The following Banking & Finance practice note provides comprehensive and up to date legal information covering:
In a typical real estate finance transaction, the lenders rely heavily on the rental income generated by the property for repayment of the loan.
As a result, real estate finance lenders will impose strict restrictions on how the property company uses its cash. This Practice Note examines how the lenders commonly impose these restrictions in real estate finance transactions.
The various bank accounts, which will be required, and the restrictions on the operation of each account for a particular transaction are usually agreed at term sheet stage before drafting the facility agreement. See the Loan Market Association (LMA) term sheet for real estate finance multiproperty investment transactions (available to members on the LMA website).
The LMA has clauses to cover these provisions in its:
single currency term facility agreement for real estate finance multiproperty investment transactions (LMA Investment REF Facility Agreement), and
single currency term facility agreement for real estate finance single property development transactions (LMA Development REF Facility Agreement),
together, the LMA REF Facility Agreements.
The bank account provisions are found in clause 17 (Bank accounts) in the LMA REF Facility Agreements.
The LMA Investment REF Facility Agreement is a good starting point for a transaction where the borrower will be purchasing a property or a group of properties from the funding provided by the
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This Practice Note provides an introduction to intercreditor agreements and their key provisions. This Practice Note:•explains the purpose of having an intercreditor agreement and when an intercreditor agreement would be used instead of a deed of priority or subordination deed•provides links to
This Practice Note considers the law governing the procedural law of arbitration proceedings (the curial law or lex arbitri) and how it is determined under the law of England and Wales (England and English are used as convenient shorthand).The procedural law of the arbitral proceedingsThe procedural
What is rescission of a contract?The remedy of rescission is available to a party whose consent, in entering into a contract, has been invalidated in some way:•the effect of rescinding a contract is to extinguish it and restore the parties to their pre-contractual positions•the main grounds of
This Practice Note covers the legal framework and regulatory guidance to be considered in determining whether an arrangement constitutes a contract of insurance and the possible consequences of carrying on activities relating to a contract of insurance without the requisite regulatory permissionsThe
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