Master Credit Agreement Template for Switzerland

The Master Credit Agreement serves as the primary documentation for establishing and governing credit relationships under Swiss law. It is typically used when parties anticipate an ongoing lending relationship that may involve multiple credit facilities over time. The agreement provides a standardized framework that addresses all essential aspects of the credit relationship, including facility terms, conditions precedent, utilization mechanics, pricing, representations, warranties, and covenants. It incorporates specific requirements of Swiss banking regulations, the Swiss Code of Obligations, and other relevant Swiss financial services laws. The document is particularly important for financial institutions and corporate borrowers seeking to establish a long-term credit relationship with the flexibility to accommodate various types of credit facilities under a single master agreement.

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

2. Background: Context of the agreement and general purpose of the credit facility

3. Definitions and Interpretation: Comprehensive list of defined terms and interpretation rules used throughout the agreement

4. The Facility: Fundamental terms of the credit facility, including type, purpose, and total amount

5. Conditions Precedent: Prerequisites that must be satisfied before any utilization

6. Utilization: Process and requirements for drawing down the facility

7. Interest: Interest calculation, periods, rates, and payment provisions

8. Repayment: Terms and schedule for repayment of the facility

9. Prepayment and Cancellation: Conditions and processes for voluntary and mandatory prepayments

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

11. Information Undertakings: Borrower's obligations to provide financial and other information

12. General Undertakings: Borrower's operational and financial covenants

13. Events of Default: Circumstances constituting default and their consequences

14. Changes to Parties: Rules for assignments, transfers, and substitution of parties

15. Administration: Payment mechanics, calculations, and notices

16. Governing Law and Jurisdiction: Choice of Swiss law and jurisdiction provisions

17. Enforcement: Provisions relating to enforcement and debt collection under Swiss law