Security Agreement German

6.2 What are the tax or other incentives that are preferred to foreign lenders? What are the taxes applicable to foreign lenders for their loans, mortgages or other security documents for efficiency or registration purposes? The loan and a guarantee, which by its very nature are not incidental, can usually be transferred by simple transfer agreement. Unlike a guarantee, a guarantee (guarantee) is automatically transferred in the event of a transfer of the secured loan. Under German law, it is more common to create safeguards in a separate agreement for each type of security and, furthermore, parties may enter into different documents if third parties are involved. These rules apply not only to warranties, but also to other forms of security, including warranties. As a general rule, administrative authorizations are not required for security enforcement, with the exception of collection service providers who must be registered under the Legal Services Act, which is only possible if certain conditions are met. Security transfers are generally used to ensure security through inventory or personal property. A security transfer contract is usually executed in a simple written form. A practical challenge is the accurate and identifiable description of assets, particularly with respect to inventory. In this case, the agreement will often be either complete, relate to a given area in the premises and indicate that ownership of all assets held there is transferred, or explicitly list the individual inventory. Exceptions apply to the security interests of “accessories” (for more details, see the answer to question 5.2). 3.10 Do security reporting, notification or registration requirements on different types of assets involve a considerable delay or cost? 6.4 Will there be significant additional costs incurred by foreign lenders for the granting of such a loan/guarantee/security, such as notarized fees, etc.? 8.2 Are there preferential periods, clawbacks or other preferential rights of creditors (e.g. B, tax claims, workers` claims) in terms of security? AG: The capital hedging rules to be followed in the case of an AG are even stricter. In principle, payments and the granting of benefits by the company to its shareholders (with the exception of the distribution of dividends on the basis of a decision of the general meeting of shareholders) are prohibited.

Such payments and benefits are only allowed in a limited number of cases, for example. B in the case of an existing control and profit transfer contract or in the case where the company granting the guarantee is validly entitled to damages against its shareholders. In accordance with Article 3, paragraph 1, of Regulation (EC) No. 593/2008 relating to the legislation in force in Germany (Rome I), a contract is in accordance with the law chosen by the parties. A specific link with a foreign jurisdiction is generally not necessary for the choice of law to be valid. However, if the only connection with a foreign jurisdiction is the law chosen by the parties, mandatory provisions of the jurisdiction to which the case is bound apply, regardless of the law chosen.