Document background
The Inter Corporate Loan Agreement is essential for documenting loans between corporate entities in Germany or those choosing German law as their governing law. It is typically used when one company provides financing to another, whether within the same corporate group or between unrelated entities. The agreement must comply with German civil law (BGB) and commercial law (HGB) requirements while incorporating international lending practices. It includes detailed provisions on loan terms, security (if any), financial covenants, and enforcement mechanisms. This document is particularly important for maintaining clear legal relationships between corporate lenders and borrowers, ensuring regulatory compliance, and providing certainty in case of disputes under German jurisdiction.
