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Commercial Pledge Agreement Template for Switzerland

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Key Requirements PROMPT example:

Commercial Pledge Agreement

"I need a Swiss law Commercial Pledge Agreement for pledging manufacturing equipment and receivables as security for a 5-year term loan, with the pledge to be registered by March 2025; the agreement should include private enforcement rights and insurance requirements."

Document background
The Commercial Pledge Agreement is a crucial security document used in Swiss commercial financing transactions where a party (pledgor) grants security over specific assets to secure obligations owed to another party (pledgee). This agreement is particularly relevant in corporate lending, asset finance, and other commercial transactions where security over assets is required. The document must comply with Swiss law requirements, particularly the Swiss Civil Code provisions regarding pledge creation and perfection. The Commercial Pledge Agreement typically includes detailed descriptions of pledged assets, perfection requirements, enforcement mechanisms, and various representations and warranties. It is commonly used alongside other financing documents and may require registration with relevant Swiss authorities depending on the nature of the pledged assets.
Suggested Sections

1. Parties: Identification of pledgor and pledgee with full legal names, addresses, and registration details

2. Background: Context of the pledge agreement, including reference to any underlying obligations or master agreements

3. Definitions: Definitions of key terms used throughout the agreement

4. Creation of Pledge: Express declaration of pledge creation and confirmation of pledgor's ownership rights

5. Scope of Pledge: Detailed description of pledged assets and secured obligations

6. Perfection Requirements: Steps required to perfect the pledge under Swiss law, including registration requirements

7. Representations and Warranties: Pledgor's confirmations regarding ownership, authority, and absence of encumbrances

8. Rights and Obligations of the Parties: Ongoing obligations regarding maintenance, insurance, and use of pledged assets

9. Enforcement: Enforcement procedures compliant with Swiss law, including private realization if agreed

10. Notices: Communication requirements and contact details

11. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction

Optional Sections

1. Third Party Rights: Required when pledged assets are subject to existing third-party rights or claims

2. Bank Account Provisions: Specific provisions for pledged bank accounts, including control arrangements

3. Insurance Requirements: Detailed insurance obligations when pledged assets require specific insurance coverage

4. Tax Provisions: Specific tax-related provisions when pledge creation or enforcement has tax implications

5. Multiple Pledgors: Additional provisions when multiple parties are granting pledges

6. Security Agent Provisions: Required when pledge is held by a security agent on behalf of multiple secured parties

7. Subordination Provisions: Required when there are multiple security interests requiring ranking

Suggested Schedules

1. Schedule 1 - Pledged Assets: Detailed description and/or inventory of all pledged assets

2. Schedule 2 - Secured Obligations: Description of obligations secured by the pledge

3. Schedule 3 - Form of Notice: Template notices required for perfection (e.g., to account banks, custodians)

4. Schedule 4 - Perfection Requirements: Checklist of actions required for valid pledge creation

5. Appendix A - Corporate Authorizations: Copies of relevant corporate approvals for pledge creation

6. Appendix B - Asset Documents: Copies of relevant title documents, certificates, or registrations

7. Appendix C - Registration Forms: Forms required for any registrations (e.g., commercial register forms)

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 & Financial Services

Corporate Lending

Asset Finance

Commercial Real Estate

Manufacturing

Trade Finance

Infrastructure

Energy

Technology

Telecommunications

Transportation & Logistics

Professional Services

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Secretariat

Credit Administration

Commercial Operations

Business Development

Transaction Management

Relevant Roles

Legal Counsel

Finance Director

Chief Financial Officer

Treasury Manager

Credit Risk Manager

Commercial Director

Security Trustee

Loan Officer

Compliance Officer

Corporate Secretary

Transaction Manager

Asset Manager

Relationship 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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