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Group Loan Agreement Form Template for Germany

A comprehensive legal document governed by German law that establishes the terms and conditions for a loan provided to multiple borrowers acting as a group. The agreement incorporates specific provisions required under German banking regulations and civil code (Bürgerliches Gesetzbuch), including joint and several liability arrangements, detailed repayment structures, and compliance with German banking sector requirements. It addresses the rights and obligations of all group members, security arrangements, default provisions, and includes necessary documentation for regulatory compliance under German financial services laws.

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What is a Group Loan Agreement Form?

The Group Loan Agreement Form is a specialized financial instrument used when multiple borrowers seek to obtain financing as a collective entity under German law. This document is particularly relevant when several parties wish to share loan obligations while maintaining individual accessibility to portions of the loan amount. The agreement must comply with German banking regulations, including the Kreditwesengesetz (Banking Act) and relevant provisions of the Bürgerliches Gesetzbuch (Civil Code). It typically includes detailed sections on joint liability, individual member obligations, security arrangements, and group governance structures. The document is commonly used in cooperative ventures, small business consortiums, and group investment projects where multiple parties need to access shared financing while providing mutual support and collective security.

What sections should be included in a Group Loan Agreement Form?

1. Parties: Identification of all parties including the lender(s) and all members of the borrower group

2. Background: Context of the loan agreement and relationship between the parties

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

4. Loan Amount and Purpose: Specification of the total loan amount, individual allocations within the group, and permitted use of funds

5. Interest and Fees: Details of interest rate(s), calculation methods, and any applicable fees

6. Drawdown Conditions: Prerequisites and procedures for accessing the loan funds

7. Repayment Terms: Schedule and methods of repayment, including individual group members' obligations

8. Joint and Several Liability: Provisions establishing the collective responsibility of group members

9. Representations and Warranties: Statements of fact and assurances from the borrower group

10. Covenants: Ongoing obligations and restrictions on borrower group activities

11. Events of Default: Circumstances constituting default and consequences thereof

12. Security: Details of any collateral or security arrangements

13. Governing Law and Jurisdiction: Specification of German law application and jurisdiction for disputes

What sections are optional to include in a Group Loan Agreement Form?

1. Group Representative: Appointment and powers of a group representative, used when the group designates a specific member to act on behalf of all

2. Individual Exit Provisions: Procedures for individual members leaving the group, used in longer-term loans

3. New Member Accession: Process for adding new members to the borrower group, relevant for flexible group structures

4. Guarantors: Terms relating to third-party guarantors, if applicable

5. Insurance Requirements: Specific insurance obligations, relevant when loan security includes insurable assets

6. Cross-Default Provisions: Terms dealing with defaults under other loans, relevant for borrowers with multiple financing arrangements

7. Tax Provisions: Specific tax-related terms, relevant when tax implications are significant

What schedules should be included in a Group Loan Agreement Form?

1. Schedule 1 - Borrower Group Details: Detailed information about each group member including contact details and individual loan allocations

2. Schedule 2 - Repayment Schedule: Detailed amortization schedule showing payment dates and amounts

3. Schedule 3 - Conditions Precedent: List of documents and conditions required before loan drawdown

4. Schedule 4 - Security Details: Specific details of any security or collateral provided

5. Schedule 5 - Form of Drawdown Request: Template for requesting loan disbursements

6. Schedule 6 - Form of Accession Deed: Template for new members joining the borrower group

7. Appendix A - KYC Requirements: Documentation required for compliance with German money laundering regulations

8. Appendix B - Notice Details: Contact information and procedures for formal notices under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Germany

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use

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