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Mortgage And Promissory Note
"I need a Mortgage and Promissory Note governed by German law for a €5 million syndicated loan facility secured against three commercial properties in Berlin, with closing expected in March 2025."
1. Parties: Identification of the lender (typically a bank), borrower, and any guarantors
2. Background: Context of the loan agreement and purpose of the mortgage
3. Definitions: Key terms used throughout the document
4. Property Details: Legal description of the mortgaged property, including land register details (Grundbuch information)
5. Loan Amount and Terms: Principal amount, interest rate, and repayment terms
6. Creation of Security Interest: Establishment of the mortgage (Grundschuld) and its registration requirements
7. Promissory Note Terms: Specific terms of the promissory note including payment obligations
8. Interest Provisions: Detailed interest calculation methods and payment schedules
9. Representations and Warranties: Borrower's confirmations regarding property ownership, authority to enter agreement, etc.
10. Borrower Covenants: Ongoing obligations of the borrower regarding property maintenance, insurance, etc.
11. Events of Default: Circumstances that trigger default and enforcement rights
12. Enforcement Rights: Lender's rights and procedures in case of default
13. Costs and Expenses: Allocation of costs including registration, notary fees, and enforcement costs
14. Notices: Communication requirements and contact details
15. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction
1. Multiple Property Provisions: Additional provisions when multiple properties secure the loan
2. Priority Agreement: Required when there are multiple charges on the property
3. Special Repayment Terms: Provisions for early repayment or special payment arrangements
4. Construction Provisions: Required when the mortgage relates to property under construction
5. Assignment Provisions: Terms governing the transfer of the mortgage or promissory note
6. Consumer Protection Clauses: Required when the borrower is a consumer rather than a business
7. Cross-Default Provisions: Links to other financing agreements if part of a larger facility
8. Insurance Requirements: Detailed insurance obligations beyond standard requirements
1. Property Description Schedule: Detailed legal description of the property including maps and land register excerpts
2. Payment Schedule: Amortization table showing principal and interest payments
3. Form of Promissory Note: Template of the promissory note to be issued
4. Insurance Requirements: Detailed specifications for required insurance coverage
5. Land Register Documentation: Copies of relevant Grundbuch entries and registration forms
6. Property Valuation: Professional valuation report of the secured property
7. Existing Encumbrances: List of existing charges or encumbrances on the property
8. Required Notices and Forms: Templates for various notices and forms required under the agreement
Authors
Banking & Financial Services
Real Estate
Construction & Development
Commercial Property
Residential Property
Agriculture (for agricultural land financing)
Industrial & Manufacturing
Retail
Hospitality & Tourism
Healthcare (medical facilities financing)
Legal
Real Estate Finance
Credit Risk
Compliance
Corporate Finance
Property Management
Treasury
Investment
Transaction Management
Portfolio Management
Documentation
Due Diligence
Real Estate Finance Manager
Mortgage Loan Officer
Legal Counsel
Property Finance Director
Credit Risk Manager
Real Estate Manager
Banking Relationship Manager
Compliance Officer
Property Developer
Real Estate Investment Manager
Corporate Finance Director
Transaction Manager
Portfolio Manager
Debt Finance Manager
Treasury Manager
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