September 29, 2014
Avidon explains how new form simplifies trade loan transactions
Michael Evan Avidon, co-chair of the Banking and Finance practice, addressed banking professionals at a webinar panel entitled, "Developing Industry Best Practices – the Master Trade Loan Agreement" on September 16, 2014. Sponsored by BAFT (The Bankers Association for Finance and Trade), the discussion focused on the recent release of form Master Trade Loan Agreements (MTLAs) for bank-to-bank trade loans.
At the request of the BAFT Global Trade Industry Council, a working group of international trade and legal practitioners – on both the lending and borrowing side - created the MTLA forms. Moses & Singer prepared the New York law MTLA and accompanying New York law template legal opinion.
The New York MTLA, now available on the BAFT website, uses a master format, including representations and undertakings, sanctions provisions, events of default, and alternative provisions for enforcement and dispute resolution by court litigation or arbitration. It is specifically aimed at short-term unsecured and uncommitted trade loans.
An interview with Lexis regarding this subject is provided below.