Document background
The Permanent Loan Agreement is a specialized financial instrument used when parties intend to establish a long-term lending arrangement without a fixed repayment schedule. Common in Danish corporate and family business contexts, this document type is particularly useful for internal group financing, family business funding, or strategic long-term investments. The agreement must comply with Danish law requirements, including the Danish Contracts Act and Credit Agreements Act, while addressing specific terms such as interest provisions, reporting obligations, and circumstances that might trigger repayment. The document includes comprehensive provisions for ongoing monitoring and compliance, reflecting the permanent nature of the arrangement while protecting both lender and borrower interests.
