Equity Loan Agreement for Switzerland

Equity Loan Agreement Template for Switzerland

A Swiss-law governed agreement that establishes the terms and conditions for the temporary transfer of equity securities from a lender to a borrower in exchange for collateral. The document comprehensively covers the lending arrangement, including delivery and return of securities, collateral requirements, corporate actions, fees, and regulatory compliance under Swiss financial regulations. It incorporates specific provisions required by Swiss law, particularly the Swiss Code of Obligations and Federal Act on Financial Market Infrastructures, while addressing risk management, reporting obligations, and settlement procedures in accordance with Swiss financial market practice.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Equity Loan Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Equity Loan Agreement?

The Equity Loan Agreement is a sophisticated financial instrument used in the Swiss market to facilitate securities lending transactions between financial institutions. This document is essential when parties wish to establish a framework for the temporary transfer of equity securities, typically for purposes such as short selling, settlement coverage, or market making activities. The agreement must comply with Swiss regulatory requirements, including the Swiss Code of Obligations and financial market regulations. It details crucial aspects such as the transfer mechanism, collateral arrangements, corporate action handling, and risk management procedures. The document is particularly important in the Swiss financial center, where securities lending plays a vital role in maintaining market liquidity and efficiency. The Equity Loan Agreement includes specific provisions addressing Swiss regulatory compliance, tax implications, and established market practices in the Swiss financial sector.

What sections should be included in a Equity Loan Agreement?

1. Parties: Identification of the lender and borrower, including their full legal names, registration details, and addresses

2. Background: Context of the agreement and brief description of the parties' intentions regarding the equity loan arrangement

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Loan of Securities: Core terms of the securities loan, including identification of securities, loan period, and transfer mechanisms

5. Delivery and Return: Procedures and timing for the delivery of loaned securities and their eventual return

6. Collateral: Requirements for collateral, including type, value, maintenance, and margin calls

7. Fees and Payments: Loan fees, payment schedules, and calculation methods

8. Corporate Actions: Treatment of dividends, rights issues, and other corporate actions during the loan period

9. Representations and Warranties: Standard representations and warranties from both parties

10. Tax Provisions: Treatment of taxes, including withholding tax and manufactured dividends

11. Events of Default: Definition of default events and consequences

12. Termination: Circumstances and procedures for early termination

13. Governing Law and Jurisdiction: Confirmation of Swiss law governance and jurisdiction for disputes

14. Notices: Communication procedures and contact details

15. General Provisions: Standard boilerplate clauses including severability, amendments, and entire agreement

What sections are optional to include in a Equity Loan Agreement?

1. Regulatory Compliance: Specific provisions addressing compliance with Swiss financial regulations, used when parties are regulated entities

2. Multiple Borrowers/Lenders: Additional provisions for agreements involving multiple parties on either side

3. Cross-Border Provisions: Special provisions for international transactions, including conflict of laws

4. Electronic Trading Platform: Provisions for agreements executed through electronic platforms

5. Custody Arrangements: Specific provisions when involving third-party custodians

6. Netting Arrangements: Provisions for netting of obligations, used in more complex lending relationships

7. Agency Provisions: Required when one or more parties act as agents rather than principals

8. Credit Support: Additional credit support arrangements beyond standard collateral requirements

What schedules should be included in a Equity Loan Agreement?

1. Schedule 1 - Loaned Securities: Detailed description of the securities to be loaned, including ISIN numbers and quantities

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, calculation methods, and payment terms

3. Schedule 3 - Collateral Requirements: Specific collateral parameters, including haircuts and eligible collateral types

