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Seller Financing Agreement
"Need a Seller Financing Agreement under German law for the sale of industrial equipment worth €500,000 to a manufacturing company, with 20% down payment and the remaining amount financed over 5 years with quarterly payments starting March 2025."
1. Parties: Identification of the seller-financier and buyer-borrower with full legal names and addresses
2. Background: Context of the transaction, including description of the asset being sold and reason for seller financing
3. Definitions: Definitions of key terms used throughout the agreement
4. Sale Agreement: Core terms of the sale including asset description, purchase price, and transfer of ownership
5. Financing Terms: Loan amount, interest rate, payment schedule, and amortization details in compliance with German credit laws
6. Security Interest: Details of collateral, liens, or other security interests securing the financing
7. Representations and Warranties: Statements of fact and guarantees by both parties
8. Payment Terms: Detailed payment mechanics, including method, timing, and default provisions
9. Default and Remedies: Events of default and corresponding remedies, including acceleration rights
10. Insurance and Maintenance: Requirements for insurance and maintenance of the financed asset
11. Transfer and Assignment: Restrictions on transfer of the asset or assignment of the agreement
12. Notices: Process for formal communications between parties
13. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction
14. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments
1. Third-Party Guarantee: Terms of any third-party guarantee or surety, used when additional security is required
2. Prepayment Provisions: Terms for early repayment, including any penalties or discounts, if early repayment is allowed
3. Tax Provisions: Specific tax arrangements and responsibilities, particularly relevant for commercial properties
4. Property Management: Required for real estate transactions with specific management requirements
5. Consumer Protection Clauses: Additional protective clauses required when the buyer is a consumer under German law
6. Multiple Asset Provisions: Special provisions for financing multiple assets under the same agreement
7. Regulatory Compliance: Specific provisions ensuring compliance with KWG and other relevant regulations
8. Interest Rate Adjustment: Terms for variable interest rates if applicable
1. Schedule A - Asset Description: Detailed description of the asset(s) being sold and financed
2. Schedule B - Payment Schedule: Detailed amortization schedule showing all payments, interest, and principal
3. Schedule C - Security Documentation: Forms and details of security interests, including mortgage documentation if applicable
4. Schedule D - Insurance Requirements: Specific insurance requirements and minimum coverage levels
5. Appendix 1 - Due Diligence Documents: List of due diligence documents provided by seller regarding the asset
6. Appendix 2 - Form of Transfer Documents: Templates for asset transfer documentation
7. Appendix 3 - Calculation of Interest: Detailed methodology for interest calculation and adjustment if applicable
8. Appendix 4 - Required Notices: Templates for required notices under the agreement
Authors
Real Estate
Manufacturing
Automotive
Agriculture
Retail
Construction
Equipment and Machinery
Small Business
Commercial Property
Industrial Assets
Legal
Finance
Commercial
Risk Management
Compliance
Treasury
Business Development
Real Estate
Asset Management
Credit Management
Operations
Chief Financial Officer
Finance Director
Legal Counsel
Corporate Lawyer
Business Development Manager
Commercial Director
Risk Manager
Credit Manager
Asset Manager
Real Estate Manager
Contract Manager
Treasury Manager
Financial Controller
Business Owner
Property Developer
Compliance Officer
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