Combining doctrinal, practical, and comparative approaches The Law of Multi-bank Financing provides a comprehensive analysis of the legal and regulatory facets of multi-bank financing (particularly loan syndications and loan participations) as well as developing a conceptual framework that allows a consistent and rational approach to these financial practices.
Authors
- Bibliography, etc. Note
- Includes bibliographical references and index
- Control Number Identifier
- CaOOCEL
- Dewey Decimal Classification Number
- 346.7107/3
- Dewey Decimal Edition Number
- 21
- General Note
- Issued as part of the desLibris books collection
- Geographic Area Code
- n-cn---
- ISBN
- 9780773566668
- LCCN
- KE1030
- LCCN Item number
- M88 1997eb
- Modifying agency
- CaBNVSL
- Original cataloging agency
- CaOONL
- Physical Description | Extent
- 1 electronic text (xliv, 506 p.)
- Published in
- Canada
- Publisher or Distributor Number
- CaOOCEL
- Rights
- Access restricted to authorized users and institutions
- System Control Number
- (CaBNVSL)slc00201074 (OCoLC)243586963 (CaOOCEL)400869
- System Details Note
- Mode of access: World Wide Web
- Transcribing agency
- CaOONL
Table of Contents
- Contents 6
- Cases 14
- Statutes 32
- Figures 40
- Preface 42
- Acknowledgments 44
- Abbreviations 46
- 1 Multi-bank Financing: What It Is and Is Not 50
- INTRODUCTION 50
- MULTI-BANK FINANCING 51
- Basic Transactions 52
- Complex Transactions 59
- MULTI-BANK FINANCING CONTRASTED WITH SIMILAR FINANCING TECHNIQUES 64
- Introduction 64
- Multi-bank Financing Contrasted with Syndications and Participations (Debt v Equity) 65
- Multi-bank Financing Contrasted with International Bonds 66
- Multi-bank Financing Contrasted with Securitization 67
- Multi-bank Financing Contrasted with Commercial Paper Programs 69
- Multi-bank Financing Contrasted with Note Issuance Facilities 71
- Multi-bank Financing Contrasted with Unit Trusts 71
- Multi-bank Financing Contrasted with Broadly Syndicated Loans 71
- CONCLUSION 72
- 2 Multi-bank Financing: Who Uses It, Where, and Why 74
- INTRODUCTION 74
- THE PARTIES: WHO USES MULTI-BANK FINANCING? 74
- Borrowers 74
- The Lenders 75
- COMPONENTS OF THE FINANCIAL MARKET: WHERE MULTI-BANK FINANCING OCCURS 85
- Domestic Market 85
- Foreign Market 85
- Eurocurrency/International Financial Market 86
- THE RATIONALE: WHY PARTIES USE MULTI-BANK FINANCING 88
- The Borrower 88
- The Banks 89
- CONCLUSION 95
- 3 Overview of Relevant Areas of Law 97
- INTRODUCTION 97
- CHOICE OF LAW 98
- RELEVANT GENERAL PRINCIPLES OF LAW 99
- Introduction 99
- Set-off 100
- Insolvency 105
- Methods of Transferring or Co-owning Property 109
- CONCLUSION 122
- 4 The Mechanics of Arranging Loan Syndications and Loan Participations 123
- INTRODUCTION 123
- THE MECHANICS OF ARRANGING LOAN SYNDICATIONS 123
- Sourcing the Loan 126
- Structuring the Loan 142
- Selling the Loan 143
- THE MECHANICS OF ARRANGING LOAN PARTICIPATIONS 170
- Loan Participation Procedures 170
- Liability Arising from the Selling Process 171
- CONCLUSION 172
- 5 The Financial Accommodation Facilities Used in Loan Syndications and Loan Participations 174
- INTRODUCTION 174
- DIRECT LOANS 175
- Money Loans 175
- Overdraft Facilities 176
- COMMERCIAL LETTERS OF CREDIT 176
- Overview of Letters of Credit 176
- Syndications of Letters of Credit 177
- Participations of Letters of Credit 179
- BANK GUARANTEES 182
- Introduction 182
- Syndications of Bank Guarantees 184
- Syndications of Direct Pay Standby Letters of Credit 187
- Participations of Bank Guarantees 188
- BANKERS' ACCEPTANCES 189
- Bankers' Acceptances as a Funding Facility 189
- Syndications of Bankers' Acceptances 190
- Participations in Bankers' Acceptances 191
