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Finance Contract Template for Switzerland

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Key Requirements PROMPT example:

Finance Contract

"I need a Finance Contract governed by Swiss law for a secured term loan facility of CHF 10 million to be provided by Credit Swiss to our manufacturing company, with quarterly repayments over 5 years starting March 2025, including standard covenants and security over our equipment and inventory."

Document background
The Finance Contract is a fundamental document used in Swiss banking and financial transactions to establish legally binding financing arrangements between parties. It is particularly relevant when providing loans, credit facilities, or other financial accommodations under Swiss law. The document incorporates mandatory provisions required by Swiss banking regulations, financial services laws, and the Swiss Code of Obligations, while also addressing specific commercial terms agreed between the parties. It is commonly used by banks, financial institutions, and corporations for various financing purposes, from simple bilateral loans to complex syndicated facilities. The contract must comply with Swiss financial market supervision requirements, anti-money laundering regulations, and where applicable, consumer protection laws. Its structure allows for customization based on the specific financing needs while maintaining regulatory compliance.
Suggested Sections

1. Parties: Identification of the contracting parties with full legal names, addresses, and registration details

2. Background: Context of the financing arrangement and purpose of the facility

3. Definitions: Defined terms used throughout the agreement, including financial terms and calculation methodologies

4. Facility Amount and Purpose: Specification of the financing amount, type of facility, and permitted use of funds

5. Interest and Fees: Interest rate provisions, calculation methods, payment schedules, and applicable fees

6. Drawdown Conditions: Conditions precedent and procedural requirements for accessing the facility

7. Repayment Terms: Repayment schedule, prepayment provisions, and payment mechanics

8. Representations and Warranties: Standard and finance-specific representations by the borrower

9. Covenants: Financial and general covenants, including reporting requirements

10. Events of Default: Circumstances constituting default and consequential rights

11. Taxation: Tax-related provisions and withholding requirements under Swiss law

12. Changes to Parties: Assignment and transfer provisions

13. Notices: Communication requirements and contact details

14. Governing Law and Jurisdiction: Confirmation of Swiss law governance and jurisdiction specifications

Optional Sections

1. Security Arrangements: Required if the facility is secured, detailing the security package and enforcement rights

2. Guarantees: Required if third-party guarantees are part of the credit support structure

3. Syndication Provisions: Required for syndicated facilities, including agency and majority lender provisions

4. Market Disruption: Optional provisions for managing market disruption events affecting interest rates

5. Regulatory Compliance: Additional compliance requirements if dealing with regulated entities

6. Consumer Protection Provisions: Required if the borrower qualifies as a consumer under Swiss law

7. Data Protection: Detailed data protection provisions if personal data processing is extensive

8. Force Majeure: Optional provisions for unforeseeable circumstances affecting contract performance

Suggested Schedules

1. Conditions Precedent: Detailed list of required documents and conditions for initial drawdown

2. Form of Drawdown Request: Standard form for requesting disbursements under the facility

3. Calculation of Interest: Detailed methodology for interest calculations and examples

4. Repayment Schedule: Detailed amortization schedule if applicable

5. Form of Compliance Certificate: Template for periodic compliance reporting

6. Security Documents: Forms of security documents if applicable

7. Fee Schedule: Detailed breakdown of all applicable fees

8. Know Your Customer Requirements: List of required KYC documentation under Swiss regulations

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

Investment Management

Corporate Finance

Private Equity

Real Estate

Infrastructure

Manufacturing

Retail

Healthcare

Technology

Energy

Transportation

Agriculture

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Banking

Credit Administration

Investment Banking

Due Diligence

Operations

Corporate Secretariat

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Compliance Officer

Credit Risk Manager

Relationship Manager

Investment Manager

Banking Officer

Finance Manager

Contract Manager

Due Diligence Officer

Financial Controller

Corporate Secretary

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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