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

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

  • Brexit—documentary implications for facility agreements
  • Summary of key impacts on facility agreements
  • Loan Market Association position
  • Issues affecting loan documentation—loss of passporting rights and illegality
  • Documentary mitigants in current facilities agreements
  • Potential adjustments to existing or new facility documentation
  • Issues affecting loan documentation—references to the EU, EU law, definitions and interpretation clauses
  • Do references to EU legislation need amending?
  • What approach should be taken to the amendments?
  • What about changes to EU and retained EU legislation?
  • More...

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.

This Practice Note focuses on the impact of the end of the implementation period on facilities agreements. It discusses (or links to detailed information on):

  1. the position on the Loan Market Association (LMA) on changes to legislative references in its documents

  2. the general implications of the loss of passporting rights and the implications for loan agreements

  3. governing law and jurisdiction clauses in facility agreements

  4. how to approach references to EU law in facility agreements

  5. whether contractual recognition of bail-in language needs to be inserted to reflect Article 55 of Directive 2014/59/EU, the Bank Recovery

Related documents:

Popular documents