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Hard Money Lending Contract for Switzerland

Hard Money Lending Contract Template for Switzerland

A Hard Money Lending Contract under Swiss law is a specialized financing agreement where a lender provides short-term, asset-backed financing, typically secured by real estate or other valuable assets. The document, governed by Swiss law including the Code of Obligations and relevant banking regulations, outlines the terms of the loan, including higher-than-conventional interest rates, strict security requirements, and specific enforcement provisions. It includes detailed collateral specifications, repayment terms, and risk disclosures, reflecting the unique nature of hard money lending while ensuring compliance with Swiss lending and security interest regulations.

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Hard Money Lending Contract

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What is a Hard Money Lending Contract?

The Hard Money Lending Contract is essential for situations requiring rapid, asset-backed financing outside traditional banking channels in Switzerland. This document type is commonly used in real estate transactions, development projects, or business situations where conventional financing is not suitable or available. The contract must comply with Swiss federal and cantonal regulations, including the Swiss Code of Obligations and relevant banking laws. It typically includes comprehensive security arrangements, detailed collateral specifications, strict repayment terms, and higher interest rates compared to traditional loans. The document is structured to protect the lender's interests through robust security mechanisms while ensuring compliance with Swiss lending regulations and providing clear enforcement pathways in case of default.

What sections should be included in a Hard Money Lending Contract?

1. Parties: Identification of the lender and borrower with full legal names, addresses, and registration details if applicable

2. Background: Context of the loan arrangement, purpose, and brief description of the security property/asset

3. Definitions: Key terms used throughout the agreement, including technical and financial terminology

4. Loan Amount and Purpose: Specification of the loan amount, currency, and permitted use of funds

5. Interest Rate and Fees: Details of interest rate, calculation method, fees, and total cost of borrowing

6. Security and Collateral: Description of assets provided as security and terms of the security interest

7. Drawdown Conditions: Prerequisites and conditions for disbursement of the loan

8. Repayment Terms: Schedule of repayments, payment methods, and prepayment provisions

9. Representations and Warranties: Statements of fact and assurances from the borrower

10. Covenants: Ongoing obligations of the borrower during the loan term

11. Events of Default: Circumstances constituting default and consequences thereof

12. Enforcement Rights: Lender's rights and remedies in case of default

13. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes

14. Notices: Communication methods and contact details for formal notices

15. Execution: Signature blocks and execution requirements

What sections are optional to include in a Hard Money Lending Contract?

1. Insurance Requirements: Detailed insurance obligations for the security property - include when the collateral requires specific insurance coverage

2. Guarantees: Terms of any personal or corporate guarantees - include when third-party guarantees are part of the security package

3. Tax Provisions: Allocation of tax responsibilities - include when cross-border elements exist or specific tax implications need addressing

4. Assignment and Transfer: Rights to assign or transfer the loan - include when either party may need to transfer rights

5. Multiple Lenders: Provisions for syndication or multiple lenders - include when there is more than one lender

6. Property Management: Requirements for maintaining secured property - include when the collateral is real estate

7. Consumer Protection Provisions: Additional protections required by Swiss consumer credit law - include when lending to individuals

What schedules should be included in a Hard Money Lending Contract?

1. Schedule 1 - Property Details: Detailed description and documentation of the security property

2. Schedule 2 - Repayment Schedule: Detailed amortization table with payment dates and amounts

3. Schedule 3 - Drawdown Requirements: Checklist of conditions precedent and required documentation

4. Schedule 4 - Form of Drawdown Notice: Template for requesting loan disbursement

5. Schedule 5 - Security Documents: Forms of security agreements and filings

6. Appendix A - Property Valuation: Independent valuation report of the security property

7. Appendix B - Insurance Certificates: Copies of required insurance policies

8. Appendix C - Corporate Authorizations: Corporate resolutions and authorizations if borrower is a company

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Switzerland

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions

















































Clauses







































Relevant Industries

Real Estate

Private Lending

Commercial Property Development

Construction

Property Investment

Alternative Finance

Business Finance

Asset-Based Lending

Property Management

Financial Services

Relevant Teams

Legal

Finance

Risk Management

Compliance

Real Estate

Credit Analysis

Investment

Asset Management

Operations

Due Diligence

Relevant Roles

Chief Financial Officer

Real Estate Finance Manager

Lending Officer

Credit Risk Manager

Property Development Manager

Investment Manager

Legal Counsel

Compliance Officer

Asset Manager

Portfolio Manager

Private Banker

Real Estate Investment Officer

Loan Officer

Financial Controller

Risk Assessment Manager

Industries







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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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