Q&As

Our client has lent under an existing secured facility agreement. The facility amount is being increased under an amended and restated facility agreement—what is the best way to ensure that the increased facility amount is secured?

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Published on LexisPSL on 21/05/2015

The following Banking & Finance Q&A provides comprehensive and up to date legal information covering:

  • Our client has lent under an existing secured facility agreement. The facility amount is being increased under an amended and restated facility agreement—what is the best way to ensure that the increased facility amount is secured?
  • What do the documents say?
  • The existing drafting seems to cover the increase—do I need to do anything further?
  • The drafting doesn't appear to cover the increase, what should I do next?

What do the documents say?

The first step will be to review the existing documents to check whether the increase is clearly contemplated by the drafting.

The two definitions that are likely to be most relevant are:

  1. 'secured obligations' (or equivalent)—the secured obligations may be an all moneys obligation (ie an obligation to repay all indebtedness owed by one or more parties to the lender at any time) or a specific moneys obligation (ie an obligation to repay indebtedness owed by one or more parties under a specific facility agreement or a specific set of finance documents), and

  2. the definition of 'facility agreement' and/or 'finance documents' (if the document is 'specific moneys' rather than 'all moneys')—these should be checked to see if they, or if not, any interpretative provisions, contain the usual wording stating that references to such documents include the documents 'as

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