Brexit—documentary implications for facility agreements
Brexit—documentary implications for facility agreements

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • Brexit—documentary implications for facility agreements
  • Loan Market Association position
  • Issues affecting loan documentation—loss of passporting rights
  • Issues affecting loan documentation—governing law and jurisdiction
  • Issues affecting loan documentation—Contractual recognition of bail-in (Article 55 of BRRD)
  • Issues affecting loan documentation—definitions and interpretation clauses
  • Issues affecting loan documentation—representations, undertakings, events of default and increased costs
  • Issues affecting loan documentation—tax
  • Security documentation

As of exit day, the UK is no longer an EU Member State, but it has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement and Brexit Bulletin—key updates, research tips and resources.

In this Practice Note, since an implementation (or transition) period is now agreed and in place, references to the impact of ‘Brexit’ can usually be read to refer to the impact of the ‘IP Completion Date’, ie the implementation period expiring. However, it should be noted that it is not clear what agreement, if any, the EU and UK will reach on financial services (and other matters) prior to the end of the implementation period. The impact of the implementation period expiring will depend on the precise terms of the agreement reached.