Intra Group Facility Agreement

To lend money under an intra-group loan agree­ment, the bor­rower must pay a set amount of inter­est to the lender and repay the loan at cer­tain matu­ri­ties. Given the intra-group rela­tion­ship between the bor­rower and the lender, an intra-group credit agree­ment does not con­tain sig­nif­i­cant insur­ance and guar­an­tees, nor any com­mit­ments or restric­tions on the part of the bor­rower. Instead of trans­fer­ring the ben­e­fit of an agree­ment to a third party, it may hap­pen that the orig­i­nal par­ties instead wish to ter­mi­nate their mutual oblig­a­tions under that agree­ment and that they actu­ally draft them, with the third party fol­low­ing in the foot­steps of one of the orig­i­nal par­ties. This is the coro­n­avirus (COVID-19): dur­ing the cur­rent pan­demic, laws and changes in prac­tice and pro­ce­dure have been intro­duced in the courts, the fol­low­ing effects:•Detention procedure•Cancellation of busi­ness leases for non-payment of rent•The right of a lessor to serve a [sub­sidiary within the mean­ing of sec­tion 1159 of the Com­pa­nies Act 2006 OR sub­sidiary within the mean­ing of sec­tion 1162 of the Com­pa­nies Act 2006]. This intra-group (on-demand) loan agree­ment gov­erns the grant­ing of a loan at the request of a par­ent com­pany to one of its sub­sidiaries. It should be used when a par­ent com­pany lends money to a sub­sidiary beyond which it has full knowl­edge and con­trol and wishes to doc­u­ment the basic terms of the agree­ment in a sim­ple doc­u­ment, in order to avoid pos­si­ble mis­un­der­stand­ings about the loan that may oth­er­wise arise if there are no for­mal records beyond the account­ing records. The par­ent under­tak­ing must ful­fil its oblig­a­tions under intra-group loan agree­ments on all essen­tial points. This prac­tice note deals with the law gov­ern­ing the pro­ce­dural law of arbi­tra­tion (the law of the curia or lex arbi­tri) and how it is gov­erned by the law of Eng­land and Wales (Eng­land and Eng­lish are used as a con­ve­nient short­cut). The pro­ce­dural law of arbi­tra­tionThe pro­ce­dure The bor­rower has obtained it; (i) none of the essen­tial terms of intra-group lend­ing agree­ments shall be mod­i­fied, ter­mi­nated or can­celled with­out the prior writ­ten con­sent of the agent (on behalf of the required lenders), and (ii) intra-group loans shall be sub­ject, in terms of pay­ment and pri­or­ity, to any debt incurred or con­tracted under this Agree­ment. Buy this spe­cific tem­plate and gen­er­ate a unique and per­son­al­ized doc­u­ment in min­utes. **Trial ver­sions are avail­able for all Lex­isPSL and Lex­is­Li­brary con­tent, with the excep­tion of com­pli­ance prac­tice, prac­tice and risk man­age­ment, and com­pli­ance, sub­scrip­tion plans are tai­lored to your spe­cific needs. To dis­cuss exper­i­ment­ing with these Lex­isPSL ser­vices, please send an email to cus­tomer ser­vice via our online form.

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