Revolving Bank Guarantee Template for Switzerland

A Revolving Bank Guarantee under Swiss law is a financial instrument where a bank commits to provide a continuous guarantee facility that automatically reinstates after each claim, up to a specified maximum amount. This document, governed by Swiss law including the Swiss Code of Obligations and Banking Act, establishes the terms and conditions under which the bank will issue and maintain the guarantee, including the revolving mechanism, claim procedures, reinstatement conditions, and compliance requirements. It provides ongoing financial security while maintaining flexibility for recurring business transactions, incorporating Swiss banking regulations and international banking standards where applicable.

Typically:
i
This cost is based on prices provided by
6 legal services in your market.
With Genie AI:

£0

i
Generate and export your first
document completely free.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get template free
Upload to review

Your data doesn't train Genie's AI

You keep IP ownership of your docs

4.6 / 5
4.6 / 5
4.8 / 5

What is a Revolving Bank Guarantee?

The Revolving Bank Guarantee is a sophisticated financial instrument used when parties require ongoing financial security that automatically replenishes after each valid claim. This document type is particularly valuable in continuing business relationships, large-scale projects, or recurring trade transactions where traditional single-use guarantees would be impractical. Under Swiss law, which is renowned for its robust banking and financial regulations, this guarantee type combines the security of a bank guarantee with the flexibility of a revolving facility. The document must comply with Swiss banking regulations, including the Swiss Banking Act and FINMA requirements, while potentially accommodating international banking practices. It typically includes detailed provisions for the revolving mechanism, claim procedures, compliance requirements, and risk management protocols, making it suitable for complex commercial arrangements requiring ongoing financial assurance.

What sections should be included in a Revolving Bank Guarantee?

1. Parties: Identification of the Guarantor Bank, the Applicant (Principal), and the Beneficiary

2. Background: Context of the guarantee, underlying business relationship, and purpose of the revolving facility

3. Definitions: Key terms including Guarantee Amount, Validity Period, Revolving Mechanism, Trigger Events, and other technical banking terms

4. Guarantee Amount and Currency: Specification of the maximum guarantee amount, currency, and calculation methods

5. Revolving Nature and Mechanism: Details of how the guarantee revolves, reinstatement conditions, and cycle periods

6. Conditions Precedent: Prerequisites for the guarantee becoming effective and conditions for revolving facility activation

7. Demand Requirements: Formal requirements for making a valid demand under the guarantee

8. Payment Terms: Timeline and process for payment upon valid demand, including currency and method

9. Bank's Rights and Obligations: Scope of bank's commitments, examination rights, and compliance requirements

10. Fees and Charges: All applicable fees, commissions, and charges for maintaining and utilizing the guarantee

11. Term and Expiry: Duration of the guarantee, expiry conditions, and notice requirements

12. Governing Law and Jurisdiction: Swiss law as governing law and jurisdiction specifications

What sections are optional to include in a Revolving Bank Guarantee?

1. Counter-Indemnity: Terms of indemnification by the Applicant to the Bank, used when additional security is required

2. Multiple Beneficiaries: Additional provisions for cases with more than one beneficiary

3. Assignment Provisions: Terms governing if and how the guarantee rights can be assigned, included when assignment might be needed

4. Foreign Law Interface: Provisions dealing with cross-border aspects, needed for international transactions

5. Electronic Presentation: Procedures for electronic demand presentation, included when digital processing is agreed

6. Force Majeure: Extended force majeure provisions, included for high-value or complex guarantees

7. Language: Provisions regarding official language and translations, needed for international use

8. Anti-Money Laundering Compliance: Detailed AML provisions, included for high-risk transactions or parties

What schedules should be included in a Revolving Bank Guarantee?

