Open AccessLEGAL STATUS OF PARTICIPANTS OF INTERNATIONAL SYNDICATED LOAN TRANSACTIONS
Author(s) -
Oleksandr Vygovskyy
Publication year - 2016
Publication title -
aktualʹnì problemi mìžnarodnih vìdnosin
Language(s) - English
Resource type - Journals
eISSN - 2663-8959
pISSN - 2308-6912
DOI - 10.17721/apmv.2016.127.2.65-72
Subject(s) - syndicate , syndicated loan , loan , database transaction , business , liability , legal status , memorandum , accounting , memorandum of understanding , finance , law , political science , computer science , programming language
The article reveals legal issues related to the status of participants of international syndicated loan transactions – the arranging bank (lead manager), the agent bank, the banks participating in the international syndicate, the borrower. In particular, the author of the article makes comparison of the legal status of the arranging bank and the agent bank taking into consideration their functions and powers, specifics of relations with other banks and the borrower.Special attention is paid to the liability of the lead manager for the contents of the information memorandum sent to the potential participants of the international syndicate at the preparatory stage. The article also covers specific issues related to use of the international syndicated loan agreement as a single agreement defining the legal basis of interaction of all participants of this transaction, their rights and obligations, liability for violation of the contractual obligations incurred by the participants.