The trading of credit portfolios—such as non-performing and non-strategic loan portfolios—on the secondary market in Germany essentially began in 2003. Since then, credit institutions have begun selling these loan portfolios in large volumes. However, unlike the United States, where credit portfolio trading is standardized, Germany has only developed its first standard for such transactions in the past few years.

Together with the Bundesvereinigung Kreditankauf und Servicing e.V. (“Federal Association for Loan Purchase and Servicing”), Mayer Brown has developed a model sale and purchase agreement for loan portfolio (especially non-performing loans), which is now widely being used by market participants. German and English versions of the agreement are attached to this Legal Update.

For more information about this agreement, please contact at +49 69 79 41 2951 or at +49 69 7941 2751.