¶¶Òõ¶ÌÊÓƵ

The Mortgage Loan Contract serves as the primary legal instrument for real estate financing in Switzerland, used when a borrower seeks to obtain funding secured against real property. This document is essential for both residential and commercial property transactions in the Swiss market, where mortgage lending is subject to strict regulatory oversight. The contract must comply with federal and cantonal laws, including the Swiss Civil Code, Banking Act, and FINMA directives, particularly regarding loan-to-value ratios and affordability criteria. The document typically includes detailed provisions on property valuation, mandatory insurance requirements, and specific Swiss mortgage security instruments such as the 'Schuldbriefe' (mortgage notes). The Mortgage Loan Contract is structured to protect both lender and borrower interests while ensuring compliance with Switzerland's conservative lending practices and financial stability requirements.

1. Parties: Identification of the lender (bank) and borrower(s), including full legal names, addresses, and any registration numbers

2. Background: Context of the loan agreement, including property details and purpose of the mortgage

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

4. Loan Details: Principal amount, currency, purpose, and term of the loan

5. Interest and Fees: Interest rate (fixed or variable), calculation method, payment dates, and applicable fees

6. Security: Details of the mortgage security, property charges, and any additional collateral

7. Repayment Terms: Repayment schedule, installment amounts, and early repayment provisions

8. Borrower's Representations and Warranties: Borrower's confirmations regarding their financial status, property ownership, and legal capacity

9. Borrower's Covenants: Ongoing obligations including property maintenance, insurance, and financial reporting

10. Events of Default: Circumstances constituting default and consequences thereof

11. Bank's Rights and Remedies: Actions the bank can take in case of default or breach

12. Insurance Requirements: Mandatory insurance coverage for the property and assignment of policies

13. Costs and Expenses: Allocation of legal fees, registration costs, and other expenses

14. Notices: Communication methods and contact details for official notices

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