Credit Agreement Contract for Switzerland

Credit Agreement Contract Template for Switzerland

A Swiss Credit Agreement Contract is a legally binding financial instrument governed by Swiss law, particularly the Swiss Code of Obligations and the Federal Consumer Credit Act. This agreement establishes the terms and conditions under which a lender provides credit to a borrower, including detailed provisions for interest calculation, repayment terms, security arrangements, and default procedures. The document incorporates specific Swiss legal requirements regarding disclosure, consumer protection, and banking regulations, while providing comprehensive coverage of the parties' rights and obligations within Switzerland's sophisticated financial framework.

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What is a Credit Agreement Contract?

The Credit Agreement Contract under Swiss law serves as the primary documentation for credit facilities in Switzerland's banking and financial sector. This document is essential when establishing formal lending arrangements between financial institutions and borrowers, whether for corporate financing, asset acquisition, or general business purposes. The agreement must comply with Swiss federal legislation, including the Code of Obligations (OR/CO) and the Federal Consumer Credit Act (KKG/LCC), while incorporating specific provisions for interest rates, security arrangements, and enforcement mechanisms recognized under Swiss law. It's particularly relevant for both domestic Swiss transactions and international financing arrangements where parties choose Swiss law for its stability and well-established legal framework. The document typically includes comprehensive provisions for drawdown mechanics, repayment terms, representations and warranties, and events of default, all structured to align with Swiss banking practices and regulatory requirements.

What sections should be included in a Credit Agreement Contract?

1. Parties: Identification of the lender and borrower with full legal names and addresses

2. Background: Context of the credit facility and purpose of the loan

3. Definitions: Defined terms used throughout the agreement

4. The Facility: Details of the credit facility including amount, purpose, and availability period

5. Conditions Precedent: Conditions that must be satisfied before drawdown

6. Drawdown: Procedures and requirements for drawing down the credit facility

7. Interest: Interest rate, calculation method, and payment dates

8. Repayment: Terms and schedule for repayment of the principal amount

9. Prepayment: Provisions for early repayment and any associated fees

10. Representations and Warranties: Statements of fact and assurances given by the borrower

11. Covenants: Ongoing obligations of the borrower during the term of the facility

12. Events of Default: Circumstances that constitute default and consequences

13. Security: Details of any security or guarantees provided

14. Costs and Expenses: Allocation of costs and expenses related to the facility

15. Notices: Communication procedures between parties

16. Assignment and Transfer: Rights to assign or transfer the agreement

17. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction

18. Execution: Signature blocks and execution requirements

What sections are optional to include in a Credit Agreement Contract?

1. Syndication Provisions: Required if multiple lenders are involved or if syndication is contemplated

2. Tax Gross-Up and Indemnities: Detailed tax provisions needed for cross-border lending or complex tax structures

3. Currency Provisions: Required if the facility involves multiple currencies

4. Agency and Security Trustee: Needed when there is a facility agent or security trustee structure

5. Subordination: Required when there are multiple creditors with different priorities

6. Insurance: Detailed insurance requirements for secured lending

7. Compliance with Laws: Extended regulatory compliance section for regulated borrowers or specific industries

What schedules should be included in a Credit Agreement Contract?

1. Schedule 1 - Conditions Precedent Documents: List of required documents and conditions to be satisfied before first drawdown

2. Schedule 2 - Form of Drawdown Request: Template for borrower to request drawdown of the facility

3. Schedule 3 - Repayment Schedule: Detailed amortization schedule if applicable

4. Schedule 4 - Interest Calculation Examples: Examples showing how interest will be calculated

5. Schedule 5 - Security Documents: List and copies of security documents if applicable

6. Schedule 6 - Financial Covenants Calculations: Detailed methodology for calculating financial covenants

7. Appendix A - Contact Details: Contact information for all relevant parties and representatives

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Switzerland

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking & Financial Services

Corporate Finance

Real Estate

Manufacturing

Technology

Healthcare

Retail

Infrastructure

Energy

Transportation

Hospitality

Agriculture

Construction

Professional Services

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Banking

Credit Administration

Business Development

Operations

Regulatory Affairs

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Banking Relationship Manager

Credit Risk Manager

Treasury Manager

Financial Controller

Compliance Officer

Managing Director

Credit Officer

Investment Manager

Business Development Director

Contract Manager

Risk Assessment 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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