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Loan Market Agreement Template for Switzerland

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Key Requirements PROMPT example:

Loan Market Agreement

"I need a bilateral Swiss law Loan Market Agreement for a CHF 50 million secured term loan facility to be provided by UBS to a Swiss manufacturing company, with quarterly repayments over 5 years starting March 2025."

Document background
The Loan Market Agreement under Swiss law serves as the primary documentation for commercial lending transactions in Switzerland, whether bilateral or syndicated. This agreement is essential when establishing credit facilities between Swiss or international financial institutions and corporate borrowers, particularly when the lending arrangement is governed by Swiss law. The document incorporates mandatory provisions required by Swiss banking regulations and the Swiss Code of Obligations, while following international lending market practices. It is commonly used for various financing purposes including corporate lending, acquisition financing, project finance, and asset-based lending. The agreement's structure allows for customization based on specific transaction requirements, including provisions for multiple currencies, various security arrangements, and different types of credit facilities.
Suggested Sections

1. Parties: Identification of the lender(s), borrower(s), and any other parties to the agreement

2. Background: Context of the loan agreement and primary purpose of the facility

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and interpretation rules

4. The Facility: Core terms of the loan including amount, purpose, and availability period

5. Conditions Precedent: Documents and conditions required before drawdown

6. Drawdown: Procedures and requirements for utilizing the loan facility

7. Interest: Interest calculation, periods, rates, and payment provisions

8. Repayment: Terms and schedule for repayment of the loan

9. Prepayment and Cancellation: Provisions for early repayment and facility cancellation

10. Tax Gross Up and Indemnities: Tax-related provisions and associated indemnities

11. Increased Costs: Provisions dealing with changes in costs due to regulatory or legal changes

12. Representations: Borrower's representations and warranties

13. Information Undertakings: Borrower's obligations to provide financial and other information

14. General Undertakings: Borrower's general operational and financial covenants

15. Events of Default: Circumstances constituting default and consequences

16. Changes to Parties: Provisions for transfers, assignments, and substitutions

17. Payment Mechanics: Administrative provisions for making payments

18. Set-off: Rights of set-off and counterclaim

19. Notices: Communication procedures between parties

20. Calculations and Certificates: Provisions regarding calculations and evidential value of certificates

21. Partial Invalidity: Severability provisions

22. Remedies and Waivers: Rights, remedies, and waiver provisions

23. Amendments and Waivers: Procedures for modifying the agreement

24. Governing Law and Enforcement: Choice of Swiss law and jurisdiction provisions

Optional Sections

1. Agent and Security Agent Provisions: Required for syndicated loans to establish roles and responsibilities of facility and security agents

2. Security: Required for secured loans, detailing security package and enforcement rights

3. Guarantee: Required when guarantors are involved, detailing guarantee terms

4. Majority Lenders: Required for syndicated loans, defining voting rights and decision-making processes

5. Currency Provisions: Required for multi-currency facilities

6. Market Disruption: Optional provisions dealing with market disruption events

7. Anti-Corruption Laws: Enhanced compliance provisions for certain jurisdictions or borrower types

8. Bail-in Provisions: Required when involving EU regulated institutions

Suggested Schedules

1. Schedule 1 - Conditions Precedent: Detailed list of required conditions precedent documents

2. Schedule 2 - Drawdown Request Form: Form for requesting loan disbursements

3. Schedule 3 - Form of Transfer Certificate: Template for transferring loan participations

4. Schedule 4 - Form of Compliance Certificate: Template for periodic compliance certification

5. Schedule 5 - Repayment Schedule: Detailed amortization schedule if applicable

6. Schedule 6 - Interest Calculation Examples: Examples illustrating interest calculations

7. Schedule 7 - Form of Accession Deed: Template for new parties joining the agreement

8. Schedule 8 - Form of Assignment Agreement: Template for assigning rights under the agreement

9. Schedule 9 - Form of Security Documents: Templates for security documentation if applicable

10. Appendix 1 - Lender Commitments: List of lenders and their commitments in syndicated loans

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

Insurance

Real Estate

Manufacturing

Technology

Healthcare

Energy

Infrastructure

Telecommunications

Retail

Transportation

Construction

Agriculture

Mining

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Banking

Syndications

Documentation

Risk Management

Transaction Management

Corporate Finance

Operations

Portfolio Management

Relationship Management

Credit Administration

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Legal Counsel

Corporate Lawyer

Banking Lawyer

Compliance Officer

Credit Manager

Relationship Manager

Risk Manager

Transaction Manager

Finance Manager

Corporate Secretary

Bank Director

Loan Officer

Documentation Specialist

Senior Credit Analyst

Portfolio Manager

Syndications Manager

Restructuring Officer

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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