LMA May Monthly Update
For the latest legal & regulatory news, regulatory submissions, briefing notes and upcoming LMA events.
LMA responds to European Commission's consultation on shadow banking
After consultation with LMA members, we have submitted a response which both answers the questions put forward by the European Commission but also includes our feedback in general on the shadow banking industry.
Documentation Alert: Revised Pan-European Private Placement Subscription Agreement
The LMA has made a minor correction to the pan-European private placement subscription agreement, a revised copy of which has been posted to the website, together with a redline highlighting the change.
Tael One – construction of LMA terms and conditions for secondary debt trading
The Supreme Court recently handed down its judgment in the case of Tael One Partners Limited (Appellant) v Morgan Stanley & Co International PLC (Respondent)  UKSC 12. The case is of particular interest because it involved a dispute over the construction of the terms of a secondary debt trade on standard LMA terms. Whilst the outcome of the case is not surprising, it is a useful reminder to those involved in secondary loan trading to be sure that, if the underlying loan agreement contains unusual fee or interest provisions, the parties agree the allocation of such fee or interest at the time of trade.
LMA updates Release and Reliance Letters
The LMA Template Release and Reliance Letters have been updated to state expressly that the Finance Parties' obligations are given on a several basis.
LMA Guidance in relation to sanctions
Given the abundance of recent sanctions legislation that lenders are currently being required to comply with, it is important that members are aware not only of what those requirements are, but also their impact on loan transactions. In order to assist its members with understanding their compliance obligations generally and the impact of EU and US sanctions on loan transactions, the LMA has produced five types of guidance notes to date.