17 Funded participation

Sometimes a party will not want to take a direct novation of a loan but for one reason or another will want a commercial exposure in the loan. It may be motivated to do this because it has taken a positive credit position on the borrower and would otherwise be prohibited for one reasons or […]

08, 15, 2015
Comments Off on 16 Exercise – declaration of trust

By whiggs

Transfer of financial assets in transactions

16 Exercise – declaration of trust

Could a trust be created over the rights of the Lender based on the following clause? “Subject to this Clause [•], a Lender (the Existing Lender) may: (a) assign any of its rights; or (b) transfer by novation any of its rights and obligations, to another bank or financial institution or to a trust, fund […]

08, 15, 2015
Comments Off on Barbados Trust Co v Bank of Zambia [2007] EWCA Civ 148; [2007] 1 Lloyd’s Rep 495

By whiggs

Transfer of financial assets in transactions

Barbados Trust Co v Bank of Zambia [2007] EWCA Civ 148; [2007] 1 Lloyd’s Rep 495

The issue of trusts and no-assignment clauses formed much of the discussion in the case of Barbados Trust Co v Bank of Zambia [2007] EWCA Civ 148; [2007] 1 Lloyd’s Rep 495. The case involved an oil import facility agreement the terms of which are as follows: An assignment was made by the lender of […]

08, 15, 2015
Comments Off on 15 Declaration of Trust

By whiggs

Transfer of financial assets in transactions

15 Declaration of Trust

We now come to one of the more interesting and challenging aspects of the topic of transfer of property in financing transactions. Declarations of trust are commonly used as the mechanism of transferring assets in financing transactions. It is a declaration by an originator of property that it holds that property on trust. In a […]