Secured Demand Note Template for Germany

The Secured Demand Note is commonly used in commercial financing transactions where lenders require both immediate access to repayment and collateral protection. Under German law, this document type provides a flexible financing solution while ensuring robust security protection. When implementing a Secured Demand Note, parties must carefully consider German security interest requirements, registration obligations, and enforcement mechanisms. The document typically includes provisions for the loan amount, security arrangements, demand features, and enforcement rights, all structured to comply with German legal requirements and market practice. This instrument is particularly useful in scenarios where lenders need the flexibility of demand features while maintaining security over specific assets.

1. Parties: Identification of the lender and borrower with full legal names and addresses

2. Background: Context of the secured demand note, including the purpose of the loan and security arrangement

3. Definitions: Key terms used throughout the document, including specific German legal terminology where relevant

4. Loan Amount and Terms: Principal amount, currency, and basic terms of the loan

5. Security Provisions: Description of the collateral and security arrangements, including perfection requirements

6. Demand Features: Terms under which the note becomes payable on demand

7. Interest: Interest rate, calculation method, and payment terms

8. Representations and Warranties: Standard declarations by the borrower regarding their capacity and the security

9. Covenants: Ongoing obligations of the borrower regarding the loan and security

10. Events of Default: Circumstances that trigger default and enforcement rights

11. Enforcement: Rights and procedures for enforcing the security interest

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