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Loan Collateral Agreement Template for Switzerland

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Key Requirements PROMPT example:

Loan Collateral Agreement

"I need a Swiss law Loan Collateral Agreement for a manufacturing equipment loan worth 2 million CHF, where our company will pledge its machinery and receivables as security to Bank Geneva SA, with the agreement to be effective from March 1, 2025."

Document background
The Loan Collateral Agreement is a crucial document in secured lending transactions under Swiss law, used when a lender requires security over specific assets to secure a loan or other financial obligations. This agreement is essential in both commercial and private lending contexts, providing the lender with enforceable rights over the pledged assets in case of default. The document must comply with Swiss legal requirements, particularly the Swiss Civil Code (ZGB) and Code of Obligations (OR), and includes detailed provisions about the collateral's nature, perfection requirements, maintenance obligations, and enforcement procedures. It's commonly used in various financing scenarios, from simple bilateral loans to complex syndicated facilities, and can cover multiple types of collateral including movable assets, real estate, receivables, and securities.
Suggested Sections

1. Parties: Identification of the lender, borrower, and any security providers

2. Background: Context of the loan agreement and purpose of the security arrangement

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

4. Secured Obligations: Detailed description of the obligations being secured, including the underlying loan details

5. Grant of Security: The formal creation and granting of the security interest

6. Description of Collateral: Precise identification and description of the assets serving as collateral

7. Perfection Requirements: Steps required to perfect the security interest under Swiss law

8. Representations and Warranties: Statements regarding ownership, authority, and status of the collateral

9. Covenants: Ongoing obligations regarding maintenance and preservation of the collateral

10. Enforcement: Rights and procedures for enforcing the security interest upon default

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

12. Notices: Communication procedures between parties

13. Miscellaneous: Standard boilerplate provisions including severability, amendments, and counterparts

Optional Sections

1. Insurance Requirements: Required when collateral needs specific insurance coverage

2. Third Party Rights: Needed when there are existing claims or rights affecting the collateral

3. Currency Provisions: Required for cross-border transactions or when the loan and collateral are in different currencies

4. Tax Provisions: Included when there are specific tax implications for the security arrangement

5. Regulatory Compliance: Required when the transaction falls under specific regulatory frameworks

6. Bank Account Pledges: Included when bank accounts form part of the collateral

7. Intellectual Property Rights: Required when IP assets are part of the collateral

8. Real Estate Provisions: Needed when real property is part of the collateral

Suggested Schedules

1. Schedule 1 - Collateral Description: Detailed technical description of all collateral assets

2. Schedule 2 - Form of Notice: Template notices for perfection requirements

3. Schedule 3 - Secured Obligations Details: Detailed description of the underlying loan agreement and other secured obligations

4. Schedule 4 - Filing and Registration Requirements: List of required filings and registrations for different types of collateral

5. Appendix A - Property Documents: Copies of relevant property titles or certificates

6. Appendix B - Corporate Authorizations: Copies of corporate approvals and authorizations

7. Appendix C - Existing Security Interests: List of any pre-existing security interests or encumbrances

8. Appendix D - Insurance Certificates: Copies of required insurance policies and certificates

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

Real Estate

Manufacturing

Technology

Healthcare

Retail

Infrastructure

Energy

Agriculture

Transportation

Construction

Relevant Teams

Legal

Finance

Risk Management

Compliance

Treasury

Credit Administration

Corporate Banking

Operations

Security Administration

Documentation

Relevant Roles

Legal Counsel

Finance Director

Credit Risk Manager

Loan Officer

Compliance Officer

Corporate Banker

Security Trustee

Treasury Manager

Chief Financial Officer

Risk Management Officer

Corporate Secretary

Banking Operations Manager

Collateral Manager

Asset 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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