6.3 Does the income of a foreign lender in your jurisdiction become taxable solely on the basis of a loan to a business under your jurisdiction or a guarantee and/or guarantee in your jurisdiction? Secondary buyers can get the benefit of the guarantee granted to early lenders in different ways, but usually in the syndicated loan market as follows. The COVID-19 Pandemics Act offers an additional facility: acts that have granted the guarantee or satisfaction (which the other party has been allowed to claim on that date) cannot be challenged in subsequent insolvency proceedings if they occur at a time when the bankruptcy obligation has been temporarily suspended due to an emergency financial situation related to COVID 19 (until 30 September 2020). This does not apply where the creditor knows that the debtors` collection and refinancing efforts have not been such as to restore solvency. Under German law, it is possible to assign receivables before they are created (future receivables) through a corresponding purchase and assignment contract between the seller and the buyer. Particular care should be taken to ensure that an assignment of future receivables complies with the German principle of certainty. According to case law, this presupposes, for future claims, that it is sufficiently identifiable at the time of the appearance of a (identifiable) claim, i.e. it is possible to determine whether or not that claim is covered by the assignment on that date (determinability). If a claim arises after the commencement of insolvency proceedings against the seller, the seller no longer has the right to dispose of its assets, even by way of transfer of claims. In practice, it may be difficult to determine whether a claim is indeed a future claim (e.g.
B a claim for future rents) to which the above rules apply, or rather an existing claim that is not yet due (e.g. B a right to repayment of a loan agreement). With regard to the Foreign Account Tax Compliance Act (FATCA), financial institutions in Germany are not required to enter into a FATCA agreement with the tax office, but have certain reporting obligations vis-à-vis the German tax authorities and regular borrowers should generally not be concerned. Nevertheless, it has become a market practice to include the LMA language for FATCA withholding in LMA standardized credit agreements, with the use of Rider 3 (FATCA being a lender`s risk) being generally used. Most of the basic fees in Germany are now unregulated. Separate security agreements are generally used to ensure the security of certain types of assets. However, in some cases, it may be desirable to incorporate different types of guarantees into a single agreement. . . .