Loan Agreement Director To Company Generator for Germany

A Loan Agreement Director To Company under German law is utilized when a director wishes to provide financial support to their company through a formal loan arrangement. This document is particularly relevant during periods of expansion, working capital needs, or when traditional financing options may be less favorable. The agreement must comply with German corporate law requirements, particularly regarding related party transactions and arm's length principles. It includes detailed provisions on loan amount, interest rates, repayment terms, and security arrangements if applicable. Special attention is given to documentation requirements under German commercial law and tax implications. The agreement also addresses potential insolvency scenarios and subordination requirements as mandated by German insolvency regulations. This type of agreement requires careful consideration of corporate governance aspects and often needs approval from other board members or shareholders.

1. Parties: Identification of the director as lender and the company as borrower, including full legal names, registration details, and addresses

2. Background: Context of the loan, including the director's role in the company and confirmation of corporate approval for the transaction

3. Definitions: Key terms used throughout the agreement, including financial definitions and technical terms

4. Loan Amount and Purpose: Specification of the loan amount, currency, and intended use of funds

5. Interest: Interest rate, calculation method, and payment schedule in compliance with arm's length principles

6. Repayment Terms: Schedule and method of repayment, including principal and interest payment dates

7. Representations and Warranties: Standard declarations by both parties, including company's authority to enter into the agreement

8. Covenants: Ongoing obligations of the company, including financial reporting and use of funds

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

10. Termination: Conditions and process for early termination of the agreement

11. Notices: Communication requirements and contact details for formal notices

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