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Loan Pledge Agreement
"I need a Swiss law Loan Pledge Agreement for a CHF 5 million corporate loan from ABC Bank AG to XYZ Trading GmbH, secured by a pledge over the borrower's securities portfolio held with Credit Suisse, with the loan to be drawn by March 2025."
1. Parties: Identification of the lender, borrower, and any security agent or trustee
2. Background: Context of the loan and pledge arrangement, including reference to any master agreements
3. Definitions: Definitions of key terms used throughout the agreement
4. Loan Terms: Principal amount, interest rate, repayment terms, and duration of the loan
5. Pledge: Description of pledged assets and creation of security interest
6. Perfection Requirements: Steps required to perfect the pledge under Swiss law
7. Representations and Warranties: Statements about ownership, authority, and condition of pledged assets
8. Rights and Obligations: Duties of parties regarding maintenance and use of pledged assets
9. Events of Default: Circumstances constituting default and consequences
10. Enforcement: Process and rights for enforcing the pledge upon default
11. Notices: Communication requirements and contact details
12. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction
13. Signature Block: Execution provisions and signature spaces
1. Security Agent Provisions: Required when a security agent is appointed to hold the pledge on behalf of multiple lenders
2. Insurance Requirements: Needed when pledged assets must be insured
3. Registration Requirements: Required for pledges that need registration in public registers
4. Bank Account Pledge Provisions: Specific provisions for pledges over bank accounts
5. Third Party Rights: Required when third parties have interests in the pledged assets
6. Tax Provisions: Specific tax considerations and allocations
7. Further Assurance: Additional actions parties may need to take to maintain pledge validity
1. Schedule 1 - Pledged Assets: Detailed description and inventory of all assets subject to the pledge
2. Schedule 2 - Loan Repayment Schedule: Detailed payment schedule including dates and amounts
3. Schedule 3 - Form of Notice: Template notices for perfection requirements
4. Schedule 4 - Security Agent Terms: Detailed terms of security agent appointment if applicable
5. Appendix A - Asset Valuation Report: Independent valuation of pledged assets if required
6. Appendix B - Registration Forms: Forms required for registering the pledge with relevant authorities
Authors
Banking
Financial Services
Asset Management
Real Estate
Manufacturing
Trading
Commodities
Private Equity
Investment Management
Commercial Lending
Wealth Management
Legal
Finance
Credit Risk
Compliance
Treasury
Corporate Banking
Collateral Management
Transaction Management
Security Operations
Loan Administration
Legal Counsel
Finance Director
Credit Officer
Relationship Manager
Compliance Officer
Risk Manager
Treasury Manager
Corporate Banking Officer
Security Trustee Officer
Asset Manager
Collateral Manager
Transaction Manager
Chief Financial Officer
Head of Legal
Senior Loan Officer
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