Governing Law and Enforcement
Clause 38 provides that the Agreement will be governed by English1 law. Choosing English or New York law for loan agreements makes syndication of very large loans easier than many other governing laws because the market customarily deals in agreements under English or New York law. Another factor is the predictability of these laws. They respect freedom of contract to a large extent and are reluctant to interfere in negotiated agreements, making for a fair degree of certainty in relation to the effect of the agreement. Nevertheless laws of many other countries are increasingly acceptable and, in recognition of this, the LMA has produced template documents for French, German and Spanish law transactions.
KeywordsEnglish Court Exclusive Jurisdiction Arbitral Award Large Loan Loan Agreement
Unable to display preview. Download preview PDF.