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The Pre-Financing Agreement is essential in transactions where upfront funding is required before the completion or execution of a primary business activity. This document, governed by Swiss law, is commonly used in project finance, trade finance, and business expansion scenarios where parties need to secure funding commitments before proceeding with their main commercial activities. The agreement typically includes detailed provisions on funding amounts, drawdown mechanics, security arrangements, and repayment terms, all structured to comply with Swiss financial regulations and the Swiss Code of Obligations. It's particularly valuable in international transactions due to Switzerland's reputation for financial stability and its well-developed legal framework for commercial and financial agreements.

1. Parties: Identification of the financing party and the recipient, including full legal names, registration details, and addresses

2. Background: Context of the pre-financing arrangement, purpose of the funding, and brief description of the underlying transaction or project

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

4. Facility Amount and Purpose: Specification of the pre-financing amount, currency, and permitted use of funds

5. Conditions Precedent: Prerequisites that must be satisfied before the financing becomes available

6. Drawdown Mechanics: Procedures and requirements for requesting and receiving the pre-financing funds

7. Interest and Fees: Interest rate, calculation method, payment dates, and any applicable fees

8. Repayment Terms: Repayment schedule, method of payment, and prepayment provisions

9. Security and Collateral: Description of security arrangements and collateral requirements

10. Representations and Warranties: Statements of fact and assurances given by the parties

11. Covenants: Ongoing obligations and restrictions on the recipient's activities

12. Events of Default: Circumstances that constitute default and consequences thereof

13. Termination: Conditions and procedures for early termination of the agreement

14. Governing Law and Jurisdiction: Confirmation of Swiss law governance and jurisdiction for disputes

15. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability