Spotlight On Keepwells And Excluded Obligations

Law360, New York (April 10, 2013, 2:09 PM EDT) -- There has been considerable discussion in syndicated lending circles recently regarding how to account for a new swap “clearing requirement” that significantly impacts loan documentation and became enforceable on March 31, 2013. This article will focus on two particularly important means for lenders to address the clearing requirement in loan documentation so that the credit support of guarantors of swap obligations is maximized without risking the enforceability of the guarantees and collateral pledges provided in the loan documents: “keepwells” and excluding guarantee obligations of entities that are not “eligible contract participants”[1] (ECPs). We will also consider some other areas of loan...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!