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Loan Extension Agreement Template for Denmark

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Key Requirements PROMPT example:

Loan Extension Agreement

I need a Loan Extension Agreement under Danish law for a secured corporate loan of 5 million DKK, extending the maturity date to March 15, 2025, with quarterly repayments and maintaining the existing collateral arrangements.

What is a Loan Extension Agreement?

The Loan Extension Agreement is a critical document used when parties to an existing loan agreement wish to extend its maturity date rather than refinancing or entering into a new loan agreement. This document type is particularly relevant in the Danish market where it must comply with local financial regulations and the Danish Contracts Act. It's commonly used during economic fluctuations when borrowers require additional time for repayment, or when both parties prefer to maintain their existing relationship rather than refinancing. The agreement typically includes confirmation of the outstanding amount, revised repayment schedules, any modified terms for the extension period, and reaffirmation of existing security arrangements. It's essential for both financial institutions and corporate borrowers in Denmark, providing a streamlined approach to extending credit facilities while maintaining legal certainty.

What sections should be included in a Loan Extension Agreement?

1. Parties: Identification of the lender and borrower, including their full legal names, registration numbers, and addresses

2. Background: Brief description of the original loan agreement, its date, and the reason for extension

3. Definitions: Key terms used in the agreement, including references to defined terms from the original loan agreement

4. Extension of Loan Term: Specific details of the extension period and new maturity date

5. Confirmation of Loan Amount: Statement of the current outstanding principal amount being extended

6. Interest Rate: Specification of interest rate applicable during the extension period

7. Repayment Terms: Schedule and method of repayment during the extension period

8. Reaffirmation of Original Agreement: Confirmation that all other terms of the original loan agreement remain in force

9. Representations and Warranties: Borrower's confirmation that original representations remain true and no defaults exist

10. Governing Law and Jurisdiction: Confirmation of Danish law governance and jurisdiction

11. Execution: Signature blocks and execution requirements

What sections are optional to include in a Loan Extension Agreement?

1. Security Confirmation: Confirmation of existing security arrangements, required if the original loan was secured

2. Additional Security: Details of any new security required as a condition of the extension

3. Guarantor Consent: Required if the original loan had guarantors who need to confirm their continued guarantee

4. Extension Fee: Include if there is a fee charged for the extension

5. Additional Conditions Precedent: Any new conditions that must be satisfied before the extension becomes effective

6. Tax Provisions: Special tax considerations or requirements, if applicable

7. Financial Covenants: Modified or additional financial covenants for the extension period, if required

What schedules should be included in a Loan Extension Agreement?

1. Schedule 1 - New Repayment Schedule: Detailed schedule of repayment dates and amounts under the extension

2. Schedule 2 - Conditions Precedent: List of documents and conditions required before the extension becomes effective

3. Schedule 3 - Form of Compliance Certificate: Template for ongoing compliance certification if required

4. Appendix A - Original Loan Agreement: Copy of the original loan agreement being extended

5. Appendix B - Security Documents: Copies of existing security documents if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 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

Banking

Financial Services

Real Estate

Manufacturing

Construction

Retail

Technology

Energy

Infrastructure

Healthcare

Agriculture

Transportation

Hospitality

Relevant Teams

Legal

Finance

Treasury

Credit

Risk Management

Compliance

Corporate Secretariat

Business Development

Loan Administration

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Loan Officer

Credit Manager

Relationship Manager

Risk Manager

Compliance Officer

Financial Controller

Banking Executive

Corporate Secretary

Business Development 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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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