Tag Archives: good faith

And Now, Loan Participations from a UK Perspective

In response to my post yesterday on a recent New York case prohibiting a loan participation without borrower consent, my partner Lucy Newcomb from Reed Smith's London office provides a UK-law perspective on the case. It is interesting to note that there is no such thing as the doctrine of good faith and fair dealing in the UK, so we could expect a similar case to have a different outcome in a UK court.… Continue Reading

Loan Participations – To Consent or Not To Consent?

Here's an easy one for you: How many of you (lenders) think that you should have to get consent from the borrower to sell a participation in a loan? I'll take the safe bet and guess "none" -- since it's such standard practice for lenders to sell participations without borrower consent. Really, you'd be hard pressed to find a credit agreement that said otherwise. With that in mind, let's take a quick look at a recent case from a federal court in New York that said just the opposite.… Continue Reading