Dentons - Bank Notes - November 2012

Facility Agreements in 2013: New Laws, New Terms?

November 28, 2012

During 2012, many of those involved in drafting and negotiating facility agreements will have followed the progress of draft legislation, and other related developments, on FATCA, Basel III and LIBOR. Adam Pierce explains what is expected to happen next in each of these areas, and how these changes are likely to affect English law facility agreements in 2013.

Preston Street v. Santander

November 28, 2012

The dispute in Preston Street was over what losses the assignee of a lender could claim “on demand” under an indemnity against “any loss” “incurred” after a consensual prepayment of a fixed rate loan. If the lender had used a long-form facility agreement to document the loan, the broken funding indemnity might have ended the dispute before it began.

Unilateral Election Clauses – The Tungkum Case

November 28, 2012

Unilateral Election Clauses - The Tungkum Case Clauses allowing a party to unilaterally elect to have a dispute resolved by either arbitration or litigation have become increasingly popular in finance documents in recent years.