- CONCLUSION 194
- 6 Legal Relations Between the Parties in Loan Syndications 195
- INTRODUCTION 195
- CONTRACTUAL PROVISIONS IN A SYNDICATED LOAN AGREEMENT 196
- Definitions 196
- Amount and Availability of the Credit 197
- Payment, Repayment, and Prepayment 198
- Security, Guaranty, and Insurance 203
- Conditions Precedent 205
- Representations and Warranties 206
- Covenants 207
- Events and Consequences of Default 208
- Miscellaneous Provisions 210
- THE CHARACTERIZATION OF THE SYNDICATION ARRANGEMENT 211
- Importance of Proper Characterization 211
- Characterization of the Syndication Arrangement 211
- CONCLUSION 218
- 7 Legal Relationships Between the Parties In loan Participations 220
- INTRODUCTION 220
- PARTICIPANT-BORROWER RELATIONSHIP 221
- PARTICIPANT-PARTICIPANT RELATIONSHIP 222
- LEAD BANK-PARTICIPANT RELATIONSHIP 225
- Form of the Participation Agreement 226
- Contents of the Participation Agreement: Contractual Rights and Duties 232
- CONCLUSION 251
- 8 The Characterization of the Participation Arrangement 253
- INTRODUCTION 253
- RESOURCE MATERIALS 254
- Extracts from Participation Agreements 254
- Canadian Case Law 255
- ANALYSIS 257
- Agency 258
- Trust 259
- Partnership or Joint Venture 261
- Ownership in Common or Tenancy in Common 263
- Debt Theory: Creditor-Debtor Relationship 264
- Sale Theory: Assignor-Assignee Relationship 267
- ECONOMIC CONSEQUENCES OF CHARACTERIZATION 270
- Borrower's Insolvency 270
- Lead Bank Insolvency 273
- Participant's Insolvency 278
- CONCLUSION 280
- 9 Rights And Duties of the Agent Bank in Loan Syndications and Loan Participations 281
- INTRODUCTION 281
- CONTENTS OF THE AGENCY CLAUSE 282
- Appointment and Authorisation 282
- Duties of the Agent Bank 284
- Authority of the Agent Bank 286
- Limitation on Liability 287
- Conflicts of Interest 288
- Additional Remuneration 288
- Use of Confidential Information 289
- Reimbursement and Indemnification of the Agent 289
- Termination and Replacement of the Agent Bank 289
- GENERAL APPROACH TO THE AGENT BANK'S LEGAL STATUS AND FUNCTIONS 290
- True Agent or Special Agent Debate 290
- Analysis 292
- CONCLUSION 294
- 10 Securities Regulation Issues in Loan Syndications and Loan Participations 296
- INTRODUCTION 296
- OVERVIEW OF THE SECURITIES REGULATION SCHEME 298
- BANKS IN A CHANGING LEGAL ENVIRONMENT: A BRIEF OVERVIEW 299
- U.S. National Banks and Securities Activities 299
- Canadian Banks and Securities Activities 304
- THE INTERFACE BETWEEN LOAN SYNDICATIONS AND LOAN PARTICIPATIONS AND THE SECURITIES LAWS 309
- United States 309
- DO LOAN PARTICIPATIONS INVOLVE A SECURITY? 316
- Canada 322
- CONCLUSION 330
- 11 Accounting and Tax Issues in Loan Syndications and Loan Participations 332
- INTRODUCTION 332
- ACCOUNTING ISSUES IN LOAN SYNDICATIONS AND LOAN PARTICIPATIONS 332
- Sources of Information 332
- General 333
- Rulings and Guidelines 334
- TAX ISSUES IN LOAN SYNDICATIONS AND LOAN PARTICIPATIONS 338
- General 338
- Tax Issues Affecting the Borrower 342
- Tax Issues in Loan Syndications 343
- Tax Issues in Loan Participations 343
- ALL PARTIES RESIDENT IN CANADA 344
- CONCLUSION 350
- 12. Conclusion 352
- SUMMARY 352
- FUTURE DIRECTIONS 356
- General 356
- The Conceptual-Functional Approach to Multi-bank Financing 358
- Codification, Harmonisation, and Legislation for Loan Participations? 359
- APPENDICES 362
- A: Syndicated Facility Agreement 364
- B: Master Participation Agreement 433
- C: Format Participation Agreement 451
- D: Standby Letter of Credit 461
- Notes 464
- Bibliography 530
- Index 544
- A 544
- B 545
- C 546
- D 547
- E 547
- F 548
- G 548
- H 548
- I 548
- J 549
- L 549
- M 550
- N 551
- O 551
- P 551
- Q 552
- R 552
- S 552
- T 553
- U 553
- W 553
