Monthly Highlights: December 2016

Monthly Highlights: December 2016

Welcome to this month’s highlights from the Lexis®PSL Banking & Finance team which cover the key news updates from December 2016.

Lending

LMA publishes guidance on amendments to loan agreements

The Loan Market Association (LMA) has published guidance providing recommendations for best practice when dealing with amendments to loan agreements. These amendments may be necessary during the term of the loan due to changes in the status of the relevant parties, regulatory changes or market variations, each of which may result in the need to review the terms of the loan documentation.

The LMA guidance sets out the best practice steps to take when dealing with any such required amendments and is available to LMA members on the LMA website.

Standards of lending practices for business customers to be phased in

The Lending Standards Board (LSB) has confirmed that standards of lending practices for business customers will be launched in phases, with the first phase due in early 2017. The standards will relate to businesses with a turnover of up to £6.5m and will replace the micro-enterprise provisions of the Lending Code.

The standards will be launched as follows:

  1. phase 1: early 2017—this will apply to the existing Lending Code product scope
  2. phase 2/3: later in 2017—this will extend the standards to cover asset finance and peer-to-peer lending

Security

Unpaid vendor’s lien held to be an equitable charge

In the case of Menelaou v Bank of Cyprus UK Ltd [2016] EWHC 2656 (Ch), the Chancery Division held, further to earlier proceedings in which the defendant bank had successfully counterclaimed for a declaration that it was entitled to be subrogated to an unpaid vendor’s lien over the claimant’s family home, that the bank was entitled to an order for sale of the property. The court held, among other things, that an unpaid vendor’s lien was an equitable charge and that the power

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About the author:

Neeta has been working as a paralegal in Banking and Insolvency for the past 4 and a half years.

She started her legal career at Allen & Overy in 2008 in the midst of the global financial crisis and the collapse of Lehmans where she gained most of her experience.

Neeta also did a short stint in litigation at the Revenue and Customs Prosecutions Office. Neeta graduated with a 2:1 honours degree from University of London, Queen Mary College and went on to obtain a distinction from the College of Law in the Legal Practice Course. She moved to Lexis®PSL in April 2013.