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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