International Loan Agreement Template for Denmark

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International Loan Agreement

Document background
The International Loan Agreement is a sophisticated financial instrument used when establishing cross-border lending arrangements under Danish law. It is particularly relevant for transactions involving Danish lenders or borrowers, or where parties have specifically chosen Danish law as the governing law for their lending relationship. The agreement comprehensively addresses all aspects of the lending arrangement, including facility terms, security arrangements, representations, covenants, and enforcement mechanisms. It incorporates specific requirements of Danish financial and banking regulations while considering international banking practices and cross-border implications. This document type is essential for corporate financing, project finance, acquisition finance, and other significant international lending transactions where at least one party requires or prefers Danish law governance.
Suggested Sections

1. Parties: Identification of the lender(s) and borrower(s) with full legal names and registration details

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

3. Definitions and Interpretation: Definitions of key terms and interpretation rules used throughout the agreement

4. The Facility: Details of the loan amount, purpose, and availability period

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

6. Drawdown: Procedures and requirements for requesting and making loan disbursements

7. Interest: Interest rate, calculation methods, and payment periods

8. Repayment: Terms and schedule for repayment of the principal amount

9. Prepayment: Conditions and procedures for early repayment

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

11. Covenants: Positive and negative obligations of the borrower during the loan period

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

13. Changes to Parties: Rules regarding assignment and transfer of rights and obligations

14. Payments: Payment mechanics, currency, and treatment of non-business days

15. Notices: Communication methods and contact details for formal notices

16. Governing Law and Jurisdiction: Confirmation of Danish law as governing law and jurisdiction for disputes

17. Execution: Signature blocks and execution formalities

Optional Sections

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

2. Syndication Provisions: Required for syndicated loans with multiple lenders

3. Tax Gross-up and Indemnities: Detailed tax provisions needed for cross-border transactions with specific tax implications

4. Increased Costs: Provisions dealing with regulatory changes affecting the lender's costs

5. Market Disruption: Provisions for dealing with disruption in the reference rate markets

6. Anti-corruption and Sanctions: Detailed compliance provisions for high-risk jurisdictions or regulated lenders

7. Green Loan Provisions: Required for environmentally-linked loans with specific green commitments

8. Multi-currency Provisions: Required if the loan can be drawn in multiple currencies

Suggested Schedules

1. Schedule 1 - Conditions Precedent Documents: Detailed list of required documents and conditions to be satisfied

2. Schedule 2 - Form of Drawdown Request: Template for borrower to request loan disbursements

3. Schedule 3 - Repayment Schedule: Detailed amortization schedule if applicable

4. Schedule 4 - Form of Transfer Certificate: Template for transferring loan participations

5. Schedule 5 - Financial Covenants Calculations: Detailed methods for calculating financial covenants

6. Appendix A - Security Documents: Forms of security documents if applicable

7. Appendix B - Fee Letters: Separate fee arrangements between parties

8. Appendix C - Know Your Customer Requirements: List of required KYC documentation

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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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