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Intra Group Loan Agreement Template for Denmark

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Key Requirements PROMPT example:

Intra Group Loan Agreement

Document background
The Intra Group Loan Agreement is essential for documenting financial arrangements between related entities within a corporate group under Danish law. It is typically used when one group entity provides financing to another, whether for working capital, expansion, acquisition, or other business purposes. The agreement must comply with Danish legal requirements, including transfer pricing regulations, thin capitalization rules, and corporate benefit considerations. It needs to demonstrate arm's length terms to satisfy tax authorities and include appropriate corporate governance provisions. The document should be tailored to address specific requirements of Danish law while maintaining group treasury policies and ensuring proper risk allocation between group entities.
Suggested Sections

1. Parties: Identification of the lender and borrower entities, including registration numbers and addresses

2. Background: Context of the intra-group loan, relationship between the parties, and purpose of the loan

3. Definitions: Definitions of key terms used throughout the agreement

4. The Loan: Principal amount, currency, and basic terms of the loan

5. Interest: Interest rate, calculation method, payment dates, and default interest provisions

6. Drawdown: Conditions and procedures for drawing down the loan

7. Repayment: Terms and schedule for repayment of the loan

8. Prepayment: Conditions and procedures for early repayment

9. Representations and Warranties: Standard representations and warranties from both parties

10. Tax Provisions: Provisions regarding withholding tax, tax deductions, and transfer pricing compliance

11. Events of Default: Circumstances constituting default and consequences

12. Notices: Communication procedures between parties

13. Assignment: Restrictions on transfer or assignment of rights and obligations

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

15. Execution: Signature blocks and execution formalities

Optional Sections

1. Security: Include if the loan is to be secured by any assets or guarantees

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

3. Financial Covenants: Include if specific financial ratios or conditions need to be maintained

4. Information Undertakings: Include if specific reporting requirements are needed beyond standard group reporting

5. Tax Gross-Up: Include if there are specific provisions for tax gross-up between jurisdictions

6. Currency Provisions: Include if loan and payments are in different currencies requiring conversion provisions

7. Set-off Rights: Include if specific set-off rights need to be addressed

8. Costs and Expenses: Include if there are specific provisions about who bears transaction costs

Suggested Schedules

1. Repayment Schedule: Detailed schedule of repayment dates and amounts

2. Form of Drawdown Notice: Standard form for requesting drawdown of the loan

3. Interest Rate Calculation: Detailed methodology for calculating interest

4. Transfer Pricing Documentation: Documentation supporting the arm's length nature of the loan terms

5. Corporate Authorizations: Copies of relevant board resolutions and powers of attorney

6. Group Structure Chart: Diagram showing relationship between the parties within the group

7. Existing Indebtedness: Details of other relevant group loans or financial obligations

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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