Intercompany Credit Agreement Template for Switzerland

The Intercompany Credit Agreement is a crucial document used to formalize lending arrangements between affiliated companies under Swiss law. It is typically employed when a parent company or cash-rich entity within a corporate group provides financing to other group entities for various purposes such as working capital, expansion, or project financing. The agreement must comply with Swiss regulatory requirements, including the Swiss Code of Obligations, banking regulations, and tax laws. It contains detailed provisions on loan terms, interest calculations, repayment schedules, and various protective clauses while reflecting the special nature of related-party transactions. The document is particularly important for demonstrating arm's length dealings, ensuring proper corporate governance, and maintaining clear financial records for audit and regulatory purposes.

1. Parties: Identification of the lender and borrower entities, including registration details and addresses

2. Background: Context of the intercompany lending arrangement and relationship between the parties

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

4. The Facility: Core terms of the credit facility including amount, purpose, and availability period

5. Interest: Interest rate, calculation method, payment dates, and default interest provisions

6. Repayment: Terms for repayment of the loan, including schedule and prepayment provisions

7. Payments: Payment mechanics, currency, and business day conventions

8. Representations: Standard representations by the borrower regarding its status and capacity

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

10. General Undertakings: General covenants and obligations of the borrower

11. Events of Default: Circumstances constituting default and consequences

12. Changes to Parties: Provisions regarding assignment and transfer rights

13. Administration: Administrative provisions including notices and calculations

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