All Countries
Banking
Parent Guarantee Agreement

Parent Guarantee Agreement Template for Switzerland

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Parent Guarantee Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Parent Guarantee Agreement

"I need a Parent Guarantee Agreement under Swiss law where our German parent company guarantees a CHF 50 million credit facility that our Swiss subsidiary is obtaining from Credit Suisse, with the guarantee to become effective by March 2025."

Celebrated by
Collaborations with
Investors
Document background
The Parent Guarantee Agreement is a fundamental instrument in corporate finance and business relationships, particularly useful when a subsidiary requires additional financial backing or creditworthiness. Under Swiss law, this agreement enables a parent company to provide a legally binding commitment to fulfill its subsidiary's obligations in case of default or non-performance. The document must comply with strict Swiss legal requirements, including written form requirements under the Swiss Code of Obligations and potential limitations under corporate law for upstream guarantees. It typically includes detailed provisions on the scope of guaranteed obligations, enforcement mechanisms, and release conditions. This type of guarantee is commonly used in project finance, loan agreements, commercial contracts, and other significant business transactions where the beneficiary requires additional security.
Suggested Sections

1. Parties: Identification of the Guarantor (Parent Company), the Beneficiary, and reference to the Principal Debtor (Subsidiary)

2. Background: Context of the guarantee, relationship between parties, and reference to the underlying obligations being guaranteed

3. Definitions: Key terms used throughout the agreement, including 'Guaranteed Obligations', 'Enforcement Event', and 'Maximum Liability'

4. Guarantee: Core guarantee provisions, including scope, nature (whether primary or secondary obligation), and maximum amount

5. Representations and Warranties: Guarantor's confirmations regarding capacity, authority, and financial condition

6. Payment Mechanics: Process and timing for payments under the guarantee, including currency and payment instructions

7. Tax Gross-up: Provisions ensuring payments are made free of tax deductions or with appropriate gross-up

8. Continuing Security: Confirmation that the guarantee is continuing and covers all defined obligations

9. Enforcement: Circumstances and process for enforcing the guarantee, including any notice requirements

10. Discharge and Release: Conditions for and process of releasing the guarantor from obligations

11. Governing Law and Jurisdiction: Confirmation of Swiss law governance and jurisdiction for disputes

Optional Sections

1. Currency Indemnity: Required when guaranteed obligations are in multiple currencies or different from the guarantee currency

2. Financial Covenants: Include when specific financial metrics need to be maintained by the guarantor

3. Information Undertakings: Add when regular financial or operational information must be provided to the beneficiary

4. Change of Control: Include when guarantee needs to address consequences of ownership changes in the guarantor

5. Costs and Expenses: Include when specific cost allocation needs to be addressed beyond statutory provisions

6. Assignment and Transfer: Required when rights under the guarantee need to be transferable

7. Multiple Guarantors: Include when more than one entity is providing the guarantee

8. Limitation Language: Required when upstream guarantees need specific limitation under Swiss corporate law

Suggested Schedules

1. Guaranteed Obligations: Detailed description or copy of the underlying obligations being guaranteed

2. Form of Demand: Template for making a valid demand under the guarantee

3. Corporate Authorizations: Copies of relevant board resolutions and power of attorney

4. Payment Details: Bank account and payment routing information

5. Guarantor Group Structure: Corporate structure chart showing relationship between guarantor and principal debtor

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 | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Banking and Financial Services

