Swiss Banking Act

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Swiss Federal Act on Banks and Savings Banks, — Bundesgesetz über die Banken und Sparkassen to its freunden — which gives rise to the excellent Swiss Bankruptcy Language that enthusiastic lawyers can add to Section 5(a)(vii) of their ISDA Master Agreements. Oh go on, it goes like this:

in respect of a Swiss bank or a Swiss branch of a bank licensed under the Swiss Federal Act on Banks and Savings Banks (the “Swiss Banking Act”), it has imposed on it or with respect to it, by the Swiss Financial Market Supervisory Authority:

(A) protective measures (Schutzmassnahmen/mesures protectrices) under Article 26(1)(e), (f), (g) or (h) or other protective measures establishing a general payment moratoriumor ordering the termination of its business operations;

(B) restructuring procedures (Sanierungsverfahren/procédure d’assainissement) under Articles 28-32 of the Swiss Banking Act or

(C) an order for liquidation and the withdrawal of its banking license under the Swiss Banking Act.

Also involved in the Swiss stay language. Which goes like this:

Swiss Stay: For the purposes of the Banking Insolvency Ordinance published by the Swiss Financial Market Supervisory Authority (FINMA), you agree to “accept” (anerkennt) any “suspension of the termination of agreements” (Aufschub der Beendigung von Verträgen) imposed by FINMA under Article 30a of the “Banking Act” (Bundesgesetz über die Banken und Sparkassen; SR 952.0) of Switzerland with respect to this Agreement.