Bilateral loan Definition

GLOSSARY

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What does Bilateral loan mean?

A loan agreement under which a single lender makes loan facilities available. Contrast with a syndicated facility.

View the related checklists about Bilateral loan

Taking security—fixed charge—checklist

Taking security—fixed charge—checklist Scope of this Checklist This Checklist sets out the factors to consider when a company is proposing to grant a fixed charge. It assumes that an English or Welsh company will be granting a number of fixed charges to a lender situated in England or Wales. In this Checklist: • the company granting the fixed charge is called the 'chargor' • the entity to which the charge is granted is called the 'chargee', and • the document containing the fixed charge is called the 'security document' Fixed charges can be granted in a standalone security document or form part of the security created by a debenture (see: Documentation required to create a fixed charge below). Debentures also contain floating charges. For more information on floating charges, see: Taking security—floating charge—checklist and Practice Note: Fixed and floating charges. Preliminary questions before taking security by way of a fixed charge • Is a fixed charge the appropriate method of taking security? ◦ A fixed charge can be granted by...

Taking security—pledge—checklist

Taking security—pledge—checklist This checklist sets out the factors to consider when a company is proposing to grant a pledge. It assumes that an English or Welsh company will be granting a pledge to a lender situated in England or Wales. In this checklist: • the company granting the pledge is called the 'pledgor' • the entity to which the pledge is granted is called the 'pledgee', and • the document containing the pledge is called the 'security document' Preliminary questions before taking security by way of a pledge Is a pledge the appropriate method of taking security? Is the asset of a type that can be pledged? The types of assets which can be pledged are: • goods (ie tangible, moveable assets such as precious metals or other commodities), and • documents of title to goods or intangible assets where title to the asset can be transferred by delivery of a document (eg bills of lading, as to which, see Practice Note: Bills of lading and...

Structure of a facility agreement

This Practice Note is intended as an introductory guide to facility agreements (loan agreements) for those new to lending transactions. It discusses the usual components of a bilateral, committed facility agreement to a corporate borrower and links out to further information.For a more comprehensive introductory guide to lending transactions, see Practice Note: Introductory guide to lending and for introductory information on drafting and negotiating a facility agreement, see Practice Note: How to draft and negotiate a facility agreement.Where appropriate, this Practice Note highlights relevant provisions in Precedent: Facility agreement (term loan): single company borrower—bilateral—with or without security or a guarantee and the Loan Market Association (LMA) investment grade multicurrency term facility agreement with/without observation shift (the LMA facility agreement) (available to LMA members on the LMA website). Note the LMA facilities agreements are for use on syndicated rather than bilateral transactions—see Practice Note: Bilateral, syndicated and club arrangements. For clause by clause commentary, see Practice Note:Loan Market Association investment grade facilities agreement—commentary.The LMA has a series of helpful user guides...

Exemptions and reliefs from stamp duty

Exemptions and reliefs from stamp duty FORTHCOMING CHANGE relating to the modernisation of stamp taxes on shares framework: Following the call for evidence in 2020, the resulting outcome published in 2021 and consideration by the relevant HMRC and industry working group, the government again sought views (through a consultation opened on 27 April 2023 as part of Tax Administration and Maintenance Day and which closed on 22 June 2023) on proposals to modernise the stamp taxes on shares (STS) framework. The proposal is to introduce a single self-assessed stamp tax on securities, with the tax collected by CREST for transactions undertaken there or, for non-CREST transactions, through a new online HMRC portal that will provide a unique transaction reference number (UTRN) when the tax has been paid. Many of the key elements of the proposed single tax would adopt what currently applies for SDRT (for example, when the charge arises, adopting the current SDRT treatment of warrants and call options, making the buyer the liable person...

