
Real Estate Developer
Portfolio Manager
Transaction Manager
Trust Officer
Banking Executive
Mortgage Specialist
Real Estate Attorney
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