Bilateral Credit Agreement Generator for Germany

The Bilateral Credit Agreement is a fundamental financing document used when one party (typically a financial institution) agrees to provide credit to another party under German law. This agreement is essential for documenting lending relationships and is commonly used across various sectors for corporate financing, project financing, or general commercial purposes. The document must comply with German legal requirements, including the German Civil Code (BGB), particularly §§ 488-507 governing loan agreements, and the German Banking Act (KWG). It includes comprehensive provisions covering facility terms, conditions precedent, representations, covenants, and events of default. The agreement is particularly important in the German market where formal documentation requirements are strictly observed and specific regulatory considerations must be addressed.

1. Parties: Identification of the lender and borrower with full legal names and addresses

2. Background: Brief description of the transaction and its purpose

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

4. The Facility: Core terms of the credit facility including amount, purpose, and availability period

5. Conditions Precedent: Conditions that must be satisfied before drawdown

6. Drawdown: Procedures and requirements for utilization of the facility

7. Interest: Interest calculation, periods, rates, and payment provisions

8. Repayment: Terms for repayment of the loan including scheduled payments

9. Prepayment: Voluntary and mandatory prepayment provisions

10. Taxes: Tax provisions, gross-up obligations, and tax indemnities

11. Increased Costs: Provisions dealing with changes in law or regulations affecting the lender's costs

12. Representations and Warranties: Borrower's representations and warranties

13. Information Undertakings: Borrower's obligations to provide financial and other information

14. General Undertakings: Borrower's positive and negative covenants

15. Events of Default: Circumstances constituting default and consequences

16. Changes to Parties: Assignment and transfer provisions

17. Payment Mechanics: Payment times, currencies, and procedures

18. Notices: Communication methods and contact details

19. Calculations and Certificates: Basis of calculations and evidence of amounts due

20. Partial Invalidity: Severability provisions

21. Remedies and Waivers: Rights and remedies of the parties

22. Amendments and Waivers: Procedures for modifying the agreement

23. Governing Law: German law as governing law

24. Enforcement: Jurisdiction and enforcement provisions