Increased costs clause: Difference between revisions
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In loan documentation, a clause with the effect that if a lender suffers a cost or loss in relation to the facility as a result of a change in law or regulation, the borrower should indemnify it. The reasoning is based on the ‘cost plus’ approach to pricing loans. | In loan documentation, a clause with the effect that if a lender suffers a cost or loss in relation to the facility as a result of a change in law or regulation, the borrower should indemnify it. | ||
The reasoning is based on the ‘cost plus’ approach to pricing loans. | |||
== See also == | |||
* [[Cost-plus loan pricing]] | |||
* [[Gross up]] | |||
[[Category:Long_term_funding]] | |||
Latest revision as of 16:11, 1 July 2022
In loan documentation, a clause with the effect that if a lender suffers a cost or loss in relation to the facility as a result of a change in law or regulation, the borrower should indemnify it.
The reasoning is based on the ‘cost plus’ approach to pricing loans.
