Document background
A Letter Of Intent Bank Loan is commonly used in Danish banking practice as a preliminary step before entering into a formal loan agreement. This document is typically initiated when a potential borrower has had initial discussions with a bank and both parties wish to formalize their preliminary understanding before proceeding with detailed due diligence and documentation. The letter outlines key terms such as proposed loan amount, interest rate ranges, and major conditions precedent, while maintaining a non-binding nature except for specific provisions like confidentiality and exclusivity. Under Danish law, this document serves as a roadmap for the transaction, helping parties structure their expectations and outline the path to a formal loan agreement. It's particularly useful in complex financing situations where significant due diligence is required or where multiple stakeholders are involved.
