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Financing Contract Agreement for the Netherlands

Financing Contract Agreement Template for Netherlands

A comprehensive financing agreement governed by Dutch law that establishes the terms and conditions for the provision of credit facilities between a lender and borrower. The document details the loan amount, interest calculations, repayment terms, security arrangements, and covenant requirements in accordance with Dutch civil and financial regulatory requirements. It incorporates relevant provisions from the Dutch Civil Code (Burgerlijk Wetboek) and Financial Supervision Act (Wet op het financieel toezicht), ensuring compliance with Dutch banking and finance regulations while establishing clear rights and obligations for all parties involved.

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Financing Contract Agreement

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What is a Financing Contract Agreement?

A Financing Contract Agreement under Dutch law serves as the primary documentation for establishing a lending relationship between financial institutions and borrowers. This document is essential when structuring medium to large-scale financing transactions in or involving Dutch jurisdiction, whether for corporate lending, project finance, or asset-based financing. The agreement comprehensively covers facility terms, conditions precedent, representations and warranties, covenants, and security arrangements, while ensuring compliance with Dutch financial regulations and the Civil Code. It's particularly crucial for transactions where Dutch law is chosen as the governing law, either due to the parties' location or their preference for the Dutch legal framework's reliability and sophistication in financial matters.

What sections should be included in a Financing Contract Agreement?

1. Parties: Identification and details of the lender(s) and borrower(s), including registration numbers and addresses

2. Background: Context of the financing arrangement, purpose of the loan, and any relevant historical information

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. The Facility: Description of the loan facility, including amount, purpose, and any tranches

5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

6. Drawdown: Procedures and requirements for drawing down the loan facility

7. Interest: Interest rate(s), calculation methods, and payment provisions

8. Repayment: Terms and schedule for repayment of the principal amount

9. Prepayment: Provisions for early repayment, including any penalties or notices required

10. Representations and Warranties: Statements of fact and assurances given by the borrower

11. Covenants: Ongoing obligations of the borrower throughout the loan term

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

13. Security: Details of any security or guarantees provided for the loan

14. Costs and Expenses: Allocation of costs and expenses related to the facility

15. Notices: Communication requirements and contact details

16. Assignment and Transfer: Rules regarding transfer of rights and obligations under the agreement

17. Governing Law and Jurisdiction: Specification of Dutch law as governing law and jurisdiction for disputes

18. Execution: Signature blocks and execution requirements

What sections are optional to include in a Financing Contract Agreement?

1. Syndication Provisions: Required when multiple lenders are involved or syndication is contemplated

2. Tax Provisions: Detailed tax arrangements when complex tax implications exist

3. Currency Provisions: Required when the facility involves multiple currencies

4. Insurance Requirements: Detailed insurance obligations when specific insurance coverage is required

5. Agent Provisions: Required when a facility agent is appointed

6. Security Trustee Provisions: Required when a security trustee structure is used

7. Accordion Facility: Provisions for increasing the facility amount, if applicable

8. Green Loan Provisions: Required for environmentally sustainable financing arrangements

9. Regulatory Compliance: Specific regulatory requirements for regulated borrowers or sectors

What schedules should be included in a Financing Contract Agreement?

1. Schedule 1 - Conditions Precedent Documents: List of required documents and conditions to be satisfied before drawdown

2. Schedule 2 - Form of Drawdown Request: Template for borrower to request loan disbursements

3. Schedule 3 - Repayment Schedule: Detailed schedule of repayment dates and amounts

4. Schedule 4 - Financial Covenants: Detailed financial ratios and calculations

5. Schedule 5 - Security Documents: List and copies of security documents

6. Schedule 6 - Forms of Transfer Certificates: Ƶ for transferring loan participations

7. Appendix A - Interest Calculation Examples: Examples showing interest calculations under different scenarios

8. Appendix B - Compliance Certificate: Template for periodic compliance reporting

9. Appendix C - Know Your Customer Requirements: List of required KYC documentation

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

Netherlands

Publisher

Ƶ

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions



































































Clauses









































Relevant Industries

Banking and Financial Services

Corporate Finance

Real Estate

Infrastructure

Energy

Manufacturing

Technology

Healthcare

Retail

Agriculture

Transportation and Logistics

Construction

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Corporate Banking

Risk Management

Compliance

Credit

Corporate Finance

Transaction Management

Securities and Collateral

Documentation

Loan Administration

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Lawyer

Legal Counsel

Finance Manager

Credit Risk Manager

Relationship Manager

Compliance Officer

Financial Controller

Corporate Banking Manager

Loan Officer

Transaction Manager

Senior Finance Associate

Legal Director

Banking Partner

Securities Officer

Risk 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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