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Interim Loan Agreement Template for Denmark

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Key Requirements PROMPT example:

Interim Loan Agreement

Document background
The Interim Loan Agreement is designed for situations requiring temporary or bridge financing under Danish law. It is commonly used when permanent financing is pending, during corporate restructuring, or in time-sensitive transaction scenarios. The document comprehensively outlines the terms of the interim facility, including amount, purpose, interest, repayment terms, and any security arrangements, all within the framework of Danish financial regulations. This type of agreement is particularly crucial in time-sensitive business situations where immediate funding is required before long-term financing can be arranged. The Interim Loan Agreement must comply with Danish financial regulations, including the Danish Financial Business Act, Interest Act, and relevant EU directives, making it suitable for both domestic and cross-border transactions involving Danish entities or Danish law.
Suggested Sections

1. Parties: Identification of the lender(s) and borrower(s) with full legal names and registration details

2. Background: Context of the interim loan, including purpose and any related transactions

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. The Facility: Details of the loan amount, purpose, and availability period

5. Conditions Precedent: Conditions that must be satisfied before the loan can be drawn

6. Drawdown: Procedures and requirements for requesting and making loan disbursements

7. Interest: Interest rate, calculation method, and payment dates

8. Repayment: Terms for repayment including final maturity date and any interim payments

9. Prepayment: Conditions and procedures for early repayment

10. Representations and Warranties: Standard declarations made by the borrower about their status and capacity

11. Undertakings: Borrower's obligations during the loan period

12. Events of Default: Circumstances that would trigger default and lender's remedies

13. Fees and Expenses: Any fees payable and allocation of costs

14. Payments: Payment mechanics, currency, and timing

15. Notices: Communication procedures between parties

16. Governing Law and Jurisdiction: Confirmation of Danish law governance and jurisdiction

Optional Sections

1. Security: Details of any security or guarantees - include if the loan is secured

2. Tax Gross Up and Indemnities: Include if tax implications need specific handling

3. Increased Costs: Include if lender needs protection against regulatory cost changes

4. Multiple Lenders: Include if there is more than one lender, covering voting rights and decision-making

5. Assignment and Transfer: Include if parties want to allow transfer of loan participations

6. Subordination: Include if the loan needs to be subordinated to other debt

7. Currency Provisions: Include for multi-currency facilities or if currency risk needs addressing

8. Break Costs: Include if early repayment might trigger additional costs

Suggested Schedules

1. Conditions Precedent Documents: List of required documents and conditions to be satisfied before drawdown

2. Form of Drawdown Request: Template for borrower to request loan disbursement

3. Repayment Schedule: If applicable, detailed schedule of repayment dates and amounts

4. Form of Compliance Certificate: Template for periodic confirmation of compliance with loan terms

5. Security Documents: If secured, details of security arrangements and documentation

6. Existing Financial Indebtedness: List of borrower's existing debt obligations

7. Contact Details: Detailed contact information for all parties and their representatives

8. Financial Covenants Calculations: If applicable, methodology for calculating financial covenants

Authors

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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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