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Promissory Note And Security Agreement Template for Switzerland

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Key Requirements PROMPT example:

Promissory Note And Security Agreement

"I need a Promissory Note and Security Agreement under Swiss law for a CHF 500,000 equipment financing deal between our manufacturing company and ABC Bank AG, with our new production line machinery as collateral and quarterly payments starting March 2025."

Document background
The Promissory Note and Security Agreement is a fundamental document in Swiss secured lending practices, typically used when a borrower needs to formally document a debt obligation while providing security for the repayment. This document type is particularly relevant in commercial lending, asset-based financing, and business transactions where the lender requires collateral protection. It combines the formal requirements of a promissory note under the Swiss Code of Obligations with security arrangements governed by the Swiss Civil Code, creating a comprehensive instrument that both evidences the debt and establishes the lender's security interest. The document is essential in situations where parties need to create a legally enforceable debt obligation with the added protection of collateral, common in both commercial and private lending scenarios within Switzerland.
Suggested Sections

1. Parties: Identification of the maker (debtor) and payee (creditor) with full legal names and addresses

2. Background: Context of the debt obligation and security arrangement, including the purpose of the loan

3. Definitions: Key terms used throughout the agreement, including definitions of Collateral, Security Interest, Events of Default, etc.

4. Promise to Pay: Unconditional promise to pay a specific sum, including the principal amount, interest rate, and payment schedule

5. Security Interest: Description of the security interest being granted, including the nature and scope of the collateral

6. Representations and Warranties: Maker's declarations regarding ownership and right to pledge collateral, absence of other liens, etc.

7. Covenants: Ongoing obligations of the maker regarding maintenance and protection of collateral

8. Events of Default: Specific circumstances that constitute default and trigger enforcement rights

9. Remedies: Creditor's rights and remedies upon default, including collection and enforcement procedures

10. Governing Law and Jurisdiction: Specification of Swiss law as governing law and designation of competent courts

Optional Sections

1. Guaranty: Used when a third party guarantees the debt obligation

2. Insurance Requirements: Required when collateral must be insured

3. Additional Collateral: Used when multiple types of collateral are involved or when describing conditions for requiring additional collateral

4. Assignment and Transfer: Include when the note is intended to be transferable

5. Subordination: Required when the security interest must be subordinated to other creditors

6. Currency Provisions: Include for cross-border transactions involving multiple currencies

7. Tax Provisions: Include when tax implications need to be addressed explicitly

Suggested Schedules

1. Schedule A - Collateral Description: Detailed description and inventory of all assets serving as collateral

2. Schedule B - Payment Schedule: Amortization table or detailed payment terms including dates and amounts

3. Schedule C - Permitted Liens: List of pre-existing or permitted liens on the collateral

4. Appendix 1 - Form of Notice: Standard form for notices between parties

5. Appendix 2 - Collateral Valuation: Initial valuation of collateral and methodology for future valuations

6. Appendix 3 - Insurance Certificates: Copies of required insurance policies covering the collateral

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

Relevant legal definitions
































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Relevant Industries

Banking & Financial Services

Commercial Real Estate

Manufacturing

Agriculture

Technology

Healthcare

Transportation & Logistics

Construction

Retail

Energy & Resources

Relevant Teams

Legal

Finance

Treasury

Credit & Collections

Risk Management

Compliance

Corporate Secretariat

Loan Administration

Asset Management

Contract Management

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Legal Counsel

Credit Manager

Risk Manager

Compliance Officer

Corporate Secretary

Banking Relationship Manager

Security Trustee

Loan Officer

Collections Manager

Asset Manager

Contract Administrator

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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