Ƶ

Loan Participation Agreement for Switzerland

Loan Participation Agreement Template for Switzerland

A Loan Participation Agreement governed by Swiss law is a sophisticated financial contract that establishes the terms under which one financial institution (the participant) acquires an economic interest in a loan or commitment made by another financial institution (the original lender), without creating a direct contractual relationship with the borrower. The agreement, regulated under Swiss banking and financial market laws, details the mechanics of participation, including payment flows, rights and obligations of parties, risk allocation, and administrative procedures. It incorporates specific Swiss legal requirements and banking regulations while providing a framework for the transfer of economic interest in loan assets.

Your data doesn't train Genie's AI

You keep IP ownership of your information

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

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Loan Participation Agreement

Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a Loan Participation Agreement?

The Loan Participation Agreement is a critical document in the Swiss banking and financial services sector, used when a financial institution wishes to acquire an economic interest in a loan without becoming a direct lender of record. This arrangement is particularly common in situations involving syndicated loans, risk sharing, or regulatory capital management. The agreement, governed by Swiss law, must comply with Swiss banking regulations, financial market supervision requirements, and anti-money laundering provisions. It typically includes detailed provisions on payment mechanics, information rights, confidentiality obligations, and regulatory compliance measures. The document is essential for financial institutions operating in Switzerland's sophisticated banking market and needs to address both Swiss domestic requirements and international banking standards.

What sections should be included in a Loan Participation Agreement?

1. Parties: Identification of the original lender and participant(s)

2. Background: Context of the underlying loan and participation arrangement

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Participation: Core terms of the participation, including size, price, and effective date

5. Payments and Distributions: Mechanics of how payments are calculated and distributed between parties

6. Rights and Obligations of the Parties: Detailed responsibilities of both original lender and participant

7. Representations and Warranties: Standard representations by both parties regarding capacity, authority, and compliance

8. Information Rights: Participant's rights to receive information about the underlying loan

9. Administration: Procedures for communications, notifications, and decision-making

10. Tax Provisions: Treatment of taxes, withholding, and related obligations

11. Costs and Expenses: Allocation of costs and expenses between parties

12. Confidentiality: Obligations regarding confidential information

13. Term and Termination: Duration of the agreement and termination events

14. Governing Law and Jurisdiction: Choice of Swiss law and jurisdiction provisions

15. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, etc.

What sections are optional to include in a Loan Participation Agreement?

1. Multiple Participant Provisions: Required when there are multiple participants to address voting rights and decision-making procedures

2. Regulatory Compliance: Additional provisions required for regulated entities or specific regulatory requirements

3. Security Arrangements: Required when the participation involves secured loans and treatment of collateral

4. Risk Participation: Specific provisions for risk participation arrangements as opposed to funded participations

5. Sub-Participation: Provisions governing the ability to create sub-participations

6. Currency Provisions: Required when the participation involves multiple currencies

7. Elevation Rights: Provisions regarding the right to elevate the participation to a direct assignment

What schedules should be included in a Loan Participation Agreement?

1. Schedule 1 - Underlying Loan Details: Details of the underlying loan agreement including key terms and conditions

2. Schedule 2 - Participation Details: Specific details of the participation including amount, price, and any specific terms

3. Schedule 3 - Form of Transfer Certificate: Standard form for documenting transfers of participation interests

4. Schedule 4 - Administrative Details: Contact details, account information, and payment instructions

5. Schedule 5 - Form of Confidentiality Undertaking: Standard form confidentiality agreement for potential transferees

6. Appendix A - Calculation Principles: Detailed methodology for calculating payments and distributions

7. Appendix B - Reporting Requirements: Ƶ and requirements for regular reporting between parties

Authors

Alex Denne

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

Jurisdiction

Switzerland

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
































































Clauses





































Relevant Industries

Banking

Financial Services

Investment Management

Corporate Lending

Private Equity

Asset Management

Insurance

Investment Banking

Commercial Banking

Financial Technology

Relevant Teams

Legal

Credit Risk

Compliance

Treasury

Syndications

Portfolio Management

Transaction Management

Operations

Finance

Risk Management

Documentation

Banking Operations

Investment

Structured Finance

Relevant Roles

Legal Counsel

Relationship Manager

Credit Risk Manager

Compliance Officer

Treasury Manager

Syndications Manager

Portfolio Manager

Transaction Manager

Chief Credit Officer

Financial Controller

Risk Officer

Documentation Specialist

Banking Operations Manager

Investment Manager

Structured Finance Director

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,  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

Personal Loan Contract Between Family

Swiss-law governed agreement formalizing loan arrangements between family members, including terms for amount, repayment, and interest.

find out more

Legally Binding Loan Agreement

Swiss law-governed loan agreement establishing terms and conditions for lending arrangements, including loan amount, interest, repayment terms, and party obligations.

find out more

Simple Shareholder Loan Agreement

A Swiss-law governed agreement documenting the terms of a loan from a shareholder to their company, including key commercial terms and compliance requirements.

find out more

Employer Loan To Employee Agreement

A Swiss law-governed agreement establishing terms for an employer-provided loan to an employee, including loan amount, repayment terms, and employment-related provisions.

find out more

Unsecured Personal Loan Agreement

Swiss law-governed agreement for unsecured personal lending, compliant with Swiss Code of Obligations and Consumer Credit Act requirements.

find out more

Term Loan Facility Agreement

Swiss law-governed agreement establishing terms and conditions for a term loan facility, including loan amount, interest, repayment, and security arrangements.

