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Framework Loan Agreement
"I need a Framework Loan Agreement under Swiss law for a CHF 20 million facility between our bank and a manufacturing company, with quarterly drawdown options and specific covenants related to maintaining certain financial ratios."
1. Parties: Identification of the lender and borrower with full legal names and addresses
2. Background: Context of the framework agreement and the general relationship between the parties
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. Framework Structure: Overview of how individual loans will be granted under the framework
5. Facility Amount and Purpose: Maximum amount available under the framework and permitted purposes for the loans
6. Drawdown Mechanics: Procedures and conditions for requesting and receiving individual loans
7. Interest and Fees: Interest calculation method, rates, and any applicable fees
8. Repayment Terms: General terms for repayment of loans drawn under the framework
9. Representations and Warranties: Statements of fact and assurances given by the borrower
10. Conditions Precedent: Conditions that must be satisfied before any loan can be drawn
11. Covenants: Ongoing obligations of the borrower during the life of the agreement
12. Events of Default: Circumstances that constitute default and their consequences
13. Security: Overview of any security arrangements for loans under the framework
14. Governing Law and Jurisdiction: Confirmation of Swiss law governance and jurisdiction for disputes
15. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability
1. Syndication Provisions: Required when multiple lenders are or may be involved in the lending structure
2. Tax Provisions: Detailed tax clauses needed when cross-border elements exist or specific tax arrangements apply
3. Currency Provisions: Required when loans may be drawn in multiple currencies
4. Increased Costs and Market Disruption: Needed for longer-term facilities or when market sensitivity is a concern
5. Assignment and Transfer: Detailed provisions needed when transfer of loans or rights is contemplated
6. Consumer Protection Clauses: Required when the borrower might qualify as a consumer under Swiss law
7. Regulatory Compliance: Special provisions needed for regulated borrowers or specific industry requirements
1. Form of Drawdown Request: Standard form for requesting loans under the framework
2. Form of Compliance Certificate: Template for periodic confirmation of compliance with agreement terms
3. Conditions Precedent Documents: List of required documents and conditions for initial and subsequent drawdowns
4. Calculation of Interest and Fees: Detailed methodology for calculating interest and other amounts
5. Security Details: Specific details of security arrangements and collateral
6. Permitted Security Interests: List of security interests allowed under the agreement
7. Form of Transfer Certificate: Standard form for transferring interests in the facility
8. Existing Financial Indebtedness: Schedule of borrower's existing debt obligations
Authors
Banking and Financial Services
Corporate Finance
Real Estate and Construction
Manufacturing and Industrial
Technology and Software
Healthcare and Life Sciences
Energy and Infrastructure
Retail and Consumer Goods
Transportation and Logistics
Professional Services
Legal
Finance
Treasury
Credit Risk
Compliance
Corporate Banking
Loan Administration
Credit Analysis
Corporate Finance
Financial Control
Chief Financial Officer
Finance Director
Treasury Manager
Corporate Lawyer
Legal Counsel
Banking Relationship Manager
Credit Risk Manager
Compliance Officer
Financial Controller
Corporate Banking Officer
Loan Officer
Credit Analyst
Legal Director
Finance Manager
Treasury Director
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