ERISA meaning

STOP PRESS The Loan Market Association (LMA) has released refreshed editions of the standard terms and conditions for Par and Distressed Trade Transactions, the complete set of Funded Participation and Risk Participation Agreements, and the Secondary Debt Trading Documentation User Guide, with effect from 17 March 2026. The changes remove LIBOR references, update IBOR rate definitions and the Target2 definition, and revise ERISA representations to incorporate additional exemptions to the prohibited transaction rules under ERISA and the US Internal Revenue Code. The revised documentation is available exclusively to LMA members, accessible via the LMA’s Documentation Hub. These publications are updated versions issued by the LMA. Summary A core principle of trading under the LMA protocol is that ‘Trade is a Trade’; i.e. once a trade is struck—including an oral contract agreed by telephone—it is binding, and subsequent developments, even if adverse to one or both parties, do not entitle either party to cancel or ‘break’ the trade. By way of example, a failure to secure consent for...

STOP PRESS: The Loan Market Association (LMA) has issued refreshed versions of the standard terms and conditions for Par and Distressed Trade Transactions, the complete suite of Funded Participation and Risk Participation Agreements, and the Secondary Debt Trading Documentation User Guide, all coming into force on 17 March 2026. Changes comprise the deletion of LIBOR references, updates to IBOR rate definitions and the Target2 definition, plus revised ERISA representations that fold in further exemptions to the prohibited transaction rules under ERISA and the US Internal Revenue Code. The new materials are accessible solely to LMA members via the LMA’s Documentation Hub. Summary A core principle of trading under the LMA protocol is that ‘a Trade is a Trade’: once a trade is concluded (which may include an oral agreement reached by telephone), it is binding, and later events that may disadvantage one or both parties do not permit either side to rescind or ‘break’ it. For instance, not securing consent for an assignment or novation of the...

In this issue: Lending Security Shipping finance Sustainable finance Debt capital markets Structured products and securitisation Claims and remedies Daily and weekly news alerts New and updated content Useful information Lending LMA issues refreshed standard terms for par and distressed trading The Loan Market Association (LMA) has released revised versions of the standard terms and conditions for Par and Distressed Trade Transactions, the complete set of Funded Participation and Risk Participation Agreements, and the Secondary Debt Trading Documentation User Guide. The updated terms will apply from 17 March 2026. Changes include removing LIBOR references, updating IBOR rate definitions and the Target2 definition, and refining ERISA representations to add further exemptions to the prohibited transaction rules under ERISA and the US Internal Revenue Code. See: LNB News 16/02/2026 39. Source: LMA Documentation Hub. For the latest LMA updates, see Practice Note: Loan Market Association (LMA)—latest news on documentation. Security Saluja v Vyman...

STOP PRESS: The Loan Market Association (LMA) has released refreshed editions of the standard terms and conditions for Par and Distressed Trade Transactions, the complete set of Funded Participation and Risk Participation Agreements, and the Secondary Debt Trading Documentation User Guide, with all changes taking effect from 17 March 2026. The changes cover deletion and removal of LIBOR references, detailed amendments to IBOR rate definitions and to the Target2 definition, together with revised ERISA representations that incorporate further exemptions from the prohibited transaction rules under ERISA and the US Internal Revenue Code. The refreshed documents are accessible exclusively to LMA members via the LMA’s Documentation Hub. Sub-participation enables a lender to pass its exposure in a loan to another entity. Within the loan market, it functions as an alternative to assignment or novation. For information on loan transfers in a lending context, see Practice Note: Introductory guide to loan transfers. This Practice Note: sets out what is meant by funded sub-participation, risk-participation and credit default swaps ...

Practice Note This Practice Note outlines the principal legal issues to consider when a company extends a public offer of securities to investors in the United States of America (US), including: the available exemptions from SEC registration the elements that shape disclosure other regulatory considerations influencing who may or will buy the offered securities, eg: the US Investment Company Act of 1940 the Employee Retirement Income Security Act of 1974 US tax rules the US Securities Exchange Act of 1934 the financial intermediaries permitted to offer the securities in the United States whether US investors expect to hold the non-US issuer’s securities directly or through American Depositary Receipts the publicity restrictions that must be applied the role of any US advisers A company and its advisers may conduct a placement of securities in the US in several ways, eg: an offer...

STOP PRESS: The Loan Market Association (LMA) has issued refreshed editions of the standard terms and conditions for Par and Distressed Trade Transactions, the full and complete sets of Funded Participation and Risk Participation Agreements, and the Secondary Debt Trading Documentation User Guide; all of which take effect from 17 March 2026. The changes include the deletion of LIBOR references, updates to IBOR rate definitions and the Target2 definition, and revised ERISA representations that incorporate further exemptions from the prohibited transaction rules under ERISA and the US Internal Revenue Code. The revised documentation is accessible to LMA members only via the LMA’s Documentation Hub. Is loan trading on the secondary market a regulated activity? The UK position The use of information within the UK loan secondary debt market remains somewhat unclear. The UK regulatory framework oversees firms that deliver services to clients connected to ‘financial instruments’ and the markets where those instruments are traded. Loans are not treated as ‘financial instruments’ (commonly taken to include shares, bonds,...

Project [ insert name of project ] Preliminaries Heads of Agreement/Equity Term Sheet Manager questionnaires for [ insert names ] Management business plan [ Managers’ tax clearances ] Investment Papers Investment agreement and articles of association [ Manager charging shares: letters from manager and bank ] [ Management rights letter (ERISA funds) ] [ Employee incentive scheme documents ] [ New service agreements for managers: [ insert names ] ] Managers’ disclosures: letter and disclosed documents Board and Shareholder Papers Newco board minutes: incorporation; handover; completion; post-completion Shareholder resolutions: waiver of rights; new or revised articles; share issues; completion; post-completion Miscellaneous [ Foreign legal opinion ]; statutory books for Newco (to completion) [ Insurance: keyman for [ insert names ]; directors’ and officers’ liability; business ] Bankruptcy/director disqualification searches: [ insert names ]; insolvency search: Newco ...