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Security Agreement Form Template for Switzerland

A Swiss Security Agreement Form is a legally binding document governed by Swiss law that creates and evidences a security interest over specified assets in favor of a secured party. The agreement complies with Swiss Civil Code and Code of Obligations requirements, detailing the terms and conditions under which assets are pledged or assigned as security for obligations. It includes provisions for perfection, maintenance, and enforcement of security interests, incorporating specific Swiss law concepts and requirements. The document addresses various types of collateral including movable assets, receivables, bank accounts, and securities, while ensuring compliance with Swiss financial regulations and security interest laws.

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What is a Security Agreement Form?

The Security Agreement Form under Swiss law is essential for creating enforceable security interests in financing transactions. It is commonly used in both commercial lending and corporate finance scenarios where a lender or creditor requires security over assets as collateral for financial obligations. The document must comply with specific requirements of Swiss law, particularly the Swiss Civil Code and Code of Obligations, regarding the creation, perfection, and enforcement of security interests. It becomes necessary when parties want to establish a legally robust security arrangement over various types of assets, including movable property, receivables, bank accounts, or securities. The agreement's structure and content are designed to meet Swiss regulatory requirements while providing clear mechanisms for enforcement in case of default.

What sections should be included in a Security Agreement Form?

1. Parties: Identification of the secured party (security holder) and the security provider, including full legal names and addresses

2. Background: Context of the security agreement, including reference to any underlying obligations or facility agreements

3. Definitions: Definitions of key terms used throughout the agreement, including specific Swiss law concepts

4. Grant of Security Interest: Express creation and grant of the security interest, specifying the type of security under Swiss law (pledge, assignment, etc.)

5. Secured Obligations: Definition and scope of the obligations being secured

6. Security Assets: Detailed description of the assets subject to the security interest

7. Perfection Requirements: Steps required to perfect the security interest under Swiss law

8. Representations and Warranties: Standard representations regarding ownership, authority, and absence of encumbrances

9. Security Provider Obligations: Ongoing obligations of the security provider regarding the secured assets

10. Enforcement: Rights and procedures for enforcing the security interest under Swiss law

11. Further Assurance: Obligation to execute additional documents or take actions to maintain security

12. Governing Law and Jurisdiction: Confirmation of Swiss law governance and jurisdiction of Swiss courts

What sections are optional to include in a Security Agreement Form?

1. Financial Collateral Arrangements: Required when the security involves financial instruments or cash accounts

2. Special Provisions for Intermediated Securities: Needed when security is taken over securities held with intermediaries

3. Bank Account Security: Specific provisions for security over bank accounts

4. Intellectual Property Rights: Required when security includes IP rights

5. Insurance: Provisions regarding insurance of secured assets when applicable

6. Power of Attorney: Optional authorization for secured party to perfect or enforce security

7. Tax Provisions: Special tax considerations and allocations when relevant

8. Priority Arrangements: Required when there are multiple security interests or intercreditor arrangements

What schedules should be included in a Security Agreement Form?

1. Schedule 1 - Security Assets: Detailed list and description of all assets subject to the security interest

2. Schedule 2 - Perfection Requirements: Specific actions required for each type of asset to perfect the security

3. Schedule 3 - Bank Accounts: List of relevant bank accounts and their details

4. Schedule 4 - Forms of Notices: Template notices required for perfection or enforcement

5. Schedule 5 - Existing Security Interests: List of permitted existing security interests if any

6. Appendix A - Board Resolutions: Corporate authorizations for granting security

7. Appendix B - Power of Attorney Form: Form of power of attorney if required

8. Appendix C - Registration Forms: Forms required for registering security interests with relevant authorities

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

Jurisdiction

Switzerland

Document Type

Agreement Contract

Cost

Free to use

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