Investment Guarantee Agreement Template for Germany

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Key Requirements PROMPT example:

Investment Guarantee Agreement

"I need an Investment Guarantee Agreement under German law for a €50 million renewable energy project in Bavaria, where our bank will act as guarantor for a consortium of international investors, with the guarantee period starting March 1, 2025."

Document background
The Investment Guarantee Agreement is a critical document used when significant investments require protection against various risks and potential losses. This agreement, governed by German law, establishes a legally binding relationship between a guarantor (typically a financial institution or government agency) and an investor, providing security for investments in various sectors. The document outlines the scope of the guarantee, conditions for claims, fee structures, and compliance requirements. It is particularly important in cross-border transactions and large-scale investments where risk mitigation is essential. The agreement must comply with German financial regulations, including the Bürgerliches Gesetzbuch (BGB), Kapitalanlagegesetzbuch (KAGB), and relevant EU directives, making it a robust instrument for investment protection in the German and European context.
Suggested Sections

1. Parties: Identification of the guarantor, investor, and any other relevant parties

2. Background: Context of the investment and purpose of the guarantee

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Guarantee: Detailed description of what risks and investments are covered by the guarantee

5. Guarantee Amount and Limits: Specification of the maximum guarantee amount and any limitations

6. Conditions Precedent: Conditions that must be met before the guarantee becomes effective

7. Representations and Warranties: Statements of fact and assurances from both parties

8. Obligations of the Investor: Ongoing duties and responsibilities of the investor

9. Guarantee Claims Process: Procedures for making and processing guarantee claims

10. Fees and Costs: Payment terms for guarantee fees and associated costs

11. Term and Termination: Duration of the guarantee and circumstances for early termination

12. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction

13. Notices: Communication procedures between parties

14. Miscellaneous Provisions: Standard boilerplate clauses including severability, entire agreement, etc.

Optional Sections

1. Security: Include when additional security or collateral is required for the guarantee

2. Step-In Rights: Include when guarantor requires rights to take control of investment in specific circumstances

3. Currency Provisions: Include for cross-border investments with currency risk considerations

4. Tax Provisions: Include when specific tax implications need to be addressed

5. Regulatory Compliance: Include when specific regulatory requirements need detailed treatment

6. Assignment and Transfer: Include when transfer of guarantee rights needs to be specifically regulated

7. Force Majeure: Include when specific force majeure provisions are required beyond standard German law

8. Confidentiality: Include when specific confidentiality obligations are required

Suggested Schedules

1. Schedule 1 - Investment Description: Detailed description of the underlying investment being guaranteed

2. Schedule 2 - Guarantee Fee Schedule: Detailed breakdown of fees, payment dates, and calculation methods

3. Schedule 3 - Claim Forms and Procedures: Templates and procedural requirements for making guarantee claims

4. Schedule 4 - Required Documentation: List of documents required for guarantee activation and claims

5. Schedule 5 - Reporting Requirements: Templates and timing for required regular reporting

6. Appendix A - Power of Attorney: If required for specific actions under the guarantee

7. Appendix B - Compliance Certificates: Templates for ongoing compliance certification

8. Appendix C - Key Contacts: List of authorized representatives and contact details for all parties

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
Clauses
Relevant Industries

Banking and Financial Services

Private Equity

Infrastructure

Real Estate

Energy

Manufacturing

Technology

Healthcare

Telecommunications

Construction

International Trade

Mining and Natural Resources

Relevant Teams

Legal

Finance

Risk Management

Compliance

Treasury

Corporate Development

Investment

Operations

Due Diligence

Business Development

International Relations

Regulatory Affairs

Relevant Roles

Chief Financial Officer

Investment Director

Legal Counsel

Risk Manager

Compliance Officer

Investment Manager

Corporate Finance Director

Treasury Manager

General Counsel

Investment Analyst

Senior Corporate Lawyer

Portfolio Manager

Director of Operations

Financial Controller

Business Development Director

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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