Document background
A Loan Note is a fundamental financing document used to formalize lending arrangements under Danish law. It is typically employed when a party requires formal documentation of a loan transaction, whether for corporate financing, real estate acquisition, or other commercial purposes. The document serves multiple functions: it evidences the debt, sets out the terms of repayment, establishes security arrangements (if any), and provides legal protection for both lender and borrower. The Loan Note must comply with Danish legal requirements, including the Danish Contracts Act (Aftaleloven), Interest Act (Renteloven), and where applicable, financial regulations. It is particularly important in commercial lending scenarios where clear documentation of obligations and rights is essential for risk management and potential enforcement.
