Straight Note Loan Generator for Germany

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Key Requirements PROMPT example:

Straight Note Loan

"I need a Straight Note Loan agreement under German law for a €2.5 million corporate loan to finance equipment purchase, with quarterly interest payments and full principal repayment due on March 15, 2025, secured by company assets."

Document background
This document template is designed for use in German-governed lending transactions where a Straight Note Loan structure is desired. It is particularly suitable for situations where the borrower prefers or requires interest-only payments during the loan term, with a single principal repayment at maturity. The agreement incorporates all necessary provisions required under German law, including BGB §§ 488-490 compliance, and can be adapted for both corporate and consumer lending scenarios. The document includes sections covering loan amount, interest calculations, repayment terms, events of default, and enforcement provisions, while allowing for customization based on specific transaction requirements such as security arrangements or guarantees. It is structured to ensure enforceability under German law while maintaining commercial flexibility for the parties involved.
Suggested Sections

1. Parties: Identification of lender and borrower with full legal names, addresses, and registration details if applicable

2. Background: Context of the loan agreement and purpose of the facility

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

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

5. Interest Rate: Details of interest rate, calculation method, and payment periods

6. Disbursement: Conditions and procedure for disbursement of the loan

7. Repayment Terms: Specification of repayment date, method, and currency of repayment

8. Default Interest: Consequences and interest rate applicable in case of late payment

9. Representations and Warranties: Basic representations by the borrower regarding legal capacity and authority

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

11. Taxes: Treatment of taxes and which party bears tax obligations

12. Notices: Communication methods and addresses for formal notices

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

14. Signature Page: Execution blocks for all parties

Optional Sections

1. Security: Required if the loan is secured by collateral or guarantees

2. Insurance Requirements: Include if specific insurance coverage is required for the borrower

3. Financial Covenants: Include for corporate borrowers where financial metrics need to be maintained

4. Information Undertakings: Include for corporate borrowers to specify required financial reporting

5. Prepayment Terms: Include if early repayment is permitted and any associated penalties

6. Assignment and Transfer: Include if either party may transfer their rights or obligations

7. Costs and Expenses: Include if transaction costs are to be borne by the borrower

8. Consumer Protection Clauses: Required if the borrower is a consumer under German law

Suggested Schedules

1. Repayment Schedule: Detailed schedule showing repayment date and final payment amount

2. Form of Disbursement Request: Standard form for requesting loan disbursement

3. Conditions Precedent Documents: List of required documents to be provided before disbursement

4. Calculation of Interest: Detailed methodology for interest calculation

5. Form of Compliance Certificate: Template for periodic compliance certification if financial covenants are included

6. Security Documents: If applicable, forms of security agreements or guarantees

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
Relevant Industries

Banking and Financial Services

Corporate Finance

Real Estate

Manufacturing

Retail

Technology

Healthcare

Agriculture

Construction

Professional Services

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Banking

Documentation

Loan Administration

Risk Management

Corporate Finance

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Loan Officer

Credit Manager

Risk Manager

Compliance Officer

Banking Relationship Manager

Financial Controller

Corporate Banking Manager

Legal Director

Documentation Specialist

Credit Analyst

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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