Account Pledge Agreement Template for Switzerland

The Account Pledge Agreement is a crucial security document used in Swiss financing transactions where bank accounts serve as collateral. It is typically employed in corporate lending, project finance, and other secured financing arrangements where a lender requires security over the borrower's bank accounts. The agreement must comply with Swiss legal requirements for creating valid security interests, particularly under the Swiss Civil Code and Code of Obligations. It details the accounts being pledged, the secured obligations, operating mechanics, and enforcement procedures. The document is essential for establishing the pledgee's security interest and ensures that the security package meets Swiss law requirements for enforceability. The agreement includes specific provisions required under Swiss law for perfection of the security interest and notice requirements to account banks.

1. Parties: Identification of the Pledgor, Pledgee, and Account Bank

2. Background: Context of the pledge agreement, including reference to any underlying credit or facility agreement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. Creation of Pledge: Legal provisions establishing the pledge over the accounts

5. Scope of Security: Description of pledged accounts and all rights, interests, and proceeds covered

6. Perfection and Further Assurances: Requirements for perfecting the pledge and obligations to execute additional documents

7. Pledgor's Representations and Warranties: Statements about account ownership, authority to pledge, and absence of other encumbrances

8. Pledgor's Obligations: Ongoing obligations regarding the pledged accounts, including maintenance and restrictions

9. Rights to Accounts: Terms governing access to and operation of the accounts before and after enforcement

10. Enforcement: Circumstances and procedures for enforcing the pledge

11. Application of Proceeds: Order of applying any proceeds from enforcement

12. Release of Security: Conditions and process for releasing the pledge

13. Miscellaneous: Standard provisions including notices, amendments, assignments, and severability

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