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Guaranty Fee Agreement Template for Switzerland

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Key Requirements PROMPT example:

Guaranty Fee Agreement

"I need a Swiss law Guaranty Fee Agreement where ABC Bank AG will receive a 2% annual fee for providing a CHF 10 million guarantee to XYZ Manufacturing GmbH, with quarterly payments starting from March 1, 2025."

Document background
The Guaranty Fee Agreement is essential in commercial and financial transactions where one party provides a guarantee in favor of another party and requires compensation for this service. This document type is commonly used in parent-subsidiary relationships, banking transactions, and commercial financing arrangements. The agreement must comply with Swiss law requirements, particularly the Swiss Code of Obligations (Articles 492-512) regarding guarantee contracts. The document typically outlines the calculation methodology for the guarantee fee, payment schedules, duration of the guarantee, and circumstances for fee adjustment or termination. It's particularly important in cross-border transactions where Swiss entities or Swiss law is involved, and when regulatory compliance with Swiss banking and financial regulations is required.
Suggested Sections

1. Parties: Identification of the guarantor and the beneficiary of the guarantee fee agreement

2. Background: Context of the agreement, including reference to the underlying guarantee and the reason for the fee arrangement

3. Definitions: Key terms used throughout the agreement, including 'Guarantee', 'Guarantee Fee', 'Payment Date', etc.

4. Guarantee Fee: Details of the fee amount, calculation method, and any adjustments

5. Payment Terms: Timing and method of fee payments, including payment instructions and late payment consequences

6. Duration: Term of the agreement and conditions for renewal or extension

7. Representations and Warranties: Standard assertions about the parties' capacity and authority to enter into the agreement

8. Termination: Circumstances under which the agreement can be terminated and the consequences

9. Notices: Communication requirements and contact details for formal notices

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

Optional Sections

1. Security: Include when additional security is required for the guarantee fee payments

2. Tax Provisions: Include when specific tax arrangements or VAT considerations need to be addressed

3. Currency Provisions: Include when fees are paid in multiple currencies or currency conversion is relevant

4. Regulatory Compliance: Include when parties are subject to specific regulatory requirements

5. Assignment and Transfer: Include when rights under the agreement may need to be transferred

6. Force Majeure: Include when specific events beyond parties' control need to be addressed

7. Confidentiality: Include when sensitive information needs protection

Suggested Schedules

1. Fee Calculation Schedule: Detailed methodology for calculating the guarantee fee

2. Payment Schedule: Timeline of payment dates and amounts

3. Form of Guarantee: Copy or terms of the underlying guarantee

4. Bank Account Details: Payment instructions and account information

5. Authorized Signatories: List of persons authorized to act under the agreement

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

Insurance

Corporate Finance

International Trade

Real Estate

Construction

Manufacturing

Energy

Infrastructure

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Secretariat

Business Development

Credit Risk

Commercial

Operations

Relevant Roles

Chief Financial Officer

Treasury Manager

Financial Controller

Legal Counsel

Corporate Lawyer

Risk Manager

Banking Relationship Manager

Finance Director

Compliance Officer

Credit Risk Officer

Corporate Secretary

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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