imported>Doug Williamson |
imported>Doug Williamson |
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| ''Borrowing and lending - documentation - finance party default.''
| | Penalties are generally designed to punish, or discourage, particular behaviour (or omissions). |
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| The concept of an impaired agent bank is an element of borrowing and lending agreements, designed for the protection of the borrower and other lenders under the agreement.
| | In the finance context, penalties are usually money amounts. |
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| It includes situations in which the agent bank fails to honour its commitment to make a payment under borrowing documentation, becomes insolvent, or is a defaulting lender.
| | Examples include tax penalties, penalty charges for late payment of debts, and loss of interest for early withdrawal of a fixed time deposit. |
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| When an agent becomes an impaired agent under the borrowing documentation, the borrower and majority lenders enjoy additional rights to protect their positions.
| | ==See also== |
| | | *[[Breach]] |
| | | *[[Default surcharge]] |
| Impaired agent provisions are a part of ''Lehman provisions''.
| | *[[Liquidated damages]] |
| | | *[[Payables management]] |
| | | *[[Penalty clause]] |
| :<span style="color:#4B0082">'''''Impaired agent provisions widely used'''''</span>
| | *[[Remedy]] |
| | | *[[Time deposit account]] |
| :"These provisions [are widely] used and available in a version suitable for swingline facilities."
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| :''The ACT Borrower’s Guide to the LMA’s Investment Grade Agreements - 6th edition - 2022 - p380.''
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| == See also == | |
| * [[Agent bank]] | |
| * [[Arranger]]
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| * [[Default]] | |
| * [[Defaulting lender]] | |
| * [[Documentation]]
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| * [[Event of default]]
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| * [[Finance party default]] | |
| * [[Investment Grade Agreements]] | |
| * [[Lehman provisions]] | |
| * [[Loan agreement]] | |
| * [[Loan Market Association]] (LMA)
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| * [[Syndicate]]
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| ==Other resource==
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| * [https://www.treasurers.org/best-practice/borrowers-guide-LMA-investment-grade-agreements The ACT Borrower’s Guide to the LMA’s Investment Grade Agreements - 2022 - p379-380]
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:Accounting,_tax_and_regulation]] |
| [[Category:The_business_context]]
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| [[Category:Corporate_finance]]
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| [[Category:Investment]]
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| [[Category:Long_term_funding]]
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| [[Category:Identify_and_assess_risks]]
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| [[Category:Manage_risks]]
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| [[Category:Risk_frameworks]]
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| [[Category:Risk_reporting]]
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| [[Category:Cash_management]]
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| [[Category:Financial_products_and_markets]]
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| [[Category:Liquidity_management]]
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Penalties are generally designed to punish, or discourage, particular behaviour (or omissions).
In the finance context, penalties are usually money amounts.
Examples include tax penalties, penalty charges for late payment of debts, and loss of interest for early withdrawal of a fixed time deposit.
See also
