The payoff (or value date ) bank is legally the most important contractual obligation of the bank and banking operations, the actual start of the credit risk , so until that time stipulated in the loan agreement credit conditions fulfilled must be. The disbursement can be a physical process if the credit is made available by cash payment or crediting of book money (for example in the case of a loan ) or an immaterial act by releasing a credit line (for example in the case of a current account loan). In addition, from the bank's point of view, the payment is the most important means of pressure that can move the borrower to meet the requirements. As a rule, the lender is only ready to pay the loan amount if certain elementary requirements are met on the part of the borrower.
Loans cannot be disbursed without the borrower or third party meeting the disbursement requirements. This dependency of the disbursement on the submission of the required documents and documents is usually achieved in legal terms by a condition precedent in the loan agreement ( BGB ), so that the bank is automatically obliged to pay out upon its fulfillment . Corresponding to the lender's payment obligation, the borrower has a claim to payment that can be assigned / pledged or attached independently ( BGB). This temporary claim is about in interim financing used, in which between financing banks can assign the claim for payment against the Endfinanzierer. Since the loan agreement to para. 1 BGB a consensual contract is defined by coincident declarations of borrowers and lenders comes about to be fulfilled by the borrower payment conditions are a contractual obligation is, the non-fulfillment of a right of withdrawal triggers the lender ( 1 para. BGB ). He must allow the borrower a period for subsequent performance to withdraw.(1)
Documents to be submitted
Among the conditions for payment, the completed part identity check and identity check (with companies through social contract and the commercial register in individuals through official identity card ), the legally signed loan agreement, legally ordered collateral ( security agreement ) and additional collateral documents . The latter include, for example, the entry of the mortgage at an agreed position in the land register or certificate of rank in the case of payment before proof of entry, purchase contracts , annual financial statements or proof of income .
Under GwG , credit institutions are obliged to collect information about the borrower and to verify his or her identity . According to (4) of the GwG, the identification process extends to name , place of birth , date of birth , nationality and home address . This information must show a valid government-issued ID, which is a photograph contains the holder and the passport and identity card required is met domestically, in particular on the basis of a domestic or foreigners law recognized or approved passport, identity card or passport or substitute identity document to be verified. In the case of legal entities or partnerships , an extract from the commercial or cooperative register or a comparable official register or directory must be requested.(1) of the
In its standard contracts, the Loan Market Association (LMA) differentiates between "conditions precedent", "representations and warranties" and "covenants":
- The "conditions precedent" are the payment requirements in the narrower sense. A distinction must be made between the “conditions precedent prior to first drawdown” (payment conditions before the first payment) and the “conditions precedent to each drawdown” (for each subsequent payment). The latter must be fulfilled repeatedly if there are several partial payments. The lender requires a legal opinion ("legal opinion") to confirm the legal existence of the borrower and his authorization to conclude loan agreements as well as the binding signature of the loan agreement. Their fulfillment by the borrower triggers the bank's payment obligation.
- “Representations and warranties” are a multitude of declarations and assurances of facts and compliance with all relevant laws , on the basis of which the bank declares its willingness to pay out. They are very broad because they require the borrower to comply with all imaginable laws. The "representations" are assurances about existing legal and economic facts ( status quo ), which must be fulfilled before a payout, "repeating representations" in turn are to be repeated for each further payout. "Warranties", however, affect behavior obligations during the credit period must be observed in future by the borrower. Your non-compliance ("misrepresentation") triggers a reason for termination by the bank.
- “ Covenants ” are contractual assurances by the borrower to meet certain conditions or to refrain from certain actions during the loan term.