18 The issue of set off in funded participation

Because the participation is a contractual arrangement an additional risk for the participant is if the borrower exercises a right of set off against the lender. This could happen if the lender is a bank and the borrower has a deposit with the lender or if the lender has entered into a swap or derivative […]

08, 15, 2015
Comments Off on 17 Funded participation

By whiggs

Transfer of financial assets in transactions

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 […]