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Guarantee Facility Agreement Template for Switzerland

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Key Requirements PROMPT example:

Guarantee Facility Agreement

"I need a Swiss law Guarantee Facility Agreement for a CHF 50 million facility between Credit Suisse as guarantee provider and TechCorp AG as principal debtor, to be used for issuing performance bonds and advance payment guarantees in connection with technology infrastructure projects, with the facility to commence on March 1, 2025."

Document background
The Guarantee Facility Agreement is a crucial financial instrument in Swiss banking and commercial practice, typically used when companies need ongoing guarantee support for their business operations. This agreement provides a framework under which a financial institution can issue multiple guarantees up to an agreed facility limit, without negotiating terms for each individual guarantee. The document is governed by Swiss law, particularly the Swiss Code of Obligations (Articles 492-512), and is commonly used in international trade, construction projects, and corporate financing. The agreement details all aspects of the guarantee facility, including issuance procedures, fees, reporting requirements, and enforcement mechanisms. It's particularly important in scenarios where companies regularly need performance bonds, advance payment guarantees, or tender guarantees for their business activities.
Suggested Sections

1. Parties: Identification of the parties: Guarantor, Beneficiary (typically a bank/financial institution), and Principal Debtor

2. Background: Context of the guarantee facility, including the underlying relationship and purpose

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. The Facility: Details of the guarantee facility including amount, purpose, and availability period

5. Issue of Guarantees: Process and conditions for issuing individual guarantees under the facility

6. Guarantee Obligations: Core provisions defining the scope and nature of the guarantee obligations

7. Payments and Calculations: Payment mechanics, currency provisions, and calculation methods

8. Representations and Warranties: Standard representations and warranties from the guarantor

9. Undertakings: Ongoing obligations of the guarantor during the facility period

10. Events of Default: Circumstances constituting default and their consequences

11. Changes to Parties: Rules regarding assignment, transfer, and succession

12. Notices: Communication procedures between parties

13. Miscellaneous: Standard boilerplate provisions including severability, amendments, etc.

14. Governing Law and Jurisdiction: Choice of Swiss law and jurisdiction provisions

Optional Sections

1. Security: Required when the guarantee facility is secured by additional collateral

2. Counter-Indemnity: Used when the guarantor requires indemnification from the principal debtor

3. Guarantee Commission: Included when the guarantor charges fees for providing the guarantee

4. Tax Gross-Up and Indemnities: Required for cross-border transactions or when tax implications need specific attention

5. Multiple Guarantors: Required when there is more than one guarantor, addressing joint and several liability

6. Currency Provisions: Detailed provisions needed for multi-currency facilities

7. Bank Account Provisions: Required when specific account arrangements need to be documented

8. Financial Covenants: Included when financial metrics need to be maintained by the guarantor

Suggested Schedules

1. Form of Guarantee Request: Standard form for requesting the issuance of a guarantee under the facility

2. Form of Guarantee: Template guarantee document to be issued under the facility

3. Conditions Precedent: List of documents and conditions required before facility effectiveness

4. Fee Schedule: Detailed breakdown of all applicable fees and charges

5. Notice Details: Contact information and address details for all parties

6. Form of Transfer Certificate: Template for transferring rights under the facility

7. Existing Guarantees: List of any existing guarantees to be brought under the facility

8. Form of Compliance Certificate: Template for periodic compliance reporting if required

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

Corporate Banking

Investment Banking

Manufacturing

International Trade

Construction and Infrastructure

Energy and Utilities

Real Estate

Retail and Consumer Goods

Technology and Telecommunications

Transport and Logistics

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Banking

Trade Finance

Credit

Operations

Commercial Banking

Transaction Banking

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Legal Counsel

Corporate Lawyer

Relationship Manager

Credit Risk Manager

Compliance Officer

Transaction Banking Manager

Trade Finance Manager

Contract Manager

Business Development Director

Corporate Banking Officer

Risk Management Officer

Financial Controller

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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