Typically refers to all the documents that make up the terms of the financing arrangement between the borrower and lender(s). The term is normally defined in the facility agreement and generally includes the facility agreement, security documents, certain side letters to which a finance party is party and intercreditor agreements or deeds of priority

Timing Once the structure of the deal has been agreed and the term sheet agreed and signed (for more information, see Practice Notes: Term sheet and mandate phase in loan transactions and How to draft and negotiate a LMA investment grade term sheet), the parties will proceed to drafting and negotiating the key finance documents of the transaction. For transactions with tight deadlines, parties may begin working on the key finance documents before a term sheet is signed. The finance documents phase will most likely be the longest phase in the transaction and could range from just a few weeks for a simple transaction to many months for more complex transactions. What happens during this stage of the transaction? This is the phase in the transaction where the finance documents are drafted and negotiated. All loan transactions will include a loan agreement (often called a 'facility agreement', 'facilities agreement' or 'credit agreement'), which is the principal finance document including the terms on which the lender is willing to provide funding to the borrower.

This Practice Note considers the key criteria for the existence of a finance lease as well as its main characteristics. It also looks at the main advantages of a finance lease. This Practice Note should be considered alongside Practice Notes: Operating leases and Lease finance structures. Characteristics of a finance lease The accounting standard ‘FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland’ classifies a lease as a finance lease ‘if it transfers substantially all the risks and rewards incidental to ownership’. This test is likely to be met where the lease rentals payable for the asset mean that the lessee will cover the full cost to the lessor of supplying the asset and the term of the lease corresponds approximately with the whole of the useful life of the asset. The key difference therefore between a finance lease and an operating lease is whether the lessor (being the legal owner who rents the assets) or the lessee (who actually uses the asset) assumes the risks of ownership. The lessee will take on

Typically refers to the lenders, facility agent, arranger, security agent on a syndicated facility agreement, though there may be other finance parties.

It isn’t only borrowers that can get into financial difficulties. Finance parties (eg lenders, facility agents and security agents) are also at risk of getting into financial difficulty. Facility agents play a crucial role in the mechanics and administration of syndicated facility agreements. If they don't perform their duties, both the lenders and the borrower can be adversely affected, with payments and notices potentially not reaching the intended recipient. The Loan Market Association’s (LMA) recommended form of senior multicurrency term and revolving facilities agreement (compounded rate/term rate) for leveraged acquisition finance transactions (LMA leveraged facilities agreement), and the other LMA leveraged finance facilities agreements, contain provisions to help counteract some of the potential problems that may arise on syndicated facilities where a lender or a facility agent is at risk of not meeting its obligations. While the LMA recommended forms of investment grade documentation do not include the provisions, parties may decide to include them in other syndicated facility agreements. The standard form documentation is available to LMA members on the LMA website. This

It isn’t only borrowers that can get into financial difficulties. Failure by a lender to meet its lending commitments under a loan agreement could have severe implications for the borrower, who may not be able to meet its own financial commitments. It is also likely to have knock on effects for other lenders who may find the borrower’s ability to make repayments is impacted. The Loan Market Association’s (LMA) recommended form of senior multicurrency term and revolving facilities agreement (compounded rate/term rate) for leveraged acquisition finance transactions (LMA leveraged facilities agreement), and the other LMA leveraged finance facilities agreements, contain provisions to help counteract some of the potential problems that may arise on syndicated facilities in the event that a finance party is at risk of not meeting its obligations. While the LMA recommended forms of investment grade documentation do not include the provisions, parties may decide to include them in other syndicated facility agreements. The standard form documentation is available to LMA members on the LMA website. Only a small proportion of

Law360: More than three-quarters of finance professionals in the UK stayed silent after spotting or suspecting internal fraud in their workplaces, a survey published on 21 May 2024 showed, with nearly half saying they feared a backlash.

Clause 1 Insert a new definition as follows (if not already included): Respective Proportion means, in relation to a Shareholder, the proportion which the number of Shares held by that Shareholder bears to the total number of issued Shares of the Company; Replace clause 9.3 with the following new clauses 9.3 and 9.4: 9.3 In the event that, at any time during the term of this Agreement, any such borrowings are not available or do not satisfy the working capital requirements of the Company as determined by the Board, each of the Shareholders, when requested from time to time, lend to the Company its Respective Proportion of the amount specified by the Board on the terms set out in clause 9.4 provided that: 9.3.1 the maximum principal amount which the Shareholders shall be required to lend under this Agreement (when aggregated with the principal amount of all other loans made by the Shareholders to the Company and still outstanding) is £[insert amount]; 9.3.2

Introduction to FATF The Financial Action Task Force (FATF) was set up in 1989 as an inter-governmental body which promotes effective implementation of measures for combatting money laundering and terrorist financing along with other threats to the integrity of the international financial system. Its membership, comprising jurisdictions and regional organisations, represents most major financial centres in the world. It also has many associate members and observer organisations. Its stated objective is to: ‘protect financial systems and the broader economy from threats of money laundering and the financing of terrorism and proliferation, thereby strengthening financial sector integrity and contributing to safety and security’ It achieves this by examining and developing measures to detect and prevent money laundering (AML), combat terrorist financing (CTF), and counter the financing of proliferation (CFP) of weapons of mass destruction (WMD). Other areas of focus for FATF includes corruption, environmental crime, asset recovery, digitalisation and beneficial ownership. FATF aims to meet these targets by: • conducting and publishing expert operational and strategic studies on risks, trends, and methods • developing global policies

The FAS was established in May 2004 and is intended to provide financial assistance to people whose defined benefit scheme wound up with insufficient assets to satisfy in full the scheme liabilities, but are not protected by the Pension Protection Fund.

The date on which the Private Finance Initiative (PFI) or other project signs and closes in financial terms (and, in particular, the finance documentation, including any interest rates etc) are 'locked in'. After this point any works commence.

The Financial Conduct Authority (FCA), previously known as the Consumer Protection and Markets Authority (CPMA), an agency formed as one of the three successors to the unlamented Financial Services Authority. The agency will regulate financial firms providing services to consumers and maintain the integrity of the UK's financial markets.