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The Line of Credit Contract is a fundamental financing document used when a borrower requires flexible access to credit from a financial institution in Germany. This agreement establishes a maximum credit limit that can be repeatedly drawn down and repaid over time, offering more flexibility than a traditional term loan. The document must comply with German banking regulations, including the German Banking Act (KWG) and Civil Code (BGB), particularly §§ 488-507 regarding loan agreements. It is typically used for working capital financing, operational expenses, or as a liquidity buffer. The agreement includes detailed provisions on interest calculation, security requirements, borrower obligations, and bank's rights, while incorporating necessary consumer protection provisions when the borrower is an individual. The document structure reflects German legal requirements for financial contracts while accommodating standard banking practices.

1. Parties: Identification of the lender (credit institution) and borrower with full legal names and addresses

2. Background: Context of the credit facility and relationship between the parties

3. Definitions: Key terms used throughout the agreement, including banking-specific terminology

4. Facility Details: Credit limit, purpose, availability period, and drawing mechanisms

5. Interest and Fees: Interest calculation method, applicable rates, commitment fees, and other charges

6. Repayment Terms: Minimum payments, payment schedule, and repayment mechanisms

7. Conditions Precedent: Prerequisites for initial and subsequent drawings

8. Representations and Warranties: Borrower's confirmations regarding legal status, authority, and financial condition

9. Borrower Covenants: Ongoing obligations including financial covenants and information requirements

10. Events of Default: Circumstances leading to default and consequences thereof

11. Bank's Rights and Remedies: Actions available to the bank upon default or breach

12. Data Protection and Confidentiality: GDPR compliance and information handling requirements

13. Notices: Communication methods and contact details

14. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction