Facility Agreement Practical Law

As a general rule, the credit agreement sets a period during which withdrawals and mobilisations can be made subject to conditions precedent. A condition precedent is an event that must occur before a contract can be performed, such as for example. B the provision of certain documents or the provision of guarantees. For more information, see our separate out-LAW Guide on conditions precedent [Link to: OUT-LAW Guides – Banking – Precedent conditions]. We have published a note entitled “Documentary implications of the end of the Brexit transition period for LMA facility Documentation” (“Brexit Note”) which consolidates and updates previous Brexit notes published in September 2016 and April 2019, as well as two EU legislative references for the target tables. These documents (the term of which includes, context permitting, text, content, spreadsheet with macros and electronic interfaces, as well as their underlying assumptions, conversions, formulas, algorithms, calculations and other mathematical and financial techniques) are made available to members of the Loan Market Association, in accordance with the by-laws of the Loan Market Association (a copy of which is available here); to facilitate the documentation of transactions in credit markets. None of the Loan Market Association, Allen & Overy or Clifford Chance assumes responsibility for any use to which such materials may be provided, for any loss, damage or liability resulting from such use. None of the Loan Market Association, Allen & Overy or Clifford Chance have verified the laws of any jurisdiction that may apply to any of the parties to an agreement on the use of such materials and their subject matter. Members should therefore consider all relevant legal, accounting and regulatory issues before using these materials or conducting a transaction in connection with these documents and, where appropriate, consult with their professional advisors. We published a revised draft agreement on the rate change system (retrospective without change of observation); new agreement on the rate change in the project (retrospective with observation lag); a revised commentary on tariff change agreements; the roadmap for tariff exchange agreements; and the RFR conditions to be used in addition to the revised replacement of the screen throughput language.

The credit agreement will generally recognize two different phases for PFI projects: the construction phase and the operation phase. The purpose of these funds is carefully documented in the credit agreement to ensure that their use is limited to their purpose. This involves channeling payments or uses through dedicated project accounts, whose payments can only be made for specific agreed purposes. These payments may include: the amount of typical project financing means that most loans cannot be executed by a single lender. Instead, a consortium of lenders is formed. In a typical syndication, a number of lenders are parties to the credit agreement. For more information, see our separate DE-LAW introduction to project-funded documents [Link to: OUT-LAW Guides – Banking – Introduction to Project Financing Documents]. As a reminder, we call “Projectco” the company or private sector partner created for the sole purpose of owning the project and the public authority that concludes the agreement with Projectco of “authority”.

This community use agreement template, developed with the law firm Field Fisher Waterhouse LLP, reflects our extensive knowledge and recent practice in creating, implementing and managing AUC. This is a basis for the development of agreements for a number of different educational institutions. Any repayment formula must be structured in such a way that it derives the revenue expected by Projectco. Typically, the formula requires the higher value of a minimum repayment and a set percentage of the project`s cash flows for the relevant period to be taken into account with the credit facility. . . .