Conditions precedent phase in loan transactions
Conditions precedent phase in loan transactions

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

  • Conditions precedent phase in loan transactions
  • Timing
  • What happens during this phase?
  • Key tasks for lawyers within this phase
  • Who does what?
  • What happens if all conditions precedent are not satisfied before drawdown?


This phase often overlaps with the Finance documents phase in loan transactions. Once the lawyers have started to draft the finance documents, the list of conditions precedent which the borrower will need to provide to the lender (or the facility agent in a syndicated transaction) before it can draw down the loan will start to take shape. To save time, the borrower will usually start preparing the conditions precedent documentation and circulating it for review while the finance documents are being negotiated.

This phase is usually the second longest phase in the transaction. The length of this phase will depend on the number of conditions precedent in the transaction and the efficiency with which the borrower provides the r

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