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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."
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
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
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
Banking & Financial Services
Real Estate
Manufacturing
Commercial Lending
Asset Finance
Private Equity
Small & Medium Enterprises
Agriculture
Industrial
Technology
Construction
Legal
Finance
Treasury
Credit Risk
Compliance
Corporate Secretariat
Commercial
Business Development
Loan Administration
Security Administration
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
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