Banking & Finance Law

The uncertain economic climate has led to unprecedented challenges in the finance sector. It is more difficult than ever to get your deals done.

Our easy-to-follow practice notes (covering a wide range of specialisms) walk you through the whole process: what you need to do, when and why. So that difficult or unfamiliar areas make sense, fast.

Our comprehensive drafting notes mean you'll know when to push a point - and when to let it go. Plus, you can follow direct links to what's happening in the market from the Journal of International Banking and Financial Law, as well as links to commentary from texts such as Lingard's Bank Security Documents, Fuller's Law and Practice of International Capital Markets, Henderson on Derivatives, Paget's and Halsbury's Laws. Underpinning it all are direct links to legislation and cases.

Which means that you spend less time looking for the answers. And more time making sure the funds flow.

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Practice notes

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Latest Banking & Finance News

Nature of a security trustee’s powers and duties

The following Banking & Finance news provides comprehensive and up to date legal information on Nature of a security trustee’s powers and duties

PizzaExpress—Part 26A restructuring plan sanction hearing

The following Banking & Finance news provides comprehensive and up to date legal information on PizzaExpress—Part 26A restructuring plan sanction hearing

The first UK restructuring plan—Virgin Atlantic’s solvent recapitalisation

The following Banking & Finance news provides comprehensive and up to date legal information on The first UK restructuring plan—Virgin Atlantic’s solvent recapitalisation

Comment—financial regulation inevitable for sour loan-laden UK lenders

The following Banking & Finance news provides comprehensive and up to date legal information on Comment—financial regulation inevitable for sour loan-laden UK lenders

Featured Banking & Finance content

Loan Market Association (LMA)—news on documentation [Archived]

This Practice Note is an archive of news from the Loan Market Association (LMA) on LMA documentation and related topics. It covers LMA updates from...

Foreign exchange (FX) derivatives

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be...

Incremental debt flexibility or accordion features

What are incremental facilities?An incremental facility is feature included in a credit agreement where, subject to meeting certain pre-agreed...

Fixed and floating charges

There are four main types of security available under English law: •mortgage•charge•pledge, and•lienThis Practice Note explains:•the nature of a...

Practice notes

ISDA definitions

The vast majority of derivative transactions are documented by standard documentation developed and published by the International Swaps and...

9th Nov

In-house

Practice notes

Synthetic securitisations

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be...

9th Nov

Practice notes

Drafting and negotiating the facility agreement

This Practice Note covers the typical structure of facility agreements and the key terms and provisions that will be included. It examines the process...

9th Nov

Practice notes

Overdrafts, term loans and revolving credit facilities

This Practice Note explains the features of three common types of loan facility:•overdrafts•term loans, and•revolving credit facilities (RCFs)It also...

9th Nov

In-house

Practice notes

Events of default

This Practice Note considers:•the purpose of events of default included in facility agreements•common events of default relating to borrowers and...

9th Nov

COVID-19

In-house

Practice notes

Assignments by way of security

Assignments by way of security can take different forms and it is important to understand how they are created and their effect. Security over choses...

9th Nov

In-house

Practice notes

Crystallisation of floating charges

The key feature of a floating charge is that, until it crystallises, the chargor is entitled to deal with the charged assets in the normal course of...

9th Nov

Practice notes

Third party security

In many commercial finance transactions, lenders expect to be given some form of credit support to increase their confidence in being able to recover...

9th Nov

Practice notes

Transferring a loan by sub-participation

Sub-participation is a means by which a lender can transfer its risk in a loan to another lender. For an overview of the reasons why a lender might...

9th Nov

Practice notes

Key issues in loan transfers

There are times when a lender might want to get back some of the money it has lent to a borrower before the borrower is due to repay it.If the...

9th Nov

Practice notes

Debt securities—10b-5 letters

A 10b-5 letter (also referred to as a 'disclosure letter') is a letter delivered to the underwriters by issuer's and underwriters' counsel in...

Produced in partnership with Charles Farnsworth of Baker McKenzie and Adam Farlow of Baker McKenzie 12th Jan

Practice notes

Instructing and managing local counsel

Given the cross-border nature of many banking transactions, it is common for the principal legal advisors for lenders and borrowers to need to...

9th Nov

Practice notes

Floating charges—advantages and disadvantages

Summary of advantages and disadvantages of the floating chargeThis Practice Note discusses the advantages and disadvantages of taking a floating as...

9th Nov

Precedents

Director’s certificate for a bilateral loan: borrower

[insert date]To:[insert full name and address of lender]Dear [insert full name of lender]I am a director of [insert full name of borrower] (the...

9th Nov

Practice notes

Guide to completing the ISDA Schedule

Coronavirus (COVID-19): This Practice Note contains information on subjects potentially impacted by the government and regulators' responses to the...

9th Nov

Practice notes

Taking security over uncertificated shares held in CREST

Shares are commonly offered as security for a loan in commercial lending transactions.Practice Note: Taking security over shares explains how to take...

9th Nov

Most recent Banking & Finance content

Q&As

Is it possible for a party to grant a charge over potential, future damages the party may receive from a court action they are involved in?

As a general rule, it is possible to grant security over receivables as a chose in action. A chose in action is an asset or sum which is recoverable...

