Monthly Highlights: July 2017

Monthly Highlights: July 2017

Welcome to this month’s highlights from the Lexis®PSL Banking & Finance team which cover the key news updates from July 2017.

Brexit

FMLC warns of financial services impact if UK becomes a 'third country' post-Brexit

The Financial Markets Law Committee (FMLC) has published a paper discussing the possibility of market disruption if the UK becomes a 'third country' from the perspective of European legislation, with no treaty provision governing the supply of financial services into the EU single market.

Lending

LMA publishes revised English law investment-grade primary documentation and updates its suite of facility agreements

The Loan Market Association (LMA) has published revised forms of its English law investment-grade primary documentation to account for changes made to its leveraged documentation in November 2016. These changes have been incorporated across the LMA suite of facility agreements and intercreditor agreements. The LMA has also announced other changes to documentation.

Changes have been made to:

  • the incorporation of increase lender mechanics to allow any commitment cancelled pursuant to the illegality or prepayment of single lender provisions to be assumed by a replacement lender
  • the expansion of the agent's spot rate of exchange to allow for agents to use a publicly available rate
  • updates to the definition of federal funds rate to reflect market practice and a change in the manner in which the rate is calculated
  • expansion of all lender matters to cover, among other things, a change in currency of payment

Other changes include:

  • the users’ guide to LMA finance party default and market disruption clauses to remove the provisions relating to Alternative Reference Banks
  • the leveraged-based documentation to update the representation in respect of centre of main interests to refer to the recast Insolvency Regulation (EU) 2015/848
  • better align provisions throughout the documentation, and
  • the leveraged senior facilities agreement and the real estate finance facilities agreements to envisage free transferability between arrangers

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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.