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The Limited Recourse Loan Agreement is a sophisticated financing instrument used when lenders agree to limit their recovery rights to specific assets or revenue streams rather than having full recourse to all of the borrower's assets. Under Dutch law, this agreement type is particularly valuable in project finance, where special purpose vehicles are established to isolate project risks. The document carefully delineates the scope of the limited recourse, specifies the assets or revenue streams available for debt service, and establishes the mechanisms for enforcement under Dutch law. It includes detailed provisions on loan terms, interest, repayment structures, events of default, and enforcement mechanisms, all tailored to comply with Dutch legal requirements while maintaining the limited recourse nature of the facility. This agreement type is especially relevant when financiers want to ring-fence their exposure to specific assets or when borrowers seek to protect their broader asset base from creditor claims.

1. Parties: Identification of the Lender and Borrower with full legal names and addresses

2. Background: Context of the loan arrangement and brief description of its limited recourse nature

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. The Facility: Loan amount, purpose, and conditions precedent to drawdown

5. Interest: Interest rate, calculation method, and payment dates

6. Repayment: Repayment schedule, prepayment provisions, and payment mechanics

7. Limited Recourse Provisions: Explicit limitations on lender's recourse and specification of available assets/revenue streams

8. Representations and Warranties: Standard and specific representations regarding the limited recourse nature

9. Covenants: Borrower's obligations including maintenance of specified assets/revenue streams

10. Events of Default: Circumstances constituting default and consequences, modified to reflect limited recourse

11. Payments: Payment mechanics, currency, and tax provisions

12. Changes to Parties: Assignment and transfer provisions

13. Notices: Communication procedures between parties

14. Calculations and Certificates: Basis for calculations and determinations

15. Partial Invalidity: Severability provisions

16. Remedies and Waivers: Rights and remedies of the parties

17. Amendments and Waivers: Procedures for modifying the agreement

18. Counterparts: Execution in multiple counterparts

19. Governing Law and Jurisdiction: Dutch law as governing law and jurisdiction provisions