Characteristics Of A Loan Agreement
Credit agreements are usually written, but there is no legal reason why a credit agreement should not be a purely oral agreement (although oral agreements are more difficult to enforce). The Loan Market Association has compiled its LMA documentation, such as for example. B standard conditions or Trade Confirmation and Settlement Letter, for the use of “institutions which trade in holdings in credit agreements on the secondary market”. The advantage of these documents is “to help the borrower and lenders reduce the time and right to negotiate common provisions in the loan agreement (Ce Fi MS, unit 2, p.22). The credit agreements of commercial banks, savings banks, financial companies, insurance companies and investment banks are very different and all have a different purpose. “investment banks” create credit agreements that meet the needs of the investors whose funds they wish to attract; “Investors” are always demanding and accredited organizations that are not subject to bank supervision and are subject to the need to respect public trust….