While, international finance aims at «the undisturbed flow of funds from 'savers' to 'borrowers' regardless of national borders», the legal aspects of international finance encompass those «legal risks and protections available to those participating in those markets» .
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Development
- Importance of Capital Markets
- Legal Risks
- Loan Finance
- Common Features of the Loan Agreement
- Syndicated Loans
- LMA Documentation
- Bonds
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This assignment aims to discuss and critically describe the form of loan agreements and their common features. The paper explores the impact of globalization on the financial sector and the legal considerations within international finance. It also examines the various types of loans, including syndicated loans and bonds.
- Globalization and its impact on the financial sector
- Legal risks in international finance
- Features of loan agreements
- Types of loans: Syndicated loans and bonds
- The role of capital markets in economic development
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction
The introduction lays out the context of the assignment, discussing the impact of globalization on financial markets and the role of financial law in addressing the needs of commercial undertakings and private individuals. It defines loan agreements and outlines the objectives of the assignment.
Development
Importance of Capital Markets
This section highlights the importance of capital markets in promoting economic efficiency by channeling funds from savers to borrowers. It emphasizes the growing role of private capital in market development, particularly in developing countries, and the benefits of foreign investment and savings.
Legal Risks
The legal risks associated with international agreements are discussed, emphasizing the challenges of enforcing cross-border credit contracts due to the lack of a truly international law of contracts and a transnational judicial body. The importance of country risk assessment is stressed.
Loan Finance
Common Features of the Loan Agreement
This section focuses on the common features of loan agreements, including the parties involved, the key features of the agreement, and the various provisions, representations, warranties, and covenants that are typically included.
Syndicated Loans
The section explores syndicated loans, explaining how they allow banks in one jurisdiction to finance projects in other jurisdictions. It highlights the benefits of syndicated loans, such as risk management and efficiency in negotiating terms with a group of lenders.
LMA Documentation
This section briefly discusses the Loan Market Association's (LMA) documentation, which provides standardized terms and conditions for loan agreements in the secondary market, helping to reduce negotiation time and costs.
Bonds
The section differentiates between bonds and syndicated loans, emphasizing the transferability of bonds and the broader range of investors involved.
Schlüsselwörter (Keywords)
The key terms and concepts explored in this assignment include globalization, financial law, loan agreements, international finance, capital markets, syndicated loans, bonds, legal risks, country risk assessment, representations and warranties, covenants, and LMA documentation.
- Citation du texte
- Jennie Robinson (Auteur), 2015, The form and features of loan agreements, Munich, GRIN Verlag, https://www.grin.com/document/432710
