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Loss Share Agreement Template for Netherlands

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Key Requirements PROMPT example:

Loss Share Agreement

"I need a Loss Share Agreement under Dutch law between our bank and an investment fund, covering a €50M mortgage portfolio, with an 80-20 loss sharing ratio and specific provisions for regulatory reporting requirements to be implemented by March 2025."

Document background
The Loss Share Agreement is a critical risk management instrument used in the Netherlands when parties seek to allocate and share potential financial losses arising from specific assets, portfolios, or transactions. This document type is particularly relevant in scenarios involving asset transfers, loan portfolio sales, or financial institution restructuring. The agreement details the mechanism for calculating losses, establishes triggers for loss-sharing obligations, and specifies payment procedures. Governed by Dutch law, particularly the Civil Code and Financial Supervision Act, the Loss Share Agreement must comply with both national and EU regulatory requirements. It typically includes comprehensive provisions for monitoring, reporting, and managing the shared risks, making it essential for complex financial transactions where risk allocation is a key consideration.
Suggested Sections

1. Parties: Identification of parties entering into the agreement

2. Background: Context of the agreement and relationship between parties

3. Definitions: Comprehensive definitions of terms used throughout the agreement

4. Scope of Agreement: Detailed description of the loss-sharing arrangement and covered assets/portfolios

5. Loss Calculation Methodology: Specific methods and formulas for calculating losses

6. Loss Share Mechanics: Procedures for implementing the loss-sharing, including timing and payment mechanisms

7. Representations and Warranties: Standard and specific representations by both parties

8. Reporting Requirements: Regular reporting obligations and information sharing requirements

9. Payment Terms: Terms and conditions for payments, including currency and payment methods

10. Events of Default: Circumstances constituting default and consequences

11. Term and Termination: Duration of agreement and termination provisions

12. Confidentiality: Provisions regarding confidential information handling

13. Governing Law and Jurisdiction: Specification of Dutch law application and jurisdiction

14. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignments

Optional Sections

1. Regulatory Compliance: Additional section when parties are regulated entities with specific compliance obligations

2. Third Party Rights: Section needed when third parties may have rights under the agreement

3. Step-in Rights: Required when allowing for transfer of rights/obligations to another party

4. Security Arrangements: Include when collateral or security is required to support obligations

5. Tax Provisions: Detailed tax arrangements when complex tax implications exist

6. Force Majeure: Specific provisions for handling unforeseen events affecting performance

7. Data Protection: Required when personal data processing is involved

Suggested Schedules

1. Schedule 1 - Covered Portfolio: Detailed description of assets/portfolios covered by the loss-sharing arrangement

2. Schedule 2 - Loss Calculation Examples: Practical examples of loss calculations under different scenarios

3. Schedule 3 - Reporting Templates: Standard forms and templates for required reporting

4. Schedule 4 - Service Levels: Specific performance metrics and service levels if applicable

5. Schedule 5 - Contact Details: Key contact information for both parties

6. Appendix A - Loss Share Calculation Methodology: Detailed technical specification of loss calculation methods

7. Appendix B - Form of Loss Share Certificate: Standard form for claiming losses under the agreement

8. Appendix C - Compliance Requirements: Detailed regulatory and compliance obligations

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions















































Clauses






























Relevant Industries

Financial Services

Banking

Insurance

Asset Management

Investment Services

Real Estate

Private Equity

Corporate Finance

Mortgage Lending

Debt Collection

Relevant Teams

Legal

Finance

Risk Management

Compliance

Treasury

Credit Risk

Portfolio Management

Structured Finance

Corporate Affairs

Operations

Relevant Roles

Chief Financial Officer

Chief Risk Officer

Head of Legal

Financial Director

Risk Manager

Legal Counsel

Compliance Officer

Portfolio Manager

Treasury Manager

Investment Director

Corporate Lawyer

Financial Controller

Senior Credit Manager

Structured Finance Manager

Transaction Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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