Document background
The Line of Credit Promissory Note is a crucial financial document used in the Netherlands when establishing flexible borrowing arrangements between lenders and borrowers. This document is particularly relevant when parties need to create a revolving credit facility that allows for multiple drawdowns up to a predetermined limit, rather than a single fixed loan amount. The agreement, governed by Dutch law and compliant with the Burgerlijk Wetboek, is commonly used in both business financing and sophisticated consumer lending arrangements. It contains essential provisions regarding credit limits, interest calculations, drawdown mechanisms, repayment terms, and security arrangements, while incorporating specific Dutch legal requirements for financial instruments. The document serves as both evidence of debt and a binding agreement outlining the terms of the credit facility, making it a fundamental tool in Dutch commercial and consumer finance.
