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The Incidental Credit Agreement is designed for situations where credit is provided as an ancillary service to a primary transaction under Swiss law. This document type is commonly used in retail financing, equipment purchases, or service contracts where deferred payment or financing is offered as part of the main transaction. The agreement must comply with Swiss regulatory requirements, particularly the Consumer Credit Act (KKG) and the Code of Obligations (OR), ensuring proper consumer protection and transparency in financial dealings. It includes essential elements such as credit terms, interest calculations, repayment schedules, and default provisions, while maintaining compliance with Swiss banking regulations and data protection requirements. This type of agreement is particularly relevant when businesses offer financing options to customers or when financial institutions provide credit through merchant partnerships.

1. Parties: Identification of the credit provider and the borrower with full legal names and addresses

2. Background: Context of the credit arrangement, including the purpose of the incidental credit and its relationship to other transactions

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

4. Credit Amount and Purpose: Specification of the credit amount, currency, and permitted use of funds

5. Interest and Fees: Details of interest rate, calculation method, and any applicable fees

6. Repayment Terms: Payment schedule, method of payment, and consequences of late payment

7. Conditions Precedent: Conditions that must be satisfied before the credit becomes available

8. Representations and Warranties: Statements of fact and assurances given by the borrower

9. Borrower Covenants: Ongoing obligations of the borrower during the term of the agreement

10. Events of Default: Circumstances that constitute default and their consequences

11. Termination: Conditions and process for ending the agreement

12. Notices: How formal communications between parties should be made

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

14. Execution: Signature blocks and execution requirements