Common Loan Agreement Template for Denmark

The Common Loan Agreement serves as a standardized legal instrument for documenting loan arrangements under Danish law. It is typically used when a lender (usually a financial institution) provides financing to a borrower, whether for business expansion, asset acquisition, or other commercial purposes. The agreement comprehensively addresses all aspects of the lending relationship, including loan disbursement, interest calculations, repayment terms, and security arrangements. Being governed by Danish law, it incorporates specific requirements from the Danish Contracts Act, Credit Agreements Act, and Financial Business Act, ensuring compliance with local regulatory requirements while providing flexibility to accommodate various commercial lending scenarios.

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

2. Background: Context of the loan agreement and brief description of the parties' intentions

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

4. The Loan: Principal amount, currency, and purpose of the loan

5. Conditions Precedent: Conditions that must be satisfied before the loan can be drawn

6. Drawdown: Procedures and requirements for drawing down the loan

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

8. Repayment: Repayment schedule, method, and currency of payments

9. Prepayment: Terms and conditions for early repayment

10. Representations and Warranties: Statements of fact and assurances given by the borrower

11. Covenants: Ongoing obligations of the borrower during the loan term

12. Events of Default: Circumstances that constitute default and consequences

13. Costs and Expenses: Allocation of costs related to the loan agreement

14. Notices: How formal communications between parties should be made

15. Assignment and Transfer: Rules regarding transfer of rights and obligations

16. Governing Law and Jurisdiction: Confirmation of Danish law governance and jurisdiction

17. Execution: Signature blocks and execution requirements