Manufacturing

Construction and Infrastructure

Energy and Utilities

Technology and Software

Telecommunications

Real Estate

Retail and Consumer Goods

Healthcare

Transportation and Logistics

Mining and Natural Resources

Professional Services

Relevant Teams

Legal

Finance

Treasury

Risk Management

Corporate Secretariat

Compliance

Corporate Development

Executive Leadership

Commercial Operations

Business Development

Relevant Roles

Chief Financial Officer

General Counsel

Legal Director

Finance Director

Corporate Secretary

Treasury Manager

Risk Manager

Commercial Director

Chief Executive Officer

Head of Legal

Senior Legal Counsel

Financial Controller

Corporate Finance Manager

Compliance Officer

Business Development Director

Industries
Swiss Code of Obligations (OR/CO): Primary source of Swiss contract law, particularly Articles 492-512 governing guarantees (including formal requirements, scope, and termination of guarantees)
Swiss Civil Code (ZGB/CC): Contains fundamental principles of Swiss private law, including good faith principles and legal capacity requirements that apply to guarantee agreements
Swiss Federal Act on Banks and Savings Banks: Relevant if the guarantee involves banking institutions or financial obligations, particularly regarding regulatory requirements and limitations
Swiss Debt Enforcement and Bankruptcy Act (SchKG): Important for understanding the enforcement of guarantees and their treatment in case of insolvency of either the guarantor or the principal debtor
Swiss Federal Act on Private International Law (IPRG): Applicable when the guarantee agreement has international aspects, determining jurisdiction and applicable law
Swiss Federal Act on Merger, Demerger, Transformation and Transfer of Assets (Merger Act): Relevant when the parent company undergoes corporate restructuring that might affect the guarantee
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Guarantor Promissory Note

A Swiss law-governed financial instrument combining a promissory note with a guarantee commitment, providing secured payment obligations under the Swiss Code of Obligations.

find out more

Parent Guarantee Agreement

A Swiss law-governed agreement where a parent company guarantees its subsidiary's obligations to a third party, subject to Swiss Code of Obligations requirements.

find out more

Guaranty Of Lease Agreement

A Swiss law-governed agreement where a guarantor secures a tenant's lease obligations, subject to Swiss Code of Obligations requirements and including mandatory guarantor protections.

find out more

Rental Guarantee Form

A Swiss-law governed document establishing a security deposit arrangement between tenant, landlord, and financial institution, typically covering up to three months' rent.

find out more

Performance Guarantee Agreement

A Swiss law-governed agreement where a guarantor commits to compensate a beneficiary if a principal fails to meet specified performance obligations.

find out more

Personal Guarantee Rental Agreement

A Swiss law agreement where a guarantor secures a tenant's rental obligations, subject to Swiss Code of Obligations requirements.

find out more

Personal Guarantee Form

A Swiss law-governed guarantee agreement where a guarantor assumes responsibility for another party's obligations, requiring notarization for personal guarantees over CHF 2,000.

find out more

Guaranty Agreement

A Swiss law agreement where a Guarantor secures the obligations of a Principal Debtor to a Beneficiary, governed by the Swiss Code of Obligations.

find out more

Guarantee Rental Agreement

A Swiss law-governed agreement establishing rental guarantee terms between guarantor, landlord, and tenant, typically securing up to three months' rent.

find out more

Guarantee And Collateral Agreement

Swiss law-governed agreement establishing guarantee obligations and security interests over collateral to secure specified obligations.

find out more

Corporate Guarantee Agreement

A Swiss law agreement where a corporate entity guarantees the obligations of another party, subject to Swiss Code of Obligations requirements.

find out more

Authorised Guarantee Agreement

A Swiss law agreement where a guarantor secures the obligations of a principal debtor to a creditor, subject to Swiss Code of Obligations requirements.

find out more

Guarantor Tenancy Agreement

A Swiss law-governed agreement where a guarantor assumes financial responsibility for a tenant's obligations under a lease, subject to Swiss Code of Obligations requirements.

find out more

Rent Guarantee Agreement

A Swiss law-governed agreement where a guarantor (usually a bank) provides security to a landlord for a tenant's rental obligations, typically covering three months' rent.

find out more

Personal Guarantee Promissory Note

A Swiss law-governed financial instrument combining a promissory note with a personal guarantee, providing secured payment obligations under the Swiss Code of Obligations.

find out more

Guarantor Lease Agreement

A Swiss law agreement where a guarantor assumes responsibility for a tenant's lease obligations, subject to Swiss legal requirements and protections.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

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

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.

Read our Privacy Policy.