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Secured Loan Agreement for Germany

Secured Loan Agreement Template for Germany

This document is a comprehensive Secured Loan Agreement governed by German law, establishing the terms and conditions under which a lender provides financing to a borrower with the benefit of security interests over specified assets. The agreement incorporates provisions compliant with German civil law (BGB), banking regulations (KWG), and relevant security interest requirements. It details the loan facility, security arrangements, repayment terms, events of default, and enforcement mechanisms, while ensuring compliance with German legal requirements for creating and perfecting security interests. The document includes specific provisions for the creation, maintenance, and enforcement of security interests under German law, along with necessary representations, warranties, and covenants.

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What is a Secured Loan Agreement?

The Secured Loan Agreement is a fundamental financing document used when a lender provides funding to a borrower against specific collateral or security interests under German law. This document type is essential for various financing transactions, from corporate loans to asset financing, where the lender requires security to mitigate credit risk. The agreement must comply with German legal requirements, particularly the Civil Code (BGB) and Banking Act (KWG), and includes detailed provisions for creating and perfecting security interests, loan disbursement conditions, repayment terms, and enforcement mechanisms. The Secured Loan Agreement is structured to protect the lender's interests while providing clear terms for the borrower, incorporating mandatory German law provisions and market-standard protections.

What sections should be included in a Secured Loan Agreement?

1. Parties: Identification of the lender, borrower, and any security providers or guarantors

2. Background: Context of the loan agreement and security arrangement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. The Facility: Core loan terms including amount, purpose, and drawdown conditions

5. Interest and Fees: Interest calculation, payment terms, and any applicable fees

6. Repayment and Prepayment: Repayment schedule, prepayment terms and conditions

7. Security: Description of security interests, creation, and perfection requirements

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

9. Covenants: Positive and negative obligations of the borrower

10. Events of Default: Circumstances constituting default and consequences

11. Enforcement: Rights and procedures for enforcing security interests

12. Costs and Expenses: Allocation of costs and expenses related to the loan and security

13. Notices: Communication requirements and contact details

14. Assignment and Transfer: Rules for transferring rights and obligations under the agreement

15. General Provisions: Boilerplate clauses including governing law, jurisdiction, and severability

What sections are optional to include in a Secured Loan Agreement?

1. Guarantees: Required when third-party guarantees are part of the security package

2. Tax Provisions: Detailed tax clauses needed for cross-border transactions or specific tax arrangements

3. Currency Provisions: Required for loans involving multiple currencies

4. Insurance: Detailed insurance requirements for specific types of secured assets

5. Consumer Protection Clauses: Required when the borrower is a consumer under German law

6. Subordination: Required when there are multiple creditors or existing security interests

7. Bank Account Provisions: Detailed account management rules for complex banking arrangements

8. Financial Covenants: Required for corporate borrowers with specific financial metrics to maintain

What schedules should be included in a Secured Loan Agreement?

1. Schedule 1 - Property Description: Detailed description of any real property serving as security

2. Schedule 2 - Secured Assets: Comprehensive list and description of all assets serving as security

3. Schedule 3 - Drawdown Conditions: Specific conditions and required documents for loan drawdown

4. Schedule 4 - Repayment Schedule: Detailed amortization schedule if applicable

5. Schedule 5 - Form of Drawdown Request: Template for borrower to request loan disbursement

6. Schedule 6 - Security Documentation: Forms of security documents required under German law

7. Schedule 7 - Existing Security Interests: List of any pre-existing security interests on the secured assets

8. Schedule 8 - Contact Details: Detailed contact information for all parties and their representatives

Authors

Alex Denne

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

Jurisdiction

Germany

Publisher

Ƶ

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions



























































Clauses




































Relevant Industries

Banking & Financial Services

Real Estate

Manufacturing

Construction

Retail

Technology

Agriculture

Healthcare

Energy

Infrastructure

Transportation & Logistics

Professional Services

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit

Corporate Banking

Commercial Banking

Business Development

Operations

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Banking Lawyer

Treasury Manager

Credit Risk Manager

Loan Officer

Relationship Manager

Compliance Officer

Security Trustee

Corporate Secretary

Finance Manager

Risk Officer

Business Development Manager

Industries







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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