If a German bank uses a third-party provider to promote a loan service, the institution should ensure that the outsourcing agreement meets the regulatory requirements under the German Banking Act.
However, Germany lacks form outsourcing agreements that can help the parties understand the types of cornerstone issues they should consider. To help address this deficiency, Mayer Brown, as one of the founding members of, and counsel for, Deutsche Kreditmarkt-Standards e.V., recently drafted a form outsourcing agreement.
Used in conjunction with our Servicing Agreement, Sale and Purchase Agreement, Term Sheet, Confidentiality Agreement and Date Sheet forms, this form should enable German banks and investors top prepare and process transactions in the loan market. We are glad to share this outsourcing agreement with you and will keep you posted on further developments.