Asset finance

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Negative pledges

This Practice Note examines:•why negative pledge clauses are used in commercial transactions •the consequences of breaching negative pledge...

Sources of Shari'ah

IntroductionShari'ah (also Sharia, Shariah or Shari’a) (literally, in Arabic, 'the path towards the watering place') or Islamic law is the legal...

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...

Practice notes

Intercreditor agreement—key provisions

This Practice Note provides an introduction to intercreditor agreements and their key provisions. This Practice Note:•explains the purpose of having...

9th Nov

Practice notes

Role of a bond trustee

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

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

What is securitisation?

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

Acquisition finance—ancillary facilities

On an acquisition finance transaction, the borrowing group, in addition to the debt (whether loans or bonds) required to fund the transaction, will...

9th Nov

Practice notes

The facility agent

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

Subordination

Subordination is a way of changing the priority of claims against a debtor so that one creditor or group of creditors (the junior creditor(s)) agree...

9th Nov

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

Increased costs

This Practice Note considers the costs that a lender operating in the interbank market will incur when providing funding to a borrower and the steps...

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

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

Practice notes

Market disruption clauses in facility agreements

In summary, a market disruption clause sets out how interest is calculated for a loan if a lender’s cost of funding the loan is in excess of London...

9th Nov

Practice notes

Secondary debt trading—completing the trade confirmation

The majority of secondary debt trades are conducted by telephone or by email. Following the trade call or email exchange, the parties will document...

9th Nov

Practice notes

Drafting or reviewing legal opinions in loan transactions

Legal opinions are one of the key documentary conditions precedent in loan transactions. The legal opinion is a letter which sets out opinions as to...

9th Nov

Precedents

Guarantee and indemnity: cross guarantee from group companies—bilateral—all monies

This Deed of guarantee and indemnity is made on [insert day and month] 20[insert year]Parties1[Insert name of Guarantor], a company incorporated in...

9th Nov

Most recent Asset finance content

Practice notes

Shipping finance—Export Credit Agency financing

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...

Produced in partnership with Tony Rice of HFW, Gudmund Bernitz of HFW and Aysha El-Kaddah of HFW 25th Nov

Practice notes

Superyacht finance—key characteristics of superyacht finance

This Practice Note provides an overview of the main issues to be considered in relation to superyacht finance. Whilst the law underpinning yacht...

Produced in partnership with Ince and Co 25th Nov

Practice notes

Film finance

What is film finance?Films are expensive to make and costs arise during filming and marketing before proceeds are generated from screenings. Film...

Produced in partnership with CMS 25th Nov

Practice notes

Lease finance structures

Operating leases•A pure operating lease provides the lessee with the use of an asset for the term of the lease in consideration for the payment of...

25th Nov

Practice notes

Rail finance—technical support and spares supply agreements

As an alternative to rolling stock being maintained by a maintenance provider pursuant to a train services agreement (TSA), an operator may choose to...

Produced in partnership with Bryan Cave Leighton Paisner LLP 25th Nov

Practice notes

Rail finance—purchase agreements: core provisions

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...

Produced in partnership with Bryan Cave Leighton Paisner LLP 25th Nov

Practice notes

Aviation finance—tax leases

Aviation finance lends itself to tax leasing in many jurisdictions. Tax leases are usually a means of tax deferral. They can be advantageous, from a...

Produced in partnership with Norton Rose Fulbright 25th Nov

Practice notes

The use of residual value agreements in aviation finance

Residual value agreements are a tool for allocating the residual value risk in an aircraft.The key reasons for using residual value agreements are:•to...

Produced in partnership with Norton Rose Fulbright 25th Nov

Practice notes

Purchase agreements for new aircraft

Purchase agreements for new aircraft are entered into between an aircraft manufacturer (as the seller) and a customer (as the purchaser). In the...

Produced in partnership with Norton Rose Fulbright 25th Nov

Practice notes

Taking security over aircraft

Coronavirus (COVID-19):Dealing with the Civil Aviation authority—For information on dealing with the Civil Aviation Authority and submitting aircraft...

Produced in partnership with Norton Rose Fulbright 25th Nov

Practice notes

Shipping finance—enforcement of security

STOP PRESS—Coronavirus (COVID-19) and registration of charges at Companies House: The content of this Practice Note is affected by the Companies etc...

25th Nov

Practice notes

Finance leases

This Practice Note considers the key criteria for the existence of a finance lease as well as its main characteristics. It also looks at the main...

25th Nov

Practice notes

Aviation finance—an introduction

The essence of aviation finance is that a lender will advance money to a borrower for the purposes of financing (or refinancing) its acquisition of an...

Produced in partnership with Norton Rose Fulbright 25th Nov

Practice notes

Ship registration

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...

25th Nov

Practice notes

Alternative leasing structures

This Practice Note looks at two other important types of leasing transactions that may arise, outside the standard operating or finance leases. The...

25th Nov

Practice notes

Advantages and disadvantages of asset finance

Advantages•Cash flow benefits for lessee— the operating cash flow of the lessee is likely to be in a stronger position than under a typical loan...

25th Nov

Practice notes

Shipbuilding contracts

This Practice Note considers the main terms included in standard form shipbuilding contracts. In particular, it looks at:•standard forms of the...

25th Nov

Practice notes

Superyacht finance—taking security over superyachts

STOP PRESS—Coronavirus (COVID-19) and registration of charges at Companies House: The content of this Practice Note is affected by the Companies etc...

Produced in partnership with Ince and Co 25th Nov

Practice notes

Introduction to asset finance

What is asset finance?Asset finance is a method of providing financing for the purchase of particular tangible movable assets. The structure of the...

25th Nov

Practice notes