LMA publishes updated documents to reflect revised counterparts and bail-in clauses
The Loan Market Association (LMA) has published several updated documents to incorporate a revised counterparts clause that mirrors the one in the LMA Terms and Conditions for Par and Distressed Trade Transactions. As a result, the requirement to deliver an original counterpart has been removed, unless it is specifically requested within five business days of the settlement date. Furthermore, the amended documents now reference ‘assignment’ alongside ‘novation’ and include the LMA-recommended bail-in clause where applicable. Notably, these revisions do not apply to the Bilateral Netting Agreement, which continues to be governed by the existing counterparts and bail-in clauses in the LMA Standard Terms and Conditions.