The finance parties
The finance parties

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

  • The finance parties
  • Loan Market Association (LMA) documentation
  • Agent
  • Arranger
  • Security agent or security trustee
  • The Lenders
  • Issuing bank(s)
  • Hedge counterparties

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. This has an impact on this Practice Note. For guidance, see Practice Notes: Brexit—impact on finance transactions and Brexit—documentary implications for facility agreements.

This Practice Note considers the key finance parties involved in a syndicated loan arrangement or syndicated loan facility. It looks at the roles and duties of the arranging bank, facility agent, security agent (also known as the security trustee), the syndicate lenders and the issuing bank(s) with reference to the Loan Market Association forms of loan documentation.

Loan Market Association (LMA) documentation

The LMA is the key organisation in the London syndication market. Its