The Margin Loan Agreement is essential for financial institutions providing secured lending facilities in Switzerland. It is used when a lender extends credit to a borrower against a portfolio of financial instruments or other eligible collateral, typically for investment purposes. The agreement must comply with Swiss regulatory requirements, including those under FIDLEG/FinSA, FINIG/FinIA, and Swiss banking regulations. The document details the facility terms, margin requirements, eligible collateral criteria, valuation methodologies, and enforcement mechanisms. This type of agreement is particularly relevant in private banking, wealth management, and institutional investment contexts, where sophisticated investors seek leverage for their investment strategies. The Margin Loan Agreement needs to address both the commercial aspects of the lending relationship and the regulatory requirements specific to the Swiss financial services industry.

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

2. Background: Context of the agreement, relationship between parties, and purpose of the margin loan facility

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

4. Facility and Purpose: Details of the margin loan facility, including amount, purpose, and availability period

5. Drawdown Conditions: Conditions precedent and ongoing conditions for drawdowns under the facility

6. Interest and Fees: Interest calculation methodology, payment dates, default interest, and applicable fees

7. Margin Requirements: Calculation of margin requirements, eligible collateral, and maintenance margin levels

8. Collateral Arrangements: Provisions regarding posting, maintaining, and releasing collateral, including security interest creation

9. Margin Calls: Triggers for margin calls, notification process, and required actions

10. Representations and Warranties: Standard and specific representations and warranties from the borrower

11. Covenants: Positive and negative covenants applicable to the borrower

12. Events of Default: Circumstances constituting default and consequences thereof

13. Enforcement Rights: Lender's rights and remedies upon default, including collateral liquidation

14. Payment Provisions: Payment mechanics, currency, and settlement arrangements

15. Tax Provisions: Treatment of taxes, including withholding tax obligations

16. Termination: Termination events and process, including voluntary and mandatory prepayment

17. Notices: Communication requirements and contact details

18. Governing Law and Jurisdiction: Swiss law as governing law and jurisdiction provisions

19. Miscellaneous: Standard boilerplate provisions including amendments, assignments, and severability