1. Schedule 1 - Form of Demand: Template for making a valid demand under the guarantee

2. Schedule 2 - Fee Schedule: Detailed breakdown of all fees, charges, and commission rates

3. Schedule 3 - Revolving Calculation Examples: Examples illustrating how the revolving mechanism works

4. Schedule 4 - Required Documents: List of documents required for demand verification

5. Schedule 5 - Communication Procedures: Protocols for communications between parties

6. Appendix A - Specimen Signatures: Authorized signatures for all parties

7. Appendix B - Bank's Standard Terms: Standard terms and conditions of the issuing bank

8. Appendix C - Compliance Documentation: Required regulatory and compliance documentation

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

Jurisdiction

Switzerland

Publisher

Genie AI

Document Type

Bank Guarantee

Sector

Banking

Cost

Free to use

Find the exact document you need

Advance Payment Guarantee

A Swiss law-governed bank guarantee securing advance payments made by a buyer to a supplier, ensuring refund if contractual obligations are not met.

Download

Business Loan Guarantee

A Swiss law-governed guarantee agreement securing a business loan, establishing guarantor obligations and enforcement terms under the Swiss Code of Obligations.

Download

Performance Bond Guarantee

A Swiss law-governed financial guarantee instrument where a guarantor ensures a principal's performance obligations to a beneficiary, subject to Swiss Code of Obligations requirements.

Download

Letter Of Guarantee For Loan

A Swiss law-governed formal undertaking by a guarantor to secure a debtor's loan obligations, requiring specific legal formalities and potentially spousal consent.

Download

Commercial Standby Letter Of Credit

A Swiss law-governed bank undertaking to pay a beneficiary upon documented default, combining Swiss banking regulations with international standard practices.

Download

Business Bank Guarantee

A Swiss law-governed bank guarantee document where a bank commits to pay a specified sum to a beneficiary upon default of the principal's obligations.

Download

Letter Of Credit Guarantee

A Swiss law-governed banking instrument providing an irrevocable payment guarantee upon presentation of compliant documents, commonly used in international trade transactions.

Download

Standby Bank Guarantee

A Swiss law-governed bank guarantee document representing a bank's irrevocable commitment to pay a specified sum upon documented default of the principal party.

Download

Guarantee Letter

A Swiss law-governed formal undertaking by a guarantor to pay a specified sum to a beneficiary upon defined conditions, typically used as security in commercial transactions.

Download

Counter Standby Letter Of Credit

A Swiss law-governed banking instrument that provides a counter-guarantee to a primary Standby Letter of Credit, establishing a bank's commitment to reimburse another bank.

Download

Standby Letter Of Credit And Bank Guarantee

A Swiss law-governed financial instrument combining a standby letter of credit and bank guarantee, providing security for commercial transactions through bank-backed payment undertaking.

Download

Bank Guarantee Letter Of Credit

A Swiss law-governed bank undertaking to pay a beneficiary upon presentation of compliant documents, providing security in international trade transactions.

Download

Irrevocable And Unconditional Bank Guarantee

A Swiss law bank guarantee providing unconditional payment obligation upon demand, commonly used in commercial and international trade transactions.

Download

Letter Of Credit And Standby Letter Of Credit

A Swiss law-governed banking instrument providing payment security in international trade, subject to UCP 600/ISP98 rules and FINMA regulations.

Download

Bank Guarantee Bond

A Swiss law-governed financial instrument where a bank guarantees payment to a beneficiary upon specified conditions or default of the principal.

Download

Advance Payment Guarantee Letter

A Swiss law-governed bank guarantee securing advance payments made by a buyer to a seller, providing financial protection if contractual obligations are not met.

Download

Revolving Bank Guarantee

A Swiss law-governed bank guarantee that automatically reinstates after claims, providing continuous financial security up to a specified maximum amount.

Download

Retention Bank Guarantee

A Swiss law-governed bank guarantee that replaces cash retention in construction contracts, providing security to the project owner while maintaining contractor liquidity.

Download

Payment Guarantee Letter To Supplier

A Swiss law-governed financial instrument where a guarantor promises to pay a supplier if the buyer defaults on their payment obligations.

Download

Performance Letter Of Guarantee

A Swiss law-governed bank guarantee securing performance obligations of a contractor/supplier, payable upon first demand subject to specified conditions.

Download

Back To Back Bank Guarantee

Swiss law-governed agreement establishing a counter-guarantee arrangement between banks to support a primary bank guarantee.

Download

Performance Bank Guarantee

A Swiss law-governed bank guarantee securing the performance obligations of a principal party to a beneficiary, providing financial security for contractual commitments.

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