Lehman provisions: Difference between revisions
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imported>Doug Williamson (Create page - source - ACT Slaughter & May Borrower's Guide to the LMA Investment Grade Agreements - p377.) |
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Lehman provisions are parts of loan agreements designed to address the risk of default by a lender or an agent bank. | Lehman provisions are parts of loan agreements designed to address the risk of default by a lender or an agent bank. | ||
:<span style="color:#4B0082">'''''Commentary on the Lehman provisions'''''</span> | :<span style="color:#4B0082">'''''Commentary on the Lehman provisions'''''</span> | ||
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==Other resource== | ==Other resource== | ||
* [https://www.treasurers.org | * [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 - p377] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
Latest revision as of 01:06, 13 March 2023
Borrowing and lending - documentation - finance party default - Loan Market Association (LMA).
Lehman provisions are parts of loan agreements designed to address the risk of default by a lender or an agent bank.
- Commentary on the Lehman provisions
- "The risk of finance party default under a loan agreement is a risk factor that the loan market moved swiftly to address following the collapse of Lehman Brothers.
- The LMA’s response was to create a set of optional 'Finance Party Default' clauses, which were first published in 2009. These are often colloquially referred to as the 'Lehman provisions'...
- Most of the Lehman provisions are a welcome addition to facility documentation for borrowers.
- They are widely used and, generally speaking, the main concepts addressed by the LMA drafting will be familiar to those who have negotiated loan documentation since 2009.
- This might suggest that the most commonly used aspects should be incorporated into the Investment Grade Agreements..."
- The ACT Borrower’s Guide to the LMA’s Investment Grade Agreements - 6th edition - 2022 - p377.
See also
- Default
- Defaulting lender
- Documentation
- Event of default
- Facility
- Finance party default
- Impaired agent
- Investment Grade Agreements
- Lehman
- Loan agreement
- Loan Market Association (LMA)
- Provision
