Lma Real Estate Finance Facility Agreement

Financing can be done on a fixed or variable rate basis, and detailed provisions for a variable rate loan with hedging are included. Speculative counterparties are parties to the loan agreement and interest payments under the facility and settlement maturities under hedging are estimated to be a few days after the relevant lease dates. However, the agreement is not deliberately intended to resolve certain hedging issues for which there is no consensus in the market, such as for example. B the growing desire of counterparties to have a say in termination and other matters. No compensation provision is included in the advance payment of a fixed-rate loan. 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. The Loan Market Association (“LMA”) launched its agreement on the Real Estate Finance Facility in April. We believe the agreement is (and should) be welcomed. However, as the AML admits, it is not easy to conclude a “one size fits all” agreement and the objective is more modest. . . .