Tag Archives: defaulting lender

What to Do When a Lender Defaults – Part Two

In our last post on this topic, we discussed some basic provisions that provide protection for the bank group and the borrower if a lender in a syndicated loan deal defaults. Now let's take it to the next level. What kinds of things could you add to your loan agreements that would give you even more protection, and better rights, if a lender defaults?… Continue Reading

What to Do When a Lender Defaults

Lenders often express concern about potential defaults under their loan agreements - but it's usually default by the borrower that they're concerned about, not default by the lenders. However, with an increase in the number of bank failures and FDIC receiverships over the past year, we've begun to see an increase in the number of lender defaults in syndicated loan deals. If you're a lender (or a borrower) in a syndicated credit facility, you might well find yourself facing this situation at some point. What can you do - and what can't you do - when a lender defaults?… Continue Reading
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