Discover our 33 Practice Notes on Bilateral loan

Legal opinion letter: English borrower entering into a secured bilateral facility agreement

Legal opinion letter: English borrower entering into a secured bilateral facility agreement [ To be printed on the headed paper of the lender’s lawyers ] To: [insert name and address of Lender] [insert date] Dear [insert name of Lender] [ Matter name/reference ] We have acted as legal adviser on English law to [insert name of lender] (the Lender) in connection with the provision of financing to [insert name of borrower, company number and registered office] (the Borrower) for a secured [and guaranteed ] [term loan and revolving credit facility] [describe facilities] of £ [insert amount] (the Transaction) and the negotiation, preparation, execution and completion of the documentation described in Schedule 1 (Documents examined) Paragraph 1 (Opinion Documents) (the Opinion Documents). We are providing this opinion letter to you, the Lender, pursuant to [Schedule 2] (Conditions Precedent) of the facility agreement between the Lender, the Borrower, [and Obligors] dated [insert date] (the Facility Agreement). [In this opinion letter, the Borrower, [insert name of...

Director’s certificate for a bilateral loan: guarantor/third party security provider

Director’s certificate for a bilateral loan: guarantor/third party security provider [insert date] To: [insert full name and address of lender] Dear [insert full name of lender] I am a director of [insert full name of guarantor or third party security provider] (the Company). I refer to: (a) the facility agreement dated [insert date of facility agreement] between [insert full name of borrower] (the Borrower) and [insert name of lender] (the Lender) as amended, novated, supplemented, restated or replaced from time to time in accordance with its terms (the Facility Agreement); [and] (b) [the guarantee dated [insert date of guarantee] between the Company and the Lender as amended, novated, supplemented, restated or replaced from time to time in accordance with its terms (the Guarantee)]; [and] (c) [the [share charge OR [insert type of security document]] dated [insert date of security document] between the Company and the Lender as amended, novated, supplemented, restated or replaced from time to time in accordance with...

Dive into our 8 Precedents related to Bilateral loan

How might the European Commission proposal for new conflict of law rules for assigned claims impact the secondary loan market?

How might the European Commission proposal for new conflict of law rules for assigned claims impact the secondary loan market? Summary This Q&A refers to the European Commission’s proposal for a Regulation on the law applicable to the third-party effects of assignments (the Proposal) published on 12th March 2018, which could have an impact on the market for trading participations in syndicated and bilateral loans. Both of the Loan Market Association (LMA) and the City of London Law Society made representations asking for the Proposal to be shelved or at least amended to accommodate current market practice in the secondary loan market. Their representations are available on their respective websites. It is fair to say that in its original form the Proposal would have disrupted the secondary loan market by making due diligence on the part of a buyer much more complicated for the reasons given below. The UK indicated on 9 July 2018, shortly after publication of this Q&A, that it would not opt in...

What are the Companies House registration requirements where an existing charge is transferred to a new chargee?

What are the Companies House registration requirements where an existing charge is transferred to a new chargee? This Q&A discusses whether a charge needs to be re-registered at Companies House if it is transferred from one chargee to another. When might a charge be transferred to a new lender? Common situations where a security interest may be transferred from one chargee to another include: • where a secured bilateral loan is transferred from one lender to another and the corresponding security is likewise transferred, or • a security agent or trustee in a syndicated loan resigns and a new one is appointed in its place The situations above should be distinguished from circumstances where a syndicated loan is sold down or transferred by syndicate lenders through loan transfers, assignments or sub-participations. In this situation, security is typically not transferred; instead, transaction security is granted to a security agent or trustee which holds the security on trust for and on behalf of the lenders from time to time....

See the 3 Q&As about Bilateral loan

Banking and Finance weekly highlights—7 December 2023

This week's edition of Banking and Finance weekly highlights includes: (1) our round-up of key cases from November 2023; (2) ARRC and EUR RFR WG announce the successful conclusion of their work on interest rate reform; and (3) updated guidance from Companies House on where to file paper documents.

LSTA publishes new form of Emerging Business Credit Agreement

The Loan Syndications and Trading Association (LSTA) has published its first bilateral loan agreement, the new form of Emerging Business Credit Agreement (EBCA). The EBCA is designed for a borrower that is an ‘emerging business’, ie a borrower that is no longer a new venture but is not yet an established company. LSTA anticipates that the EBCA could be useful for loans between US$25m–US$100m and it assumes the borrower is formed in the US and has US-based operations with limited, if any, foreign operations or assets located outside the US.

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