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Promissory Note And Deed Of Trust Template for Germany

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Key Requirements PROMPT example:

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."

Document background
The Promissory Note And Deed Of Trust is a fundamental document in German secured lending, particularly in real estate financing transactions. It provides lenders with both a clear evidence of debt and a strong security position through real property collateral. This document type is commonly used when financing commercial or residential property purchases, refinancing existing debt, or securing business loans with real estate. The German legal framework requires specific formalities, including notarization and registration in the land register (Grundbuch), making it a highly formal and regulated instrument. The document must comply with German Civil Code (BGB) requirements, banking regulations, and property law provisions. It's particularly valuable in situations requiring a structured security arrangement with professional trustee oversight of the collateral.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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

Real Estate

Construction

Property Development

Mortgage Lending

Commercial Property

Residential Property

Legal Services

Insurance

Investment Management

Relevant Teams

Legal

Real Estate

Credit Risk

Compliance

Treasury

Investment Management

Property Management

Transaction Management

Trust Services

Mortgage Services

Documentation

Relevant Roles

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

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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