Michael Evan Avidon Worked With The Loan Syndications and Trading Association In Improving Certain Letter of Credit Related Provisions

August 5, 2021

Michael Evan Avidon, the Co-Chair of Moses & Singer’s Banking & Finance practice group and also the Co-Chair of the American Bar Association’s (ABA) Letters of Credit Subcommittee, recently gave LSTA suggestions to improve the letter of credit-related provisions of the LSTA model form of syndicated revolving credit agreement.  The Loan Syndications and Trading Association (LSTA) is the U.S.’s premier industry platform for participants in the syndicated lending market, including loans and letters of credit.

That form or variations of it is used in many credit facilities.  Most of the suggestions arose from Moses & Singer’s Banking & Finance team’s decades of transactional experience in this area as well as its handling of letter of credit-related litigations and other disputes.  The suggestions also included ideas from other ABA members and from participants in the Institute for International Banking Law & Practice (IIBLP) and the Bankers Association for Finance and Trade (BAFT).  LSTA has accepted most of the