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Revolving Bank Guarantee Template for Switzerland

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Key Requirements PROMPT example:

Revolving Bank Guarantee

"I need a Revolving Bank Guarantee under Swiss law for an international trading company, with a maximum facility amount of 5 million CHF, multiple currency options (CHF, EUR, USD), and automatic reinstatement after each claim, effective from March 1, 2025."

Document background
The Revolving Bank Guarantee is a sophisticated financial instrument used when parties require ongoing financial security that automatically replenishes after each valid claim. This document type is particularly valuable in continuing business relationships, large-scale projects, or recurring trade transactions where traditional single-use guarantees would be impractical. Under Swiss law, which is renowned for its robust banking and financial regulations, this guarantee type combines the security of a bank guarantee with the flexibility of a revolving facility. The document must comply with Swiss banking regulations, including the Swiss Banking Act and FINMA requirements, while potentially accommodating international banking practices. It typically includes detailed provisions for the revolving mechanism, claim procedures, compliance requirements, and risk management protocols, making it suitable for complex commercial arrangements requiring ongoing financial assurance.
Suggested Sections

1. Parties: Identification of the Guarantor Bank, the Applicant (Principal), and the Beneficiary

2. Background: Context of the guarantee, underlying business relationship, and purpose of the revolving facility

3. Definitions: Key terms including Guarantee Amount, Validity Period, Revolving Mechanism, Trigger Events, and other technical banking terms

4. Guarantee Amount and Currency: Specification of the maximum guarantee amount, currency, and calculation methods

5. Revolving Nature and Mechanism: Details of how the guarantee revolves, reinstatement conditions, and cycle periods

6. Conditions Precedent: Prerequisites for the guarantee becoming effective and conditions for revolving facility activation

7. Demand Requirements: Formal requirements for making a valid demand under the guarantee

8. Payment Terms: Timeline and process for payment upon valid demand, including currency and method

9. Bank's Rights and Obligations: Scope of bank's commitments, examination rights, and compliance requirements

10. Fees and Charges: All applicable fees, commissions, and charges for maintaining and utilizing the guarantee

11. Term and Expiry: Duration of the guarantee, expiry conditions, and notice requirements

12. Governing Law and Jurisdiction: Swiss law as governing law and jurisdiction specifications

Optional Sections

1. Counter-Indemnity: Terms of indemnification by the Applicant to the Bank, used when additional security is required

2. Multiple Beneficiaries: Additional provisions for cases with more than one beneficiary

3. Assignment Provisions: Terms governing if and how the guarantee rights can be assigned, included when assignment might be needed

4. Foreign Law Interface: Provisions dealing with cross-border aspects, needed for international transactions

5. Electronic Presentation: Procedures for electronic demand presentation, included when digital processing is agreed

6. Force Majeure: Extended force majeure provisions, included for high-value or complex guarantees

7. Language: Provisions regarding official language and translations, needed for international use

8. Anti-Money Laundering Compliance: Detailed AML provisions, included for high-risk transactions or parties

Suggested Schedules

1. Schedule 1 - Form of Demand: Template for making a valid demand under the guarantee

2. Schedule 2 - Fee Schedule: Detailed breakdown of all fees, charges, and commission rates

3. Schedule 3 - Revolving Calculation Examples: Examples illustrating how the revolving mechanism works

4. Schedule 4 - Required Documents: List of documents required for demand verification

5. Schedule 5 - Communication Procedures: Protocols for communications between parties

6. Appendix A - Specimen Signatures: Authorized signatures for all parties

7. Appendix B - Bank's Standard Terms: Standard terms and conditions of the issuing bank

8. Appendix C - Compliance Documentation: Required regulatory and compliance documentation

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














































Clauses


































Relevant Industries

Banking and Financial Services

International Trade

Construction and Infrastructure

Manufacturing

Energy and Utilities

Telecommunications

Real Estate Development

Mining and Resources

Import/Export

Retail and Distribution

Government and Public Sector

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Trade Finance

Corporate Banking

International Business

Credit

Commercial Operations

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Risk Manager

Legal Counsel

Compliance Officer

Trade Finance Manager

Banking Relationship Manager

Corporate Finance Manager

Credit Risk Officer

Commercial Director

Contract Manager

Financial Controller

International Trade Specialist

Senior Banking 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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