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Inter-Company Loan Agreement

Inter-Company Loan Agreement

PricewaterhouseCoopers AG

Date: September 22, 2017
PV10012
$491.64
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Author's Note

The Simple Loan Agreement is a standard Swiss-law governed short-form, bilateral loan agreement... Read more

The Simple Loan Agreement is a standard Swiss-law governed short-form, bilateral loan agreement between two group companies.  Intra-group funding arrangements may be put in place for a variety of reasons, for example to implement group financing strategy and tax planning, or to support the acquisition of assets.

The Simple Loan Agreement may be used for interest bearing or non-interest bearing loan arrangements with either a fixed or an undefined term.  It includes standard representations and warranties appropriate for use in an intra-group agreement. 

Terms which are configurable to the user’s needs include:

  • Purpose and background;
  • Term and termination;
  • Drawing and repayment;
  • Interest rate and mechanics;
  • Granting of sub-loans;
  • Borrower covenants;
  • Set-off and assignment;
  • Provisions relating to notices; and
  • Jurisdiction and arbitration. 

 

Circumstances of Use

This document is intended solely for intra-group financing purposes and includes (as standard) an event of default if the borrower ceases to be a member of the group.  It is not appropriate for arm’s length (third party) loan agreements. 

The Simple Loan Agreement may be used for cross-border transactions where the parties have agreed to use Swiss law.

Terms of Use

The purchase of this Product is subject to PartnerVine Terms.

You (the registered user through whose account the purchase is made) may:

  • Access the document-generation interview for 90 days from date of purchase;
  • Export and download an unlimited number of copies of the document(s) in Word or pdf format;
  • Share and use the document copies in connection with the circumstances described in this Author’s Note and only for the ordinary business purposes of the group of companies to which you belong.

  

Exclusions and Limitations

The Simple Loan Agreement assumes that the loan is unsecured and not subordinated.  Additional templates for the creation for a secured or subordinated intra-group loan are available for these purposes. 

Other Comments

No warranty or representation is given or made as to the appropriateness or impact of the financing transactions envisaged by this document in the specific circumstances of any given group of companies. No legal or tax advice is provided and nothing in this template or the related user interview shall be deemed to constitute the provision of legal or tax advice in relation to any fact or matter. Where necessary, specialist legal and tax advice and input from group treasury and accounting functions should be sought prior to executing this agreement.



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