4. Schedule 4 - Operating Procedures: Detailed procedures for transfers, corporate actions, and communications

5. Appendix A - Form of Loan Confirmation: Template for confirming individual loan transactions

6. Appendix B - Notice Details: Detailed contact information and notice requirements for both parties

7. Appendix C - Tax Documentation: Required tax forms and declarations

8. Appendix D - Settlement Instructions: Detailed instructions for securities and collateral transfers

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

Finance Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Banking

Investment Management

Securities Trading

Asset Management

Insurance

Financial Technology

Investment Banking

Wealth Management

Capital Markets

Relevant Teams

Legal

Compliance

Trading Operations

Risk Management

Portfolio Management

Securities Operations

Collateral Management

Trading

Settlement

Financial Control

Securities Finance

Regulatory Reporting

Investment

Treasury

Middle Office

Relevant Roles

Securities Lending Manager

Legal Counsel

Compliance Officer

Trading Operations Manager

Risk Manager

Portfolio Manager

Securities Operations Specialist

Collateral Manager

Trading Desk Manager

Settlement Officer

Financial Controller

Head of Securities Finance

Regulatory Reporting Officer

Investment Director

Chief Investment Officer

Industries
Swiss Code of Obligations (OR): Primary source of Swiss contract law governing the formation, performance, and termination of contracts, including loan agreements and securities transactions (Articles 305-318 for loan contracts)
Federal Act on Financial Market Infrastructures (FinfraG): Regulates securities lending, trading, and clearing activities, including reporting obligations and risk management requirements for equity lending transactions
Swiss Federal Act on Banks and Savings Banks (Banking Act): Provides regulatory framework for banking institutions engaging in securities lending and related financial activities
FINMA Circular 2010/2 on Repos and Securities Lending: Specific regulatory guidelines on securities lending transactions, including equity loans, collateral requirements, and risk management practices
Swiss Civil Code (ZGB): Contains fundamental principles of Swiss civil law that may affect the equity loan relationship, particularly regarding property rights and securities
Federal Act on Intermediated Securities (FISA): Governs the custody and transfer of intermediated securities, relevant for the handling of equities in lending transactions
Swiss Federal Act on Stock Exchanges and Securities Trading (SESTA): Provides framework for securities trading and related activities, including provisions affecting equity lending
Swiss Anti-Money Laundering Act (AMLA): Compliance requirements for financial transactions, including due diligence obligations in equity lending
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

Find the exact document you need

Employees Loan Agreement

A Swiss law-governed agreement establishing terms for an employer-provided loan to an employee, including loan amount, repayment terms, and salary deduction arrangements.

Download

Facility Agreement Loan

A Swiss law-governed facility agreement establishing terms and conditions for credit facilities between lenders and borrowers, compliant with Swiss banking regulations.

Download

Evergreen Loan Agreement

Swiss law-governed evergreen loan agreement template providing for automatic renewal of credit facility with comprehensive regulatory compliance features.

Download

Sellers Finance Agreement

A Swiss law-governed agreement combining asset sale and seller-provided financing terms, structured in compliance with Swiss commercial and financial regulations.

Download

Simple Business Loan Agreement

A Swiss law-governed agreement establishing terms and conditions for a business loan between a lender and borrower, including loan amount, interest rates, and repayment terms.

Download

Overfacility Agreement

A Swiss law-governed agreement establishing terms for additional credit facilities beyond existing arrangements, detailing facility amount, utilization, and repayment terms.

Download

Tripartite Loan Agreement

A Swiss law-governed agreement establishing a three-party loan arrangement, detailing loan terms, security provisions, and parties' obligations.

Download

Trade Finance Facility Agreement

Swiss law-governed agreement establishing terms for trade finance facilities between a financial institution and borrower, including provisions for trade finance instruments and regulatory compliance.

Download

Separation Financial Agreement

A Swiss law-governed agreement detailing financial arrangements and asset division between separating spouses.

Download

Promissory Loan Agreement

A Swiss law loan agreement incorporating a promissory note, establishing terms for lending money with enhanced enforceability under Swiss law.

Download

Financial Support Agreement

A Swiss law-governed agreement establishing terms and conditions for providing financial support between parties, including disbursement and repayment terms.

Download

Contract For Car Payments

A Swiss law-governed agreement establishing terms for vehicle purchase through installment payments, compliant with Swiss federal and cantonal regulations.

Download

Bank Guarantee Agreement

A Swiss law-governed agreement where a bank guarantees payment to a beneficiary upon the principal debtor's default, subject to specified terms and conditions.

Download

Debtor In Possession Loan Agreement

A Swiss law-governed financing agreement enabling distressed companies to obtain new funding while maintaining operational control during restructuring proceedings.

