Loan Market Association Credit Facility Agreement

In a syndicated transaction containing a letter of credit, you should consider including the „non-acceptable L/C Lender” provisions if you are the issuer bank or act for it. The issuing bank is based on the lenders` compensation for the obligations they have contracted under all the L/Cs it has issued. These provisions allow the issuing bank to require additional protection (including cash guarantees) when a lender becomes an unacceptable L/C lender (for example. B because its rating falls below the required level). As a result, there have recently been a number of changes to the AU agreement, which are by no means financially specific, but do not appear in investment degree agreements. Therefore, if you are preparing or re-checking a facility agreement on the basis of the LMA-Investment-Grade agreements, you should accept the following terms of the LF agreement. Some terms that are considered to use these materials (the term includes when context permits, text, content, tables with macros and electronic interfaces, and their underlying assumptions, transformations, formulas, algorithms, calculations and other financial techniques) are made available to members of the Credit Market Association in accordance with the statutes of the credit market association (a copy of which is available here) to facilitate the documentation of transactions in the credit markets. None of the Loan Market Association, Allen-Overy or Clifford Chance assumes any responsibility for any use of these materials or any loss, damage or liability resulting from such use. None of the Loan Market Association, Allen-Overy or Clifford Chance has considered the laws of a jurisdiction that may apply to any of the parties to an agreement using these materials and its purpose. Members should therefore consider all relevant legal, accounting and regulatory issues before using these materials or entering into a transaction in connection with these materials and, if necessary, consulting with their professional advisors. The recommended loan agreements for borrowers with an investment degree, the Investment Degree Agreements (IGA), were the first primary documents established by the Loan Market Association (LMA) and are probably the most commonly used. In response to members` requests to address the problems related to kyC, the LMA has recently done significant work under the MRA.

The result was the publication of new JMLSG guidelines, the appointment of JMLSG to the Board of Directors and the strengthening of dialogue with the AML`s supervisory authorities. In 2019, the LMA has obtained approval from the Financial Ministry for LMA revisions for JMLSG Guidance Sector 17. The revised guidelines include a clear description of primary and secondary syndicated credit markets, an assessment of the risks associated with the review of money laundering and terrorist financing, and the different types of relationships between the parties to a syndicated credit transaction and where this results in a direct relationship with clients between these parties.