How to Cut Risk of Dealing with a Defaulting Lender
October 7, 2008
Eric L. Berg
DOWNLOAD PDF: How to Cut Risk of Dealing with a Defaulting Lender
In the wake of recent bankruptcy filings by several prominent financial institutions, there's a growing interest in changing standard credit documentation to address the risks of defaulting lenders and non-performing administrative agents. Here are credit agreement provisions that financial institutions, acting as swingline lenders and letter of credit issuers, can require to protect themselves against the risk of a defaulting lender. Also covered are recommendations on dealing with the risk of an administrative agent becoming a defaulting lender or not complying with its credit agreement obligations.
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