find out more

Personal Loan Letter

A Swiss-law governed Personal Loan Letter documenting terms and conditions of a personal loan, including amount, interest, and repayment terms.

find out more

Family Member Promissory Note

A Swiss-law governed promissory note documenting loan arrangements between family members, incorporating specific provisions for familial financial arrangements and Swiss legal requirements.

find out more

Loan Agreement Between Family Members

Swiss law-governed loan agreement template for structured lending arrangements between family members, incorporating key Swiss legal requirements and family law considerations.

find out more

Facility Loan Agreement

Swiss law-governed agreement establishing terms and conditions for providing loan facilities, including key lending terms, security arrangements, and regulatory compliance requirements.

find out more

Overagreement

A Swiss law framework agreement establishing master terms for ongoing business relationships and future transactions.

find out more

Loan Note Register

A Swiss law-governed register documenting the ownership and transfer of loan notes, serving as the official record under Swiss securities regulations.

find out more

Litigation Financing Agreement

Swiss law-governed agreement establishing terms for third-party litigation funding, including funding scope, returns, and control mechanisms.

find out more

Inter Corporate Loan Agreement

A Swiss law-governed agreement establishing terms for corporate-to-corporate lending, structured under Swiss Code of Obligations and financial regulations.

find out more

House Loan Contract

A Swiss law-governed agreement between a lender and borrower for residential property financing, detailing loan terms, security arrangements, and obligations under Swiss banking regulations.

find out more

Money Lending Form

A Swiss-law governed agreement establishing terms and conditions for lending money, compliant with Swiss banking and financial regulations.

find out more

Subordinated Loan Agreement

A Swiss law financing agreement documenting a subordinated loan arrangement where the lender's claims rank behind senior creditors, incorporating specific Swiss legal and regulatory requirements.

find out more

Promise Note

A Swiss law-governed formal instrument containing an unconditional promise to pay a specified sum of money to a designated party at a future date.

find out more

Interest Loan Agreement

A Swiss law-governed agreement establishing terms for an interest-bearing loan, including loan amount, interest rates, and repayment conditions.

find out more

Personal Loan Between Friends Contract

A Swiss law-governed agreement formalizing a personal loan arrangement between friends, including loan terms, repayment conditions, and parties' obligations.

find out more

Contract For Land Purchase

Swiss law-governed agreement for land transfer, requiring notarization and land registry registration, detailing property specifications, price, and transfer conditions.

find out more

Loan Participation Agreement

Swiss law-governed agreement establishing terms for a financial institution's participation in a loan made by another lender, including payment mechanics and risk allocation.

find out more

Investment Loan Contract

A Swiss law-governed agreement establishing terms for providing and managing investment-focused loan facilities, incorporating key Swiss regulatory requirements and investment criteria.

find out more

Facility Agreement

A Swiss law-governed agreement establishing terms and conditions for providing financial facilities, incorporating Swiss legal requirements and international lending practices.

find out more

Small Business Loan Contract

Swiss law-governed loan agreement for small business financing, compliant with Swiss banking regulations and commercial law.

find out more

Simple Loan Term Sheet

A preliminary document under Swiss law outlining key commercial and legal terms of a proposed loan arrangement, serving as the foundation for a detailed loan agreement.

find out more

Loan Forgiveness Agreement

A Swiss law-governed agreement documenting the release of a borrower from their obligation to repay all or part of an existing loan, including associated terms and conditions.

find out more

Loan And Mortgage Agreement

A Swiss law-governed agreement combining loan provisions with mortgage security arrangements, establishing terms for lending and property security in Switzerland.

find out more

Loan Agreement Term Sheet

A Swiss law-governed term sheet outlining key commercial and legal terms for a proposed loan facility, serving as the foundation for detailed loan documentation.

find out more

Line Of Credit Contract

A Swiss law-governed agreement establishing a flexible credit facility between a lender and borrower, setting out terms for accessing and repaying credit up to a predetermined limit.

find out more

International Loan Agreement

Swiss law-governed agreement establishing terms for international lending arrangements, including loan terms, security, and cross-border considerations.

find out more

Equipment Loan Agreement Form

Swiss law-governed agreement establishing terms for temporary equipment loans, including maintenance, liability, and return conditions.

find out more

Short Term Loan Agreement

Swiss law-governed agreement establishing terms and conditions for a short-term loan, including loan amount, interest, and repayment provisions.

find out more

Real Estate Mortgage Agreement

A Swiss law-governed agreement establishing a mortgage over real estate property, detailing loan terms and security arrangements under the Swiss mortgage certificate (Schuldbrief) system.

find out more

Real Estate Loan Agreement

A Swiss law-governed agreement setting out terms and conditions for real estate-secured financing, including loan terms, security arrangements, and compliance with Swiss banking and property regulations.

find out more

Mezzanine Loan Agreement

A Swiss law-governed agreement for subordinated debt financing with equity-like features, establishing terms for mezzanine lending including security, subordination, and potential equity conversion rights.

find out more

Master Loan Agreement

Swiss law-governed framework agreement establishing terms and conditions for ongoing lending relationships between financial institutions and borrowers.

find out more

Margin Loan Agreement

A Swiss law agreement governing margin lending facilities secured by financial instruments, compliant with Swiss financial services regulations and banking requirements.

find out more

Loan Note Agreement

A Swiss law-governed agreement documenting terms of loan notes issuance, including interest, repayment, and noteholder rights.

find out more

Loan Guarantee Agreement

A Swiss law-governed agreement where a guarantor secures a borrower's loan obligations, subject to Swiss Code of Obligations requirements.

find out more
See more related templates

ұԾ’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; ұԾ’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

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

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