Jurisdiction(s):
United Kingdom

Key definition

Sanction definition

What does Sanction mean? A sanction is the court’s consequence for a party’s failure to comply with a rule, practice direction or order. It is a descriptive procedural term used across England & Wales, Scotland, Northern Ireland and Ireland; powers derive from each jurisdiction’s rules and case law. Sanctions include: strike‑out or dismissal of a claim or defence; debarring a party from evidence or participation; the automatic effect of an unless order; adverse or wasted costs; and, for serious breaches, contempt of court (fines or committal). In England & Wales, relief from sanctions is under CPR r 3.9 and Denton, focussing on seriousness/significance, reasons, and all...

Sanctions risk in loan and facility agreements: LMA/LSTA drafting, due diligence, default and prepayment, sanctioned lenders, payment restrictions and the EU Blocking Regulation

Published by a LexisNexis Banking & Finance expert

Practice notes

This Practice Note looks at:

the challenges sanctions may create for lending transactions
key facility agreement terms to consider in a sanctions context
the approach to sanctions of the loan Market Association (LMA) and the Loan Syndications and Trading Association (LSTA)
the effects of the EU Blocking Regulation

Conflict in Ukraine

Focus on sanctions has intensified following additional measures introduced in response to the conflict in Ukraine. We have issued the Practice Note: Sanctions—FAQ for banking & finance lawyers, which examines those measures and the potential effects on finance transactions and loan agreements. It also includes links to detailed material. See also the Financial sanctions collection featuring Practice Notes, news and trackers. The remainder of this Practice Note considers more general points when drafting sanctions provisions in loan agreements.

Where can I find information on financial sanctions?

Our Financial sanctions collection is a comprehensive, interactive tool to help users find and navigate relevant content when advising on financial sanctions. It contains introductory resources giving an overview of the overarching international...

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Web page updated on 21/05/2026

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