What DDJ Management Means For Lenders

Law360, New York (February 25, 2011, 2:51 PM EST) -- Representations, which are statements of fact, and warranties, which are promises that such statements are true and correct, are fundamental to loan documentation because they provide a means for lenders to elicit information from borrowers, support assumptions made in the underwriting process and allocate risk in the loan transaction.

The process of negotiating representations and warranties may also affect the structure of a transaction. Often during the course of negotiating loan documents, a lender may find additional subsidiaries that should be obligors or be dissolved in...
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