Bilateral loan meaning

Checklist This Checklist sets out the principal direct and indirect tax considerations that a corporate borrower within the scope of UK corporation tax (a UK corporate borrower) ought to assess both prior to entering into a loan and over the life of that loan... It is designed to be used as a Checklist by the tax adviser to a UK corporate borrower, offering a concise outline of the relevant tax matters and providing space for the adviser to record notes... This Checklist proceeds on the basis that: the borrower is a company within the charge to UK corporation tax in relation to the loan, that is, either a UK tax resident company or a non‑UK tax resident company for which the loan is attributable to its UK permanent establishment (a UK PE), or attributable to the non‑UK resident company’s trade of dealing in or developing UK land; and the borrower and the lender are unconnected parties dealing at arm’s length ...

At completion At completion, funds are transferred between the parties and the deal is treated as completed. For a straightforward corporate facility, this typically involves a movement of monies from the lender to the borrower. In other financing structures, such as acquisition or asset finance, monies will ordinarily pass from the lender(s) to the borrower or to an existing lender (where its loan is being refinanced) and then from the borrower, acting as purchaser, to the seller of the business or asset. Following completion, the lender’s solicitors must address several legal and practical tasks. This checklist sets out the principal items for the lender’s lawyers to handle post-completion, including: perfecting security addressing any conditions subsequent complying with solicitors’ undertakings managing the original documents and compiling transaction bundles, and billing the client These matters are pertinent to most transactions and apply equally to bilateral and syndicated facilities. For further detail, see Practice Note: Post-completion phase in loan transactions...

Links to useful intercreditor materials This table sets out the principal checks a junior lender should make when assessing a simple intercreditor agreement between senior secured lenders, junior secured lenders and unsecured subordinated creditors. It is designed for readers with limited familiarity with intercreditor arrangements. The table highlights the core, commonly encountered points in a straightforward secured bilateral corporate loan and does not attempt to capture every potential negotiation issue, nor matters arising in specialist or more complex deals such as those in the leverage finance market. What is reasonable will vary with the nature of the transaction, the identity of the lender and the parties’ relative bargaining power. For specialist intercreditor topics, see the materials referenced below... Introductory materials Practice Note: Introductory guide to Intercreditor Agreements, covering typical provisions found in intercreditor agreements. Practice Note: How to draft and negotiate intercreditor arrangements in loan transactions, offering introductory guidance on drafting and negotiation. Precedent: Intercreditor deed-single company, a precedent suitable for a straightforward...

In this issue: Lending Security Sustainable finance Claims and remedies Sanctions Daily and weekly news alerts New and updated content Useful information Lending LMA publishes updated documents to reflect revised counterparts and bail-in clauses The Loan Market Association (LMA) has issued several updated templates to include a revised counterparts clause, aligned with the LMA Terms and Conditions for Par and Distressed Trade Transactions. As a result, delivery of an original counterpart is no longer needed, unless specifically requested within five business days of settlement. The changes also reference ‘assignment’ as well as ‘novation’ and, where relevant, add the LMA recommended bail-in clause. These updates exclude the Bilateral Netting Agreement, which remains subject to the existing counterparts and bail-in provisions in the LMA Standard Terms and Conditions. See LNB News 20/08/2025 18. Source: Loan Market Association—the authoritative voice of the EMEA market... Security ICAEW reports new Companies House ACSP requirements and verification rules ...

Loan market and developments Please provide a succinct outline of the current condition of the loan markets in your jurisdiction and any noteworthy recent developments. The US corporate loan market remains a significant pillar of the US economy. While the US loan market has undergone considerable change in recent years, it is still resilient and continues to be one of the most inventive and consequential areas within the US capital markets. Two principal components of the US corporate loan space are broadly syndicated loans (BSL) and private credit transactions. The BSL segment is a key funding source for medium- and large-sized companies, comprising loans where multiple banks and non-bank financial institutions extend finance through a syndicate of lenders. Private credit typically involves lending by non-bank lenders on a bilateral basis or by a small cadre of lenders (often termed ‘club deals’). Both segments have seen strong growth and transformation over the past several years. Broadly Syndicated Loans Although private credit often captures more media focus, syndicated lending...

Most lending deals involve the use of formal legal opinions issued by counsel. Commonly, they are required as a necessary condition precedent to funding, or before the finance documents are executed and put into effect. The recipient, most often the lender, receives confirmation of specified legal issues connected with the loan transaction at hand. While widely encountered across numerous lending structures, they can be challenging in both legal and practical terms, and should therefore be negotiated and settled at the earliest possible stage of the transaction process, during initial stages of the process itself...

Practice Note This Practice Note sets out the principal drafting, negotiating and legal considerations for a typical bilateral debenture issued for a particular deal with a single security provider. It is equally applicable to syndicated and all monies debentures, and to arrangements involving several security providers. Here, the security provider is called the Chargor and the secured party the Lender. It also signposts answers to commonly asked questions. A debenture is commonly used when the lender seeks security over a company’s entire asset base. For introductory guidance on debentures—what a debenture entails and who may grant one—see Practice Note: Key features of debentures. For broader guidance on preparing and negotiating security documents, including selecting an appropriate precedent and early-stage considerations, see Practice Note: How to draft and negotiate security documents in loan transactions. Debentures vary in structure, yet they tend to share similar provisions and usually adopt a common core format. For ease of use, the corresponding clause references are included in our Debenture: single company chargor—bilateral—specific monies. This...

This Agreement, dated [ • ] 20[ • ], is entered into between the following parties: Parties [ insert name of Borrower ], a company incorporated in England and Wales with registered number [ insert company number ], whose registered office is at [ insert address ] (the Borrower); and [ insert name of Lender ] of [ insert address ] (the Lender). Background (A) [ insert description of background to transaction ]. (B) The Lender has agreed to provide the Facility (as defined below) to the Borrower on the terms and conditions contained in this Agreement...

This Deed is dated [ insert day and month ] 20[ insert year ] Parties [ insert name of Assignor ], a company registered in England and Wales with company number [ insert company number ], whose registered office is at [ insert address ] (the Assignor); and [ insert name of Lender ] of [ insert address ] (the Lender). Recitals: (A) The Lender has agreed to provide a loan facility to the Assignor on the terms and conditions contained in the Facility Agreement (as defined below). (B) Availability of the loan facility is conditional upon the Assignor executing this Deed to create security in favour of the Lender in respect of the Secured Obligations (as defined below)...

This Deed is executed on [ insert day and month ] 20[ insert year ] Parties [ insert name of Chargor ], a company incorporated in England and Wales with registered number [ insert company number ], with its registered office at [ insert address ] (the Chargor); and [ insert name of Lender ] of [ insert address ] (the Lender). Recitals: The Lender has agreed to provide a loan facility to the Chargor on the terms and conditions contained in the Facility Agreement (as defined below). As a condition precedent to the availability of that facility, the Chargor must enter into this Deed to create security in favour of the Lender for the Secured Obligations (as defined below)...