Federal Act
on the Amendment of the Swiss Civil Code
(Part Five: The Code of Obligations)

¹ In all cases, the surety’s li­ab­il­ity is lim­ited to the max­im­um amount in­dic­ated in the surety bond.

² Un­less oth­er­wise agreed, he is li­able up to this lim­it for:

1.

the amount of the prin­cip­al ob­lig­a­tion, in­clud­ing the leg­al con­sequences of any fault or de­fault on the part of the prin­cip­al debt­or, but not for dam­age res­ult­ing from the ex­tinc­tion of the con­tract and any con­trac­tu­al pen­alty un­less this was ex­pressly agreed;

2.

the costs of debt en­force­ment pro­ceed­ings and leg­al ac­tion brought against the prin­cip­al debt­or, provided that the surety was giv­en timely op­por­tun­ity to avoid them by sat­is­fy­ing the cred­it­or, and, where ap­plic­able, for the costs of de­liv­er­ing pledges and trans­fer­ring li­ens;

3.

in­terest at the con­trac­tu­ally agreed rate up to a max­im­um of the in­terest pay­able for the cur­rent year and the pre­vi­ous year or, where ap­plic­able, for the an­nu­al pay­ments due for the cur­rent year and the pre­vi­ous year.

³ Un­less oth­er­wise provided by the con­tract or dic­tated by the cir­cum­stances, the surety is li­able only for the prin­cip­al debt­or’s ob­lig­a­tions arising after the con­tract of surety was con­cluded.