Document background
The Loan and Security Agreement is a fundamental document in Swiss secured lending transactions, combining the functions of a loan agreement and security agreement in a single instrument. It is typically used when a lender requires specific assets as collateral to secure a loan, whether for corporate financing, asset acquisition, or general business purposes. The document must comply with Swiss legal requirements, particularly those under the Swiss Code of Obligations (OR) for contractual obligations and the Swiss Civil Code (ZGB) for security interests. This agreement is especially relevant in situations where streamlined documentation is preferred, as it eliminates the need for separate loan and security agreements while maintaining comprehensive coverage of both aspects. The document includes detailed provisions for the loan facility, security creation, perfection requirements, enforcement mechanisms, and the parties' respective rights and obligations, all within the framework of Swiss law.
