Law360, New York (December 6, 2012, 11:16 AM EST) -- Subscription credit facilities (a facility) have become a popular form of financing for private equity and real estate funds (funds). The facility's lenders (the lenders) are granted a security interest in the uncalled capital commitments of the fund's limited partners (the investors) and the lenders rely on the investors' obligations to fund capital contributions as the primary source of repayment. Governmental pension plans, state endowment funds, sovereign wealth funds and other instrumentalities of foreign and domestic governments are frequent investors that may possess certain sovereign immunity rights against enforcement proceedings rooted in the common law concept that "the King can do no wrong."[1]...