Download

Recourse Loan Agreement

A Swiss law lending agreement that provides the lender with full recourse rights against the borrower's assets for loan recovery.

Download

Warehouse Loan Agreement

A Swiss law financing arrangement where loans are secured against warehoused goods, combining lending and storage terms under Swiss legal requirements.

Download

Loan Origination Agreement

Swiss law-governed agreement establishing terms and conditions for loan provision, including loan amount, interest, repayment terms, and security arrangements.

Download

Loan Agreement Between Friends

A Swiss-law governed friendly loan agreement that formalizes personal lending arrangements while maintaining appropriate legal protections under Swiss law.

Download

Factoring Receivables Agreement

A Swiss law agreement governing the sale and assignment of receivables from a business to a financial institution, structured under the Swiss Code of Obligations.

Download

Loan Syndication Agreement

A Swiss law-governed agreement establishing terms for a syndicated loan facility, coordinating multiple lenders' provision of financing to a borrower under Swiss banking regulations.

Download

Debenture Loan Agreement

A Swiss law-governed agreement establishing terms for issuing debt securities to investors, structured under the Swiss Code of Obligations.

Download

Bond Loan Agreement

A Swiss law-governed agreement establishing terms and conditions for bond issuance, including payment obligations, covenants, and bondholder rights.

Download

Royalty Based Financing Agreement

A Swiss law agreement providing company financing in exchange for future revenue-based royalty payments, structured under Swiss financial regulations and the Code of Obligations.

Download

Inventory Financing Agreement

A Swiss law-governed agreement establishing terms for inventory-based financing, including security arrangements and operational requirements.

Download

Loan Market Agreement

Swiss law-governed lending agreement establishing terms and conditions for credit facilities, compliant with Swiss banking regulations and market standards.

Download

Equity Loan Agreement

A Swiss-law governed agreement for the temporary lending of equity securities between financial institutions, incorporating Swiss regulatory requirements and market practices.

Download

Senior Loan Agreement

Swiss law-governed agreement establishing terms for a senior loan facility with priority claim on borrower's assets and cash flows.

Download

Guarantor Agreement For Loan

A Swiss law agreement where a guarantor secures a borrower's loan obligations, subject to Swiss Code of Obligations requirements.

Download

Debt Factoring Agreement

Swiss law-governed agreement for the purchase of accounts receivable by a financial institution from a business, detailing terms, procedures, and risk allocation.

Download

Inter Company Loan Agreement

A Swiss law-governed agreement establishing loan arrangements between related companies, incorporating key Swiss regulatory and tax compliance requirements.

Download

Term Facility Agreement

A Swiss law-governed agreement establishing terms and conditions for a fixed-term loan facility, compliant with Swiss banking and financial regulations.

Download

Revenue Based Financing Agreement

A Swiss law agreement establishing terms for revenue-based financing, where funding is provided in exchange for a share of future revenue streams.

Download

Profit Sharing Loan Agreement

Swiss law-governed agreement for loan financing with profit-sharing mechanisms, combining debt and equity characteristics.

Download

Pre Financing Agreement

A Swiss law-governed agreement establishing terms for advance funding provision, including financing conditions, security arrangements, and repayment obligations.

Download

Debt Facility Agreement

Swiss law-governed agreement establishing terms for debt financing, including facility terms, security arrangements, and compliance with Swiss banking regulations.

Download

Vehicle Lease Purchase Agreement

A Swiss-law governed agreement combining vehicle leasing and purchase arrangements, establishing terms for vehicle possession with eventual ownership transfer upon completion of payments.

Download

Loan Sharing Agreement

Swiss law-governed agreement establishing terms and conditions for multiple lenders sharing in a loan facility.

Download

Equity Financing Agreement

A Swiss law-governed agreement detailing terms and conditions for equity investment in a company, including share rights and investor protections.

Download

Unsecured Loan Agreement

Swiss law-governed agreement establishing terms for an unsecured loan between lender and borrower, compliant with Swiss Code of Obligations.

Download

House Loan Agreement

A Swiss-law governed agreement establishing terms and conditions for a property-secured loan between a financial institution and borrower, compliant with Swiss banking and property regulations.

Download
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now