Revolving Credit Promissory Note Template for Switzerland

The Revolving Credit Promissory Note is commonly used in Swiss commercial financing transactions where borrowers need flexible access to working capital while providing lenders with a negotiable instrument as evidence of debt. This document type is particularly useful for businesses with cyclical cash flows or varying capital needs, as it allows for multiple drawdowns and repayments within an overall facility limit. The structure must comply with Articles 984-1186 of the Swiss Code of Obligations regarding negotiable instruments, while also incorporating modern banking practices and facility terms. It combines the security and transferability of a promissory note with the flexibility of a revolving credit facility, making it a valuable tool for both secured and unsecured lending arrangements in the Swiss market.

1. Parties: Identification of the issuer (borrower) and the initial holder (lender) of the promissory note

2. Background: Context of the revolving credit facility and purpose of the promissory note

3. Definitions: Key terms used in the document, including credit facility terms, interest calculation methods, and banking terms

4. Promise to Pay: Unconditional promise to pay the principal amount, including revolving facility mechanics

5. Facility Terms: Terms of the revolving credit facility, including facility limit, availability period, and purpose

6. Interest Provisions: Interest rate, calculation method, payment dates, and default interest

7. Drawdown and Repayment: Mechanics for requesting drawdowns, making repayments, and re-borrowing

8. Representations and Warranties: Standard representations regarding capacity, authority, and enforceability

9. Events of Default: Circumstances triggering acceleration or termination of the facility

10. Transferability: Terms governing transfer and assignment of the promissory note

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