The range of rules and issues that may affect individual lenders, including potential aspects of conflict-of-laws legislation, must be addressed on a transaction-specific basis. Where applicable, insurance and covenants are limited to non-conflicting sanctions or rules or apply only to lenders who can benefit from them; In addition, the applicable sanctions provisions could be set out in a separate subsidiary letter in favour of individual lenders, designed in such a way that a breach of that agreement does not constitute a breach of the facility itself syndicated. While European market participants have become familiar in recent years with the main risks, areas of contention and possible contractual compromise positions, there are still no “standard” contractual assurances on sanctions for the European market, and the Loan Market Association (LMA) has indicated that it does not intend to develop recommended formal provisions for its standard facility documentation. It considers this to be a difficult issue, which can be the subject of general guidelines, given the complexity and extent of the problems and the rules applicable to individual lenders. Therefore, the exact wording of a representation and/or obligation is determined on a case-by-case basis and depends on the transaction, the parties involved and the sanctions that the parties wish to take. The AMA also proposes that the parties be able to consider whether amendments and waivers regarding such provisions (if they contain) should be matters that require the agreement of all lenders, something that some lenders are currently insisting on. EU sanctions generally apply to “EU people” who are all people in the European Union; any person having the nationality of a Member State; any legal person, entity or entity established in a Member State or operating within the European Union; and any person on board an aircraft or ship under the jurisdiction of a Member State. Companies established outside the EU are not required to comply with EU sanctions, except for transactions carried out within the EU. As part of its common foreign and security policy, including the implementation of the United Nations Union, the EU applies sanctions and restrictive measures against third countries, institutions and individuals. . . .
Sanctions Provisions In Loan Agreements