Banking Law in Hannover. From the credit line to the security.

A loan agreement often binds a company for years and carries far-reaching duties. What tends to be underestimated are the clauses on interest adjustment, the granting of security and further security on demand. We analyse the documents before signature.

• Review of commercial loan agreements for unreasonable clauses, excessive interest and hidden charges
• Drafting and negotiation of security such as land charges, chattel mortgages, guarantees and hard letters of comfort
• Advice on avoiding liability for managing directors and shareholders under personal guarantees
• Negotiation of financial covenants, distribution restrictions and information duties
• On property projects we align construction progress and drawdown with our practice area Construction Law

Funding an acquisition or a large infrastructure project follows the cash flow the target generates. That determines the covenants set out in the loan agreement and the extent of the security package.

• Acquisition loans including leveraged buy-out structures, mezzanine capital and vendor loans
• Creation of security, in particular share pledges, global assignments and land charges, including the limits arising from the prohibition on the repayment of capital
• Project finance from structuring through to financial close, for example in fibre network roll-out
• Asset finance for specialist machinery and vehicle fleets, coordinated with Transport Law
• How the finance is secured within the share purchase agreement is covered by our practice area Corporate Law

In difficult periods liquidity management decides whether a business survives. We lead the discussions with banks, suppliers and credit insurers in order to stabilise the funding lines.

• Chairing and conducting negotiations between the company, its shareholders and its finance partners
• Applications for state guarantees and public funding to bridge shortfalls
• Structuring of restructuring loans and bridge facilities to avert imminent illiquidity
• Standstill agreements and additional security where the bank is considering termination
• Putting restructuring concepts, for example under the StaRUG, on a sound banking law footing together with Insolvency Law

Anyone who raises capital or recommends investments is liable for what was said and for what was left out. The standard is strict: advice must suit both the product and the person, and the prospectus must give a true picture of the material risks. We act for both sides.

• Review of advisory and intermediary processes against the suitability standard
• Disclosure of inducements and internal commissions, and the consequences of concealing them
• Liability for incorrect or incomplete prospectuses and information sheets
• Pursuing and defending claims, including questions of limitation
• Support for issuers in preparing and reviewing the documents

The Federal Court of Justice has struck down several clauses under which banks raised charges unilaterally or adjusted interest. What was paid on that basis can be reclaimed. For companies this adds up over the years to substantial sums.

• Review of account statements and price lists for charges levied without a valid basis
• Recovery of account maintenance, processing and custody charges
• Review of interest adjustment clauses in long-term loans and savings agreements
• Calculation of the claims and observance of the limitation periods
• Pursuing the claims out of court and, where necessary, by action