Shipping finance—international aspects
Shipping finance—international aspects

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

  • Shipping finance—international aspects
  • Legal opinions
  • Withholding tax
  • Governing law
  • Jurisdiction clauses
  • Currency

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. For guidance, see Practice Note: Brexit—impact on finance transactions.

This Practice Note will look at the following subjects, which are especially relevant to ship finance due to the international nature of the majority of transactions:

  1. legal opinions

  2. withholding tax

  3. governing law clauses

  4. jurisdiction clauses, and

  5. currency

Legal opinions

A legal opinion is a letter which sets out opinions as to matters of law. It does not cover factual matters. The receipt of a legal opinion (or opinions if relevant to more than one jurisdiction) will generally be a condition precedent in the facility agreement and the lender