Addendum Loan Agreement Template for Germany

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Key Requirements PROMPT example:

Addendum Loan Agreement

"I need an Addendum Loan Agreement under German law to extend our existing €5 million corporate loan's maturity date to March 15, 2025, and adjust the interest rate from EURIBOR +2% to EURIBOR +2.5%, while keeping all other terms unchanged."

Document background
The Addendum Loan Agreement is a crucial document used when parties need to modify an existing loan agreement without creating an entirely new contract. It's commonly employed when circumstances require adjustments to financial terms, extension of maturity dates, modification of covenants, or other changes to the original loan structure. Under German law, such amendments must be precisely documented to ensure legal certainty and compliance with the German Civil Code (BGB) and Banking Act (KWG). This document is particularly relevant in scenarios involving refinancing, financial restructuring, or when the borrower's circumstances necessitate modifications to the original loan terms. The addendum must be carefully drafted to maintain consistency with the original agreement while clearly delineating the specific changes being implemented.
Suggested Sections

1. Parties: Identification of all parties to the original loan agreement, including their full legal names, addresses, and registration details where applicable

2. Background: Reference to the original loan agreement (date, parties), reason for the addendum, and confirmation that the parties wish to amend the original agreement

3. Definitions: Key terms used in the addendum, including reference to definitions in the original agreement that remain applicable

4. Amendments: Precise description of each modification to the original agreement, clearly referencing the relevant sections being amended

5. Effective Date: Specification of when the amendments take effect

6. Confirmation of Other Terms: Confirmation that all other terms of the original agreement remain unchanged and in full force and effect

7. Entire Agreement: Confirmation that this addendum forms part of the original agreement

8. Governing Law: Confirmation that German law continues to govern the agreement

9. Execution: Signature blocks for all parties

Optional Sections

1. Representations and Warranties: Additional or updated representations and warranties, if required by the nature of the amendments

2. Conditions Precedent: Any conditions that must be satisfied before the amendments become effective

3. Security Confirmation: Confirmation that existing security remains in place and extends to obligations as amended, used when the original loan is secured

4. Costs and Expenses: Allocation of costs related to the preparation and execution of the addendum, if different from the original agreement

5. Third Party Consents: Reference to and inclusion of any required third party consents, such as from guarantors or security providers

6. Tax Provisions: Any tax-related implications of the amendments, if applicable

Suggested Schedules

1. Schedule of Amendments: Detailed table or list showing the original clause language and the amended clause language in parallel

2. Updated Payment Schedule: If payment terms are being modified, a revised amortization or payment schedule

3. Amended Financial Covenants: If financial covenants are being modified, detailed calculations and new threshold values

4. Consent Letters: Copies of any third-party consent letters required for the amendments

5. Updated Security Documents: If security arrangements are affected, copies of any amended security documentation

Authors

Alex Denne

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

Relevant legal definitions
Relevant Industries

Banking & Financial Services

Real Estate

Manufacturing

Technology

Healthcare

Retail

Infrastructure

Energy

Transportation

Construction

Agriculture

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit

Corporate Finance

Banking Operations

Executive Management

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Banking Lawyer

Loan Officer

Credit Manager

Relationship Manager

Risk Manager

Compliance Officer

Financial Controller

Managing Director

Business Development Manager

Corporate Finance 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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