Revolving Promissory Note Template for Germany

The Revolving Promissory Note is commonly used in German corporate financing when companies need flexible access to funding while maintaining a straightforward documentation structure. It is particularly useful for businesses requiring ongoing working capital or those with cyclical funding needs. The document combines elements of traditional promissory notes (Schuldscheine) with revolving facility mechanics, allowing borrowers to draw, repay, and re-draw funds within an agreed facility limit. This instrument is governed by German law and typically involves lower documentation and administration costs compared to full facility agreements. It's especially suitable for mid-sized to large corporations with established banking relationships and can be used either on a standalone basis or as part of a broader financing structure.

1. Parties: Identification of the issuer (borrower) and the payee (lender)

2. Background: Brief context of the revolving promissory note arrangement

3. Definitions: Key terms used in the document, including 'Facility Limit', 'Interest Period', and 'Repayment Date'

4. Promise to Pay: Unconditional promise to pay the principal amount and interest, including the revolving nature of the facility

5. Facility Terms: Maximum facility amount, drawdown mechanisms, and revolving nature of the facility

6. Interest: Interest rate, calculation method, and payment dates

7. Repayment: Terms for repayment of principal, including the revolving aspect and final maturity

8. Drawing Mechanics: Process and conditions for making drawings under the revolving facility

9. Representations: Basic representations about capacity and authority to issue the note

10. Events of Default: Circumstances under which the note becomes immediately due and payable

11. Form and Transferability: Format of the note and conditions for transfer or assignment

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