Document background
The Trade Finance Agreement serves as the primary contractual framework for providing trade finance facilities in Germany and cross-border transactions. It is typically used when businesses require financing for international trade operations, including import/export activities, supply chain finance, or documentary credit facilities. The agreement must comply with German banking regulations, particularly the German Banking Act (KWG) and Commercial Code (HGB), while also adhering to EU financial regulations and international trade practices. The document comprehensively addresses facility terms, security requirements, risk allocation, documentary requirements, and compliance obligations. It includes specific provisions for different trade finance products such as letters of credit, guarantees, or supply chain finance facilities, and can be customized based on the particular needs of the transaction and parties involved.
