Document background
The Loan and Guarantee Agreement is a crucial financial document used when a borrower requires funding with additional security provided by a third-party guarantor. This agreement is particularly relevant in the Danish market where strong legal protections for both lenders and guarantors are essential. The document serves multiple purposes: it establishes the primary lending relationship, defines the guarantee obligations, and ensures compliance with Danish financial regulations and EU requirements. The agreement is commonly used in corporate financing, project finance, and significant commercial transactions where additional security beyond the borrower's own covenant is required. It includes comprehensive provisions covering loan disbursement, repayment terms, guarantee scope, enforcement rights, and specific protections required under Danish law. The document must comply with Danish financial services regulations, contract law principles, and where applicable, consumer protection legislation.
