Governing law, jurisdiction and arbitration clauses in finance documents

Published by a LexisNexis Banking & Finance expert
Practice notes

Governing law, jurisdiction and arbitration clauses in finance documents

Published by a LexisNexis Banking & Finance expert

Practice notes
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This Practice Note discusses governing law and jurisdiction in the context of finance transactions. It explains:

  1. what is meant by governing law and jurisdiction

  2. governing law in more detail, including how the relevant governing law will be determined

  3. jurisdiction in more detail, including applicable Rules for determining jurisdiction

  4. governing law clauses in finance transactions and when English law might not be appropriate

  5. jurisdiction clauses in finance transactions, and considerations when deciding on whether to include an exclusive, non-exclusive or asymmetric jurisdiction clause

  6. service of process and process agents, and

  7. arbitration clauses

Information on governing law and jurisdiction can be found in the following Practice Notes:

  1. Applicable law—a guide for Dispute resolution practitioners, and

  2. Jurisdiction—a guide for dispute resolution practitioners

What is meant by governing law and jurisdiction?

Governing law and jurisdiction are two fundamentally different concepts.

Governing law

The governing law (sometimes referred to as the applicable law) is the law applied by the courts to determine a dispute between parties.

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Jurisdiction(s):
United Kingdom
Key definition:
Finance documents definition
What does Finance documents mean?

Typically refers to all the documents that make up the terms of the financing arrangement between the borrower and lender(s). The term is normally defined in the facility agreement and generally includes the facility agreement, security documents, certain side letters to which a finance party is party and intercreditor agreements or deeds of priority

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