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Investment Loan Contract Template for Switzerland

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Key Requirements PROMPT example:

Investment Loan Contract

"I need an Investment Loan Contract under Swiss law for a CHF 5 million loan to finance a commercial real estate development project in Zurich, with quarterly interest payments and a 5-year term starting March 2025."

Document background
The Investment Loan Contract is a specialized financing document used when a lender provides funding specifically for investment purposes under Swiss law. It is particularly relevant for transactions where the loan proceeds will be used for specific investment activities such as property development, business expansion, or asset acquisition. The document combines elements of traditional loan agreements with investment-specific provisions, ensuring compliance with Swiss financial regulations, including the Swiss Code of Obligations and Financial Market Infrastructure Act. This contract type is essential when the loan facility requires specific investment criteria, monitoring mechanisms, and potentially complex security arrangements. The document typically includes detailed provisions for drawdown conditions, investment restrictions, monitoring requirements, and reporting obligations, making it suitable for both regulated financial institutions and private lenders operating under Swiss jurisdiction.
Suggested Sections

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

2. Background: Context of the investment loan, purpose, and any relevant preliminary discussions or arrangements

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

4. Loan Amount and Purpose: Specification of the loan amount, currency, and detailed description of the investment purpose

5. Drawdown: Conditions and procedures for accessing the loan funds

6. Interest: Interest rate, calculation method, payment frequency, and default interest provisions

7. Repayment Terms: Schedule of repayments, prepayment options, and final maturity date

8. Security: Description of collateral or other security arrangements securing the loan

9. Representations and Warranties: Standard declarations by the borrower about their legal status, capacity, and financial condition

10. Covenants: Ongoing obligations of the borrower, including financial covenants and reporting requirements

11. Events of Default: Circumstances that constitute default and consequences thereof

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

Optional Sections

1. Investment Monitoring: Used when the lender requires oversight of how the investment proceeds are used

2. Regulatory Compliance: Include when specific financial market regulations apply to the investment

3. Tax Provisions: Required when there are specific tax implications or withholding requirements

4. Assignment and Transfer: Include when the parties want to address the possibility of transferring loan rights or obligations

5. Multiple Lenders: Required when there is more than one lender, including syndication provisions

6. Currency Provisions: Include for loans involving multiple currencies or currency conversion requirements

7. Insurance Requirements: Used when specific insurance coverage is required for the investment

8. Step-In Rights: Include when lender may need to take control of the investment in certain circumstances

Suggested Schedules

1. Repayment Schedule: Detailed amortization table showing payment dates and amounts

2. Security Details: Detailed description of collateral and security arrangements

3. Conditions Precedent: List of documents and conditions required before loan drawdown

4. Form of Drawdown Notice: Template for borrower to request loan disbursement

5. Investment Plan: Detailed breakdown of how loan proceeds will be invested

6. Financial Covenants Calculations: Formulas and methods for calculating financial ratios and covenants

7. Permitted Investments: List of approved investment types or projects

8. Required Insurance: Details of insurance policies required to be maintained

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

Real Estate

Infrastructure

Private Equity

Manufacturing

Technology

Energy

Healthcare

Commercial Development

Agriculture

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit

Investment

Corporate Banking

Portfolio Management

Operations

Relevant Roles

Chief Financial Officer

Investment Manager

Legal Counsel

Finance Director

Treasury Manager

Investment Analyst

Compliance Officer

Risk Manager

Corporate Banker

Investment Director

Portfolio Manager

Credit Risk Officer

Financial Controller

Managing Director

Relationship 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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