The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:
Legal opinions are used in the vast majority of financing transactions. They are usually either a condition precedent to funding or a condition precedent to the signing of the finance documentation. They provide the addressee of the legal opinion with information on the legal risks involved in a transaction. Although they are seen across many different types of financing transactions, they can be tricky to deal with from both a legal and practical perspective.
This Practice Note explains:
what legal opinions are
when they are used
who can rely on them
what they cover
how legal opinions are used in cross-border transactions, and
the structure of a typical opinion letter
For more information, see Practice Notes:
Instructing and managing local counsel, and
Drafting or reviewing legal opinions in loan transactions
For an example of an English law legal opinion, see Precedent: Legal opinion letter: English borrower entering into an unsecured bilateral facility agreement.
A legal opinion is a letter which sets out opinions as to matters of law. It does not cover factual matters.
Legal opinions are typically provided by a law firm.
In a small number of cases, they are provided by in-house counsel where, for example, in-house counsel are better placed to provide the opinion than an external law firm. The most common
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