17 July 2020

New Professional Payment Guarantee

The law on professional payment guarantees dated 10 July 2020 (the “Professional Guarantee Law”) entered into force on 17 July 2020:

  • The Professional Guarantee Law introduced a new type of flexible guarantee of payment (the “Professional Guarantee”).
  • The new regime has two key principles: (i) contractual freedom and (ii) legal certainty.
  • Parties may freely negotiate the terms of the Professional Guarantee.
  • Parties have to expressly opt for the new regime.
  • The Professional Guarantee is particularly useful for syndicated loans, synthetic securitisations, international capital markets transactions and credit enhancement schemes.

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Press contact
Beate Dünschede
+352 271802-29
beate.duenschede@gsk-lux.com

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Andreas Heinzmann, LL.M.

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+352 271802-30

andreas.heinzmann@gsk-lux.com

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Local Partner

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