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Margin Lending Agreement
"I need a Margin Lending Agreement under Swiss law for our bank to provide a CHF 5 million facility to an institutional client, with standard margin requirements and specific provisions for cryptocurrency collateral."
1. Parties: Identification of the lender and borrower with full legal names and addresses
2. Background: Context of the agreement and general purpose of the margin lending facility
3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation
4. Facility and Purpose: Details of the margin lending facility, including amount, purpose, and any sub-facilities
5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available
6. Margin Requirements: Calculation of margin requirements, maintenance margin levels, and margin calls
7. Collateral Arrangements: Types of eligible collateral, valuation methods, and custody arrangements
8. Interest and Fees: Interest calculation, payment terms, and applicable fees
9. Representations and Warranties: Standard and specific representations and warranties from the borrower
10. Covenants: Positive and negative obligations of the borrower during the facility period
11. Events of Default: Circumstances constituting default and consequences thereof
12. Enforcement Rights: Lender's rights and remedies upon default, including collateral liquidation
13. Payment Mechanics: Details of payment procedures, currencies, and settlement arrangements
14. Changes to Parties: Rules regarding assignment, transfer, and delegation of rights and obligations
15. Notices: Communication methods and contact details for formal notices
16. Governing Law and Jurisdiction: Confirmation of Swiss law governance and jurisdiction arrangements
1. Multi-currency Provisions: Required if the facility allows for multiple currencies, including exchange rate mechanisms and currency-specific margins
2. Electronic Trading Platform: Include if margin lending is linked to a specific trading platform, detailing access and operational procedures
3. Additional Security Arrangements: Required if additional forms of security beyond standard collateral are provided
4. Client Classification: Include for retail clients, addressing FinSA requirements and consumer protection measures
5. Additional Services: Include if additional services such as advisory or portfolio management are provided alongside margin lending
6. Tax Provisions: Detailed tax clauses required for cross-border arrangements or specific tax situations
7. Force Majeure: Extended force majeure provisions for agreements with specific market sensitivity
1. Schedule 1 - Facility Terms: Detailed commercial terms including facility limits, interest rates, and fees
2. Schedule 2 - Eligible Collateral: List of acceptable collateral types and their respective margin requirements
3. Schedule 3 - Margin Calculations: Detailed methodology for calculating margin requirements and trigger levels
4. Schedule 4 - Form of Margin Call Notice: Standard template for margin call notifications
5. Schedule 5 - Account Details: Banking and custody account details for both parties
6. Appendix A - Risk Disclosure: Required risk disclosures under FinSA
7. Appendix B - Fee Schedule: Detailed breakdown of all applicable fees and charges
8. Appendix C - Compliance Documents: Required regulatory forms and compliance declarations
Authors
Banking
Financial Services
Investment Management
Wealth Management
Securities Trading
Private Banking
Asset Management
Brokerage Services
Investment Banking
Retail Banking
Legal
Compliance
Risk Management
Credit
Trading
Operations
Client Services
Wealth Management
Portfolio Management
Treasury
Financial Advisory
Collateral Management
Documentation
Investment Advisory
Relationship Management
Relationship Manager
Credit Officer
Compliance Officer
Legal Counsel
Risk Manager
Portfolio Manager
Trading Director
Wealth Manager
Operations Manager
Client Service Manager
Financial Advisor
Credit Risk Analyst
Collateral Manager
Treasury Manager
Investment Consultant
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