Limber up for rate reform
Rate reform has been high on the FCA agenda since 2013, arising out of the financial crisis in 2007. And this year will see Finance House Base Rate (FHBR) disappear. In this article, we consider what firms should be doing now to prepare for this.
LIBOR no more: Effects on lender and borrower arrangements
LIBOR (the London Inter-bank Offered Rate) will cease to be available from the end of 2021. Here we look at some of the implications for lenders and borrowers.
The practical implications of Brexit for lenders and borrowers part 3
In the previous articles in this series we focussed on the practical implications of Brexit for lenders and borrowers, and their finance agreements. In this article we consider the position of EU law on UK finance arrangements going forward.
The practical implications of Brexit for lenders and borrowers part 2
In the first article in our series we focussed on the practical implications of Brexit for lenders and borrowers, and their finance agreements. In this second article, we consider more specific impacts on the legal documentation and what points to look out for under your facilities agreement.
The practical implications of Brexit for lenders and borrowers
We have all seen and heard the constant commentary about Brexit, but we want to focus in this first article in our three-part series on the practical implications for lenders and borrowers, and their finance agreements.
When is a corporate guarantee a distribution?
In 2017 the ICAEW and ICAS suggested that an upstream or cross-stream guarantee might amount to a distribution of profits unless a fee was payable in return for the granting of the guarantee.
Using customer payments to ease cashflow just got easier
Why? Because new legislation prevents the prohibition of assignment of receivables under certain contracts.
Admiralty Court hands down judgement on ship mortgage claim
Today, the Admiralty Court handed down judgment in in a claim under a marine mortgage over an offshore support vessel. The bank was represented by Elliot Bishop of Shoosmiths and James Watthey, Barrister at 4 Pump Court chambers
Shhhh! Is your conversation more than you expected?
In a recent chat with a client, a typical scenario was mentioned: a phone conversation between lender and borrower about the current state of the loan facility.
When is it reasonable for a lender to withhold consent?
Secured lenders often restrict a borrower's ability to dispose of a property by requiring their prior consent, which is often qualified by
LIBOR, no more?
The expected phase out of LIBOR is creating uncertainty in the markets and in this article we examine what might replace it and the impact on current documentation.
No assets required for validity of floating charge
In Saw v Wilson, the Court of Appeal held that a second ranking floating charge would be valid and enforceable, even if at the time it was created there were no uncharged assets to which the floating charge could attach.
Incremental facilities - efficient financing
The current economic climate has prompted borrowers to seek more flexibility for their financing arrangements. One option that may be available to them is an accordion facility, otherwise known as an 'incremental' facility.
Asymmetric jurisdiction clause confers exclusive jurisdiction
The High Court has ruled that the asymmetric jurisdiction clauses in a series of finance documents confer exclusive jurisdiction for the purpose of the Recast Brussels Regulation.
Court of Appeal applies 'autonomy of credit' principle
The 'autonomy principle' applying to letters of credit - and the restricted use of the fraud exception - has been applied by the Court of Appeal (
ECJ rules on defining financial collateral arrangements
Restriction on disposal remains key as European Court of Justice (ECJ) gives its first ruling on the interpretation of the financial collateral arrangements directive in Private Equity Insurance Group SIA v Swedbank AS 
Mid-market corporate finance - a look ahead at 2017
This article will look at market trends which we expect to impact the mid-market in the year ahead.
Are courts becoming more lender-friendly?
Are the courts beginning to take a more lender-friendly approach to enforcing security and guarantees?
The need for asset based lenders to carry out due diligence before purchasing debt
In Bibby Factors Northwest Limited v HFD Ltd, the Court of Appeal highlighted that asset based lenders should ensure that they carry out due diligence on customer contracts before purchasing debt.
Agreeing to treat FOS decisions as binding
This article looks at the case of Templars Estates Ltd and others v National Westminster Bank Plc and Royal Bank of Scotland, 2016.
Subrogation to unpaid vendor's lien
In the recent case of Bank of Cyprus UK Limited v Menelaou, the Supreme Court showed the flexibility of the equitable remedy of unpaid vendor's lien.
Mid-market corporate finance - a look ahead at 2016
2015 saw a year of growth - after a quietly confident start, the market gained momentum following the election and growth across the sectors continued into the fourth quarter.
Receivables finance and ban on assignment - the New Legislation
The Government has introduced legislation to remove assignment restrictions within contracts which have the effect of preventing access to receivables finance.
Restating facility agreements - will you still rank first?
In this legal update we explore the implications for first ranking lenders of restating original facility agreements.
Lenders beware changes to land registration in Scotland - one strike and you're out
Lenders should take note of key changes to the Scottish land registration system on 8 December 2014.
What an independent Scotland could mean for your business
The 24 March 2016 is the proposed date for independence from the parliamentary union of 1707 if Scotland votes 'Yes' in the referendum in two months' time.
Take it or leave it? - Financial Ombudsman Service awards and res judicata
The Courts in England have ruled that accepting an award from the Financial Ombudsman Service can be a bar to any further proceedings in England & Wales. We examine whether the same principles apply in Scotland.
Acquisition Finance - Trends in 2013 and a look at the year ahead...
The last few years in the mid-market acquisition finance market have been tough for all parties. Opportunities have been fewer and the market more cautious and therefore slower to move when they do arise.
Does 'all monies' mean all monies?
Earlier this year, the Court of Appeal, in National Merchant Buying Society Limited v Bellamy and Another, held that an all monies, continuing guarantee, given when there was an existing specific obligation, was not discharged by a subsequent variation.
Electronic signatures: not yet a substitute for the 'wet' signature in corporate transactions
Signing a document is a simple method of confirming the agreement of contracting parties.
Material Adverse Change - What does it mean?
Material adverse change (MAC) provisions appear in the majority of loan agreements. The recent Grupo Hotelero case included interpretation of MAC in the context of a representation that there had been no MAC in a borrower's financial condition.
Invoice financing: Are you 'on trend'?
In these challenging times, with change around every corner, invoice financing offers a way for businesses to manage cash flow and free up working capital - it is fast evolving into the latest way to fund.
Purpose clauses: Can Lenders claim breach of trust?
In most facility agreements, lenders include a clause that the loan can only be used for a specific purpose (for example to assist with the costs of development of a property).
Will Supreme Court ruling impact on businesses offering 'repair and replace' warranties?
The Financial Services Authority (FSA - now replaced by the FCA) took action against Digital Satellite Warranty Cover Limited (Digital) to wind it up 'in the public interest'.
Revised security registration regime
The current system for registration of company charges has existed for more than 100 years, but has recently been criticised for being too fixed and outdated.
British Bankers Association forced to review LIBOR calculation
The British Bankers Association (BBA) has announced the next steps in its review of how the London Inter Bank Offered Rate (LIBOR) is calculated, following allegations by regulators on various continents that banks have colluded to manipulate LIBOR.