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Secured Promissory Note Template for Switzerland

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Key Requirements PROMPT example:

Secured Promissory Note

"I need a Swiss-law Secured Promissory Note for a CHF 2.5 million equipment financing loan to a manufacturing company, secured by industrial machinery, with quarterly interest payments and bullet repayment due March 2025."

Document background
A Secured Promissory Note is commonly used in Switzerland when a lender requires both a formal acknowledgment of debt and security over specific assets. This document type is particularly useful in commercial lending, asset finance, and business transactions where the lender seeks additional protection beyond a simple promise to pay. The note must comply with Swiss legal requirements, particularly the formal requirements under the Code of Obligations for promissory notes and the Civil Code for security interests. It typically includes the principal amount, interest rate, payment terms, detailed description of the collateral, and enforcement provisions. The secured nature of the note provides the lender with priority rights over the specified collateral in case of default, subject to Swiss debt enforcement procedures.
Suggested Sections

1. Parties: Identification of the Lender (Payee) and Borrower (Maker) with full legal names and addresses

2. Background: Brief context of the loan arrangement and security agreement

3. Definitions: Key terms used throughout the document, including 'Secured Obligations', 'Collateral', 'Event of Default'

4. Promise to Pay: The core promise to pay, stating the principal amount, interest rate, and maturity date

5. Payment Terms: Details of payment schedule, method of payment, and currency

6. Interest: Interest rate, calculation method, and payment frequency

7. Security Interest: Description of the collateral and creation of the security interest

8. Representations and Warranties: Basic representations regarding authority, ownership of collateral, and no conflicts

9. Events of Default: List of circumstances constituting default

10. Remedies: Rights and remedies of the Lender upon default

11. Notices: Method and addresses for formal communications

12. Governing Law and Jurisdiction: Specification of Swiss law and jurisdiction

Optional Sections

1. Prepayment Provisions: Include when early repayment is permitted, specifying any penalties or conditions

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

3. Insurance Requirements: Include when specific insurance must be maintained on the collateral

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

5. Further Assurances: Include when additional documentation or actions may be required for perfecting security

6. Costs and Expenses: Include when specific cost allocations need to be addressed

7. Multiple Borrowers: Include when there are multiple makers of the note

8. Subordination: Include when the note needs to be subordinated to other debt

Suggested Schedules

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

2. Schedule B - Payment Schedule: Amortization table or payment schedule if installment payments are required

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

4. Appendix 1 - Form of Notice: Standard form for any required notices

5. Appendix 2 - Collateral Valuation: Initial valuation of the collateral if required

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

Real Estate

Manufacturing

Commercial Lending

Asset Finance

Private Equity

Small & Medium Enterprises

Agriculture

Industrial

Technology

Construction

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Secretariat

Commercial

Business Development

Loan Administration

Security Administration

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Credit Manager

Risk Manager

Commercial Director

Business Development Manager

Loan Officer

Security Trustee

Collateral Manager

Finance Manager

Corporate Secretary

Compliance 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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