In addition, modifications, life extensions or increases in tariffs and interest rates must be structured in such a way as to extend guarantees and guarantees to modified or increased commitments. Some doubts remain about the ability of guarantors and guarantors to guarantee unpredictable future debt. In order to reduce this risk, it is practical for the market to confirm or revise German security legislation and explicitly extend the guarantee to modified or reinforced covered bonds. The non-additional guarantee is confirmed by confirmation agreements. A new junior ranking guarantee (known as “additional commitments”) is granted for additional guarantees, such as pledges. This last point can entail significant notary fees related to the seizure of shares through a limited liability company. “The type of loan agreement with financial creditors differs from contracts with operational creditors for the supply of goods and services. Notwithstanding the above flexibilities, Q2 and Q3 2020, a wave of explicit COVID-19-related adjustments have been made to the Facility Agreements to help businesses stay out of a default caused by the pandemic. .

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