Syndicated loan in financing, the legal position of the lead bank and the agent bank : Tyne Bank a simulation case study

Abstract EN

In the last few decades there has been a debate on the so-called syndicated loans, specifically, commentators focused on, firstly, the nature of the relationship between the so-called the arranger/agent bank of the syndicate and the other participants' lenders.

And secondly, the rights and duties of each party in the syndicate to determine whether a fiduciary duty is owed by the manager/agent bank to the syndicate.

This paper is seeking to serve as an advisor for a Bank called Tyne, this Bank has been invited to participate in a syndicated loan.

The focus of the advice will be on two major issues.

Firstly, explaining the roles of both the lead Bank of the syndicate and the agent Bank of the syndicate.

And secondly, securing and protecting Tyne Bank's interests by creating a shield of essential provisions that should drafted in the syndicated loan contract.

Therefore, in order to address the issue adequately, this document will be divided into many parts as follow: Firstly, a brief background, secondly, a relevant literature investigating the syndicated loan by examining previous work on this issue, for example, critics views and case law.

Thirdly, the role of the arranger bank and the agent bank.

Fourthly, detailing the core provisions that must be included in the syndicated loan contract to secure a protection to Tyne Bank's interests.

And finally, draw a conclusion by pulling and narrowing all the said in this paper to form an advice to present it to Tyne Bank.