Document background
The Loan Commitment Agreement is a crucial financial document used in the Danish market when a lender agrees to make financing available to a borrower for a specific purpose and period. This document type is essential in commercial lending transactions, establishing the framework for the future loan relationship before the actual disbursement of funds. The agreement, governed by Danish law, outlines all critical aspects of the commitment, including the facility amount, availability period, conditions for drawdown, pricing, and key protections for both lender and borrower. It must comply with Danish financial regulations, including the Danish Financial Business Act and Credit Agreements Act, and typically precedes the actual loan agreement. The document is particularly important in project financing, corporate lending, and real estate transactions where securing committed funding is crucial for business planning.
