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Promissory Note And Deed Of Trust Template for Switzerland

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Key Requirements PROMPT example:

Promissory Note And Deed Of Trust

"I need a Promissory Note and Deed of Trust under Swiss law for a CHF 2.5 million commercial property loan in Zurich, with quarterly interest payments and a maturity date of March 15, 2025, including provisions for early repayment and multiple co-signers."

Document background
The Promissory Note and Deed of Trust is a crucial document used in secured lending transactions under Swiss law, particularly when real property serves as collateral for a loan. This document type combines two essential elements: a promissory note (Schuldschein) that evidences the debt obligation and payment terms, and a deed of trust that creates a security interest in real property to protect the lender's interests. It is commonly used in both commercial and residential property financing, providing a structured approach to secured lending while complying with Swiss federal regulations and cantonal property laws. The document includes specific provisions required by Swiss law regarding property rights, registration requirements, and enforcement procedures, making it particularly suitable for transactions where lenders require strong security protection while maintaining flexibility in transferring or assigning the debt obligation.
Suggested Sections

1. Parties: Identification of the Lender (Beneficiary), Borrower (Maker of the Note), and Trustee

2. Background: Context of the loan agreement and purpose of the security arrangement

3. Definitions: Key terms used throughout the document, including property description, payment terms, and security interests

4. Promise to Pay: Core provision stating the principal amount, interest rate, and payment terms

5. Security Interest: Description of the property being used as security and the trust arrangement

6. Payment Terms: Detailed payment schedule, method of payment, and calculation of interest

7. Default Provisions: Circumstances constituting default and consequences thereof

8. Rights and Duties of Trustee: Specific powers and obligations of the trustee regarding the security

9. Property Maintenance and Insurance: Obligations regarding property upkeep and required insurance coverage

10. Assignment and Transfer: Provisions regarding the transfer of the note or security interest

11. Governing Law and Jurisdiction: Specification of Swiss law application and jurisdiction

12. Execution: Formal signing requirements and notarization provisions

Optional Sections

1. Prepayment Provisions: Include when early payment options are permitted, specifying any penalties or conditions

2. Multiple Properties: Include when the trust deed covers multiple properties as security

3. Currency Provisions: Include for international transactions or when payments are in non-Swiss currency

4. Co-Signers: Include when there are additional guarantors or co-signers of the note

5. Subordination Provisions: Include when there are other security interests or liens on the property

6. Cross-Default Provisions: Include when the note is part of a larger financing arrangement

7. Environmental Provisions: Include when the property has potential environmental concerns or risks

Suggested Schedules

1. Property Description Schedule: Detailed legal description of the secured property

2. Payment Schedule: Amortization table showing payment dates and amounts

3. Insurance Requirements: Detailed specifications of required insurance coverage

4. Form of Transfer Certificate: Template for documenting any transfer of the note

5. Property Inspection Report: Initial condition report of the secured property

6. Prior Liens Schedule: List of any existing liens or encumbrances on the property

7. Required Notices Form: Templates for various required notices under the agreement

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

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Relevant Industries

Banking & Financial Services

Real Estate

Construction

Commercial Property Development

Residential Property Development

Investment Management

Legal Services

Insurance

Private Wealth Management

Corporate Finance

Relevant Teams

Legal

Finance

Real Estate

Risk Management

Compliance

Credit Administration

Property Management

Investment

Corporate Finance

Loan Administration

Relevant Roles

Legal Counsel

Finance Director

Real Estate Manager

Mortgage Officer

Trust Officer

Compliance Officer

Property Manager

Credit Risk Manager

Investment Manager

Corporate Lawyer

Banking Officer

Real Estate Attorney

Loan Officer

Property Developer

Financial Controller

Chief Financial 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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