22nd Jan

Practice notes

Corporate Insolvency and Governance Act 2020 moratorium and restrictions on ipso facto clauses—financial services exemptions map

This Practice Note provides a map of the financial services exemptions from the provisions for moratorium and restrictions on ipso facto clauses which...

22nd Jan

Practice notes

Restructuring options

There are many options for restructuring a company's debt. The most appropriate method depends upon the degree of the company's financial...

22nd Jan

Practice notes

The Corporate Insolvency and Governance Act 2020 and other developments in insolvency and restructuring—key issues and discussion points for lenders

An introduction to the legislationCorporate Insolvency and Governance Act 2020Expedited by the coronavirus (COVID-19) pandemic, the Corporate...

22nd Jan

COVID-19

Q&As

In light of coronavirus (COVID-19), when a client has just returned from Italy and thus witnessing security documentation in person is not possible for at least 10 days, would being present via Skype be sufficient for confirming the presence at deed signing? Are there any other procedures in place?

The Law Commission on Electronic Execution of Documents (Law Com No. 386) concludes that there is no need for formal primary legislation to reinforce...

Produced in partnership with Chris Bryden of 4 King’s Bench Walk 22nd Jan

COVID-19

Q&As

If a lease, which is subject to a registered charge, is varied by way of Deed of Variation without the consent of the lender, will the lender be bound by the terms of the variation if it enforces its security?

A deed of variation is an agreement between the lessor and the lessee to alter the terms of the lease. There are myriad reasons why a deed of...

Produced in partnership with Chris Bryden of 4 King’s Bench Walk 22nd Jan

Q&As

Does the maxim ‘once a mortgage always a mortgage’, aligned to the equity of redemption principle, apply to prevent the mortgagee from transferring a property (ie an interest in land) to itself or a connected company? Or is the mortgagor’s only protection against this the mortgagee’s duty to get the best value on sale by a mortgagee, as well as the mortgagor’s right to redeem the charge?

The purpose of a mortgage is to provide security to a lender against a loan, meaning that if the borrower defaults the mortgagee can exercise the...

Produced in partnership with Chris Bryden of 4 King’s Bench Walk 22nd Jan

Q&As

Are mixed signings permissible? For example where one party to a deed signs a counterpart in wet ink and another signs a counterpart with an electronic signature; where one counterpart is wet ink signed and the other counterpart is signed by virtual means (a Mercury signature); or where one counterpart has a Mercury signature and the other counterpart has been signed with an electronic signature.

The practice of electronic signing of documents has risen in popularity in recent times, and has accelerated further as a result of the coronavirus...

Produced in partnership with Chris Bryden of 4 King’s Bench Walk 22nd Jan

COVID-19

Practice notes

Corporate Insolvency and Governance Act 2020—the pensions implications

Key provisions of the ActOn 25 June 2020, after less than 40 days in Parliament, the Corporate Insolvency and Governance Act 2020 (CIGA 2020) received...

22nd Jan

COVID-19

Practice notes

Benefits of restructuring over formal proceedings

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s...

22nd Jan

Practice notes

Corporate Insolvency and Governance Act 2020—moratorium

The Corporate Insolvency and Governance Act (CIGA 2020) inserts a new Part A1 into the Insolvency Act 1986 (IA 1986) which provides for a new...

22nd Jan

COVID-19

Practice notes

DTEK schemes—deal debrief

Brexit impactAs of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has...

Produced in partnership with Marc Hecht of Latham & Watkins 22nd Jan

Practice notes

Schemes of arrangement and restructuring plans—class issues

This Practice Note looks at the general principles involved in determining class issues. For a more detailed look at what may or may not fracture a...

Produced in partnership with Jonathan Akinluyi of Latham & Watkins and Riccardo Alonzi of Skadden 22nd Jan

Practice notes

The Insolvency (England and Wales) Rules 2016—Part 2: Changes to company voluntary arrangements (CVAs) [Archived]

This Practice Note has been archived and is not maintained.The Insolvency (England and Wales) Rules 2016, SI 2016/1024 (IR 2016) were laid before...

Produced in partnership with Emma Knight of Three Stone 22nd Jan

Practice notes

Restructuring cross-border groups using English pre-pack administration

Brexit impactAs of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has...

22nd Jan

Practice notes

Covenant waivers and resets

One of the initial signs of distress is usually a covenant breach by the company. The lenders may agree to a simple waiver, which cures a temporary...

22nd Jan

Practice notes

The US chapter 11 process

Coronavirus (COVID-19)This content is affected by the coronavirus (COVID-19) pandemic. For further details, take a look at our Coronavirus (COVID-19)...

Produced in partnership with Liz Downing of Skadden Arps Slate Meagher & Flom LLP 22nd Jan

Practice notes

What is a pre-pack administration sale?

Stop pressOn 8 October 2020, the Insolvency Service published the outcome of its review conducted into the impact of the voluntary industry measures...

22nd Jan

Practice notes

Schemes of arrangement—key cases

This Practice Note sets out certain key cases and associated relevant content in relation to schemes of arrangement. The cases are divided by topic...

22nd Jan

Practice notes

New money and equity injections in a restructuring situation

Need for new moneyThe starting point for many companies facing financial difficulty is to look to obtain additional cash to fund the business through...

22nd Jan