This overview is a guide to the Banking & Finance content within the Lending chronology subtopic, with links to the appropriate materials.
Loan transactions typically follow a specific chronology which is explained in this overview.
For more information on loan transactions in general, see the Loan transaction collection—the Banking & Finance loan transaction collection is a guide to loan transactions. It provides an overview of each phase of a loan transaction and the tasks that lawyers are required to complete as part of each phase. The collection includes links to Checklists, Precedents (with Drafting Notes), Forms, Practice Notes and an explanation of the key drafting and negotiating points to consider in loan transactions.
Loan transactions typically start with the term sheet and mandate phase. During this phase, the parties to a potential transaction will enter into confidentiality arrangements, agree the key terms of the transaction and establish their roles in the deal.
The length of this phase will vary considerably, depending on the complexity and nature of the deal.
How detailed a term sheet is will vary—sometimes only key commercial terms
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Legal opinions—uses, scope and structureLegal opinions are used in the vast majority of loan transactions. They are usually either a condition precedent to funding or a condition precedent to the signing of the finance documentation. They provide the addressee of the legal opinion, typically the
Repayment, prepayment and cancellationWhere a facility is committed (eg term loans and revolving facilities), exactly how and when the facility is to be repaid will be set out in the facility agreement. Committed facility agreements will normally also state:•whether or not the borrower is allowed to
Accelerating a loanThis Practice Note looks at considerations prior to, and when accelerating a loan. It discusses:•what is meant by acceleration•the circumstances in which lenders may accelerate•alternatives to acceleration, and•risks and legal considerations in relation to accelerationWhat is
Execution of documents in a loan transactionSigning is an important milestone in a finance transaction. It is the stage when the parties execute the agreed versions of the documents and the transaction becomes binding (albeit, in some cases, subject to certain conditions precedent—see Practice Note:
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