Are recent trends restricting loan transfers
reasonable or an unnecessary fetter on lender
|1 Minute read
|There has been a lot of
recent tension between borrowers and lenders on transfer
provisions in loan agreements.
Borrowers are increasingly seeking tighter restrictions
on transfers by lenders. This article considers whether
new restrictions being imposed on the transferability of
loans are reasonable or an unnecessary constraint on the
trading of loans.
It also addresses the concept of deemed consent, when
consent can be withheld or delayed, and some recent
trends and statistics for transfer restrictions and
Transfer and assignment provisions in English law loan
agreements are often hotly negotiated. There has recently been
an increasing encroachment by borrowers on these
Historically, many loan agreements required borrower
consultation only (as opposed to consent) for assignments or
transfers by lenders of loan participations. The current Loan
Market Association (LMA) form for leveraged...