Document background
The Loan Termination Agreement is used when parties wish to formally conclude a lending relationship, whether due to full repayment, refinancing, or mutual agreement to terminate. This document is essential in Swiss lending practice as it provides clear evidence of the loan's termination and helps prevent future disputes. The agreement typically follows Swiss legal requirements and includes key information such as the final settlement amount, termination date, and release of securities. It's particularly important in regulated lending environments and complex corporate loans where formal documentation is crucial. The Loan Termination Agreement should be carefully drafted to ensure all outstanding obligations are properly addressed and that the termination complies with Swiss law requirements, particularly those under the Code of Obligations.
