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Authorised Guarantee Agreement Template for Switzerland

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Key Requirements PROMPT example:

Authorised Guarantee Agreement

"I need an Authorized Guarantee Agreement under Swiss law where ABC Corporation AG will guarantee a CHF 2 million bank loan from Credit Swiss to XYZ GmbH, with the guarantee period starting from March 1, 2025."

Document background
The Authorized Guarantee Agreement is a crucial financial security instrument under Swiss law, commonly used in commercial transactions to provide additional security for financial obligations. This document type is specifically regulated under the Swiss Code of Obligations and requires careful drafting to ensure compliance with mandatory provisions, including form requirements and content specifications. The agreement is typically used when a creditor requires additional security beyond the principal debtor's commitment, such as in loan agreements, lease arrangements, or supply contracts. The document must clearly state the maximum amount of liability, identify the secured obligations, and include all necessary formalities for validity under Swiss law. When the guarantor is a natural person, additional protective measures apply, including mandatory spousal consent in certain cases. The Authorized Guarantee Agreement must be in writing and contain specific mandatory information to be enforceable under Swiss law.
Suggested Sections

1. Parties: Identification of the Guarantor, the Beneficiary (creditor), and reference to the Principal Debtor

2. Background: Context of the guarantee, reference to the principal agreement being guaranteed, and the reason for providing the guarantee

3. Definitions: Definitions of key terms used in the agreement, including 'Guaranteed Obligations', 'Principal Agreement', and 'Guarantee Period'

4. Guarantee: Core guarantee provisions, including the maximum amount of liability and specific obligations being guaranteed

5. Nature of Guarantee: Specification that this is an authorized guarantee and its characteristics (e.g., independent, continuing, irrevocable)

6. Guarantor's Undertakings: Specific commitments and warranties made by the guarantor

7. Enforcement and Payment Terms: Conditions for calling on the guarantee and payment requirements

8. Duration: Term of the guarantee and any conditions for termination

9. Notices: Process and requirements for serving notices under the agreement

10. Governing Law and Jurisdiction: Confirmation of Swiss law governance and jurisdiction for disputes

11. Execution: Formal execution requirements including date and signatures

Optional Sections

1. Spousal Consent: Required when the guarantor is a natural person and married, per Swiss law requirements

2. Multiple Guarantors: Additional provisions needed when there are multiple guarantors, addressing joint and several liability

3. Corporate Authority: Required for corporate guarantors, including confirmation of corporate power and authority

4. Assignment and Transfer: Provisions regarding the ability to assign or transfer rights under the guarantee

5. Currency Provisions: Required when the guarantee involves obligations in multiple currencies

6. Costs and Expenses: Allocation of costs related to the preparation and enforcement of the guarantee

7. Tax Gross-up: Provisions for tax treatment of payments under the guarantee, if applicable

Suggested Schedules

1. Form of Demand: Template for making a demand under the guarantee

2. Principal Agreement: Copy or summary of the agreement being guaranteed

3. Corporate Authorizations: Copies of relevant corporate approvals (for corporate guarantors)

4. Spousal Consent Form: Template for spousal consent when required

5. Guarantee Amount Calculation: Details of how the maximum guarantee amount is calculated or determined

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
























Clauses


























Relevant Industries

Banking and Financial Services

Real Estate

Construction

Manufacturing

Import/Export

Commercial Leasing

Retail

Wholesale Trade

Professional Services

Infrastructure

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Commercial

Credit Control

Corporate Secretariat

Business Development

Relevant Roles

Legal Counsel

Corporate Lawyer

Finance Director

Credit Manager

Risk Manager

Commercial Director

Contract Manager

Company Secretary

Chief Financial Officer

Treasury Manager

Compliance Officer

Business Development Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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