Permanent Loan Agreement Template for Germany

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Key Requirements PROMPT example:

Permanent Loan Agreement

"I need a Permanent Loan Agreement for our museum to receive three 19th-century paintings from a private collector in Munich, with special conditions for public display and attribution requirements, to be delivered by March 2025."

Document background
The Permanent Loan Agreement (Dauerleihe) is a crucial document used when parties wish to establish a long-term lending arrangement without transferring ownership rights. This agreement type is particularly common in Germany and is governed by German civil law, specifically the German Civil Code (BGB). It is typically used for valuable assets such as artwork, scientific equipment, industrial machinery, or cultural artifacts where the owner wishes to maintain ownership while granting extensive usage rights to another party. The document addresses key aspects such as maintenance responsibilities, insurance requirements, usage conditions, and potential termination scenarios. It differs from regular loan agreements due to its permanent nature and requires careful consideration of long-term implications for both parties.
Suggested Sections

1. Parties: Identification and details of the lender and borrower

2. Background: Context of the agreement and relationship between the parties

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

4. Subject Matter of the Loan: Detailed description of the item(s) being loaned permanently

5. Term and Permanency: Establishment of the permanent nature of the loan and any conditions that could trigger termination

6. Delivery and Return: Terms regarding the initial delivery of the item(s) and circumstances under which they might need to be returned

7. Use Rights and Restrictions: Specific rights granted to the borrower and any restrictions on use

8. Care and Maintenance: Borrower's obligations regarding maintenance and preservation of the loaned item(s)

9. Risk and Insurance: Allocation of risk and insurance requirements

10. Costs and Expenses: Responsibility for costs related to maintenance, insurance, and other expenses

11. Representations and Warranties: Statements of fact and guarantees by both parties

12. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes

13. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments

Optional Sections

1. Intellectual Property Rights: Required when the loaned item(s) involve intellectual property rights or digital content

2. Third Party Rights: Needed when the loaned item(s) may be subject to third party claims or rights

3. Export Control: Required when the loaned item(s) may be subject to export control regulations

4. Environmental Requirements: Necessary when the loaned item(s) have specific environmental handling requirements

5. Security Interest: Required when the lender wishes to maintain a security interest in the loaned item(s)

6. Sub-lending Rights: Optional section defining whether and under what conditions the borrower may sub-lend the item(s)

7. Display and Attribution: Required for items intended for public display, such as artwork or exhibition pieces

Suggested Schedules

1. Schedule 1 - Item Description: Detailed technical description and condition report of the loaned item(s)

2. Schedule 2 - Maintenance Requirements: Specific maintenance and care instructions for the loaned item(s)

3. Schedule 3 - Insurance Requirements: Detailed insurance specifications and coverage requirements

4. Schedule 4 - Delivery Protocol: Procedures for initial delivery and handling of the loaned item(s)

5. Appendix A - Photographs: Visual documentation of the item(s) condition at the time of loan

6. Appendix B - Certificates: Relevant certificates of authenticity, origin, or technical specifications

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 Industries

Arts and Culture

Education

Manufacturing

Research and Development

Museum and Heritage

Technology

Science and Laboratory

Public Sector

Industrial Equipment

Academic

Entertainment

Healthcare

Automotive

Real Estate

Non-profit

Relevant Teams

Legal

Operations

Collections Management

Facilities Management

Risk and Compliance

Asset Management

Procurement

Contract Administration

Property Management

Cultural Heritage

Research Administration

Equipment Management

Relevant Roles

Legal Counsel

Contract Manager

Museum Curator

Collections Manager

Asset Manager

Facilities Director

Cultural Heritage Officer

Operations Manager

Property Manager

Research Director

Equipment Manager

Procurement Manager

Risk Manager

Compliance Officer

General Counsel

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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