The following Banking & Finance practice note provides comprehensive and up to date legal information covering:
Where interest is added to the principal amount of a loan to be paid at the same time as the principal. This contrasts with cash interest which is paid by the borrower at regular intervals throughout the life of the loan.
Interest—funding rates and margin
Collateralised debt obligation—a type of security issued by an SPV and secured on a portfolio of loans, bonds or other debt securities
Financing that is available to a borrower with no conditions or with limited conditions. Under the Takeover Code, certain funds are required for an acquisition of a public company. It is common for lenders on acquisition finance transactions to lend on a certain funds basis, even where the target is a private company.
Acquisition finance—facilities agreement: overview — Utilising, repaying and prepaying the facilities
A negotiable bearer instrument which is evidence of a fixed term deposit with a bank and which either bears interest (at a fixed or variable rate) or is issued at a discount. CDs are commonly issued with maturities between one month and five years.
The advantage for the bank is that CDs are a simple and flexible way of obtaining fixed term funding from both retail and institutional investors. Documentation and administration costs are minimal.
The advantage for investors is that, as a fixed term deposit, a CD will generally bear
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This Practice Note explains certain common financial covenants used in commercial finance transactions including:•minimum net worth test•gearing ratio•leverage ratio (or debt to equity ratio)•current ratio (or acid test ratio)•cashflow ratio•interest cover ratio, and•loan to value ratioIt explains:
The primary function of office-holders in personal and corporate insolvency is to collect in the assets belonging to a company or individual and to distribute these to the company's or individual's creditors. Office-holders have various duties and powers in order to ensure that they do this. For
Codicils may be used for making any alteration in a Will such as to alter the executors or make changes in legacies, whether by addition or deletion but that is by no means their only use. As a general rule, substantial changes are best achieved by means of a new Will and codicils are more
For guidance on the basic features of the doctrine of estoppel and the different classifications it has been subject to, see Practice Note: Estoppel—what, when and how to plead and related content.Promissory estoppel—what is it?Where A has, by words or conduct, made to B a clear and unequivocal
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