SGS 5 - Loan transfers Flashcards
1
Q
What are the 4 relevant methods of loan transfer?
A
- Novation
- LMA assignment
- Sub-participation
- Risk participation
2
Q
Why would a lender wish to transfer their loan?
A
- Risk management
- Capital adequacy
- Non-performing loan
3
Q
What are the key factors in deciding which method to use?
A
- Put in funds?
- Credit risk?
- Security
- Consent
- Confidentiality
- On going commitments?
- Relationship between borrower and lender
- Reputation of lender
4
Q
What clause states that parties agree to use transfer certificates?
A
- 24.5(a)
5
Q
What clauses states that no consent is required for novation or assignment to an existing lender/member of syndicate?
A
24.2(a)
6
Q
What clause allows for disclosure of confidential information provided back to back confidentiality clauses are provided?
A
36.2(b)(ii)
7
Q
What clauses states that a borrower will not be required to pay increased costs if loan transfer results in increased costs?
A
24.2(f)
