A detailed study of the terms of international loan documentation with comprehensive explanations of the purpose of the provisions and of areas which may require negotiation and with an emphasis on the wording of the Loan Market Association documents. The book provides a highly practical and comprehensive resource for bankers and lawyers, at all levels of experience, involved in international lending.
Author(s): Sue Wright
Series: Finance and Capital Markets
Publisher: Palgrave Macmillan
Year: 2005
Language: English
Pages: 250
Contents......Page 8
List of Statutes, Regulations, Directives and Conventions......Page 12
List of Cases......Page 15
Acknowledgements......Page 17
General Introduction......Page 18
Section 1: Principal Types of Loans......Page 20
Section 2: Loan Agreement Overview......Page 24
Section 3: LIBOR-Based Lending......Page 30
Section 4: Scope of the Loan Agreement......Page 34
Section 5: Asset and Project Finance......Page 41
Section 6: Quasi Security and Financial Indebtedness......Page 45
PART I Administrative Provisions......Page 50
Clause 1: Definitions and Interpretation—Section 1—An Introduction......Page 52
Clause 1: Definitions and Interpretation—Section 2—The LMA Definitions......Page 55
Clause 2: The Facility......Page 73
Clause 3: Purpose......Page 76
Clause 4: Conditions of Utilization......Page 77
Clause 5: Utilization......Page 84
Clause 6: Optional Currencies......Page 87
Clause 8: Prepayment and Cancellation......Page 91
Clause 9: Calculation of Interest......Page 97
Clause 10: Interest Periods......Page 100
Clause 11: Changes to Calculation of Interest......Page 104
Clause 12: Fees......Page 108
Clause 13: Tax Gross-up and Indemnities—Introduction......Page 110
Clause 13: Tax Gross-up and Indemnities......Page 111
Clause 14: Increased Costs......Page 117
Clause 15: Indemnities......Page 121
Clause 17: Costs and Expenses......Page 122
PART II Guarantee, Representations, Undertakings, and Events of Default......Page 124
Clause 18: Guarantee and Indemnity......Page 126
Clause 19: Representations—Section 1—An Introduction......Page 134
Clause 19: Representations—Section 2—The LMA Term Loan Representations......Page 141
Clause 20: Information Undertakings......Page 154
Clause 21: Financial Covenants......Page 158
Clause 22: General Undertakings—Section 1—The LMA Undertakings......Page 164
Clause 22: General Undertakings—Section 2—Other Common Undertakings......Page 175
Clause 23: Events of Default—Section 1—Introduction......Page 182
Clause 23: Events of Default—Section 2—The LMA Events of Default......Page 185
PART III Boilerplate and schedules......Page 202
Clause 24: Changes to Lenders—Section 1—Methods of Transfer......Page 204
Clause 24: Changes to Lenders—Section 2—Transfers of Secured Loan......Page 213
Clause 24: Changes to Lenders—Section 3—The LMA Term Loan......Page 218
Clause 25: Changes to the Obligors......Page 223
Clause 26: Role of the Agent and the Arranger......Page 227
Clause 28: Sharing among Finance Parties......Page 234
Clause 29: Payment Mechanics......Page 238
Clause 31: Notices......Page 241
Clause 32: Calculations and Certificates......Page 242
Clause 34: Remedies and Waivers......Page 244
Clause 35: Amendments and Waivers......Page 245
Clause 36: Counterparts......Page 246
Clause 38: Enforcement......Page 247
Schedule 2: Conditions Precedent......Page 250
Schedule 4: Mandatory Cost Formula......Page 258
Schedule 5: Form of Transfer Certificate......Page 259
Schedule 6: Accession Letter......Page 260
Schedule 7: Form of Resignation Letter......Page 261
Schedule 8: Form of Compliance Certificate......Page 262
Schedule 12: Legal Opinions......Page 263
Appendix 1 Some English Law Concepts......Page 276
Section 1: Some Basic Concepts......Page 278
Section 2: Security......Page 288
Section 3: Guarantees......Page 298
A......Page 303
B......Page 304
C......Page 306
D......Page 308
E......Page 310
F......Page 311
I......Page 313
J......Page 314
L......Page 315
N......Page 316
P......Page 317
R......Page 319
S......Page 320
T......Page 322
W......Page 323
Y......Page 324
Bibliography......Page 325
C......Page 327
F......Page 328
J......Page 329
L......Page 330
P......Page 331
S......Page 332
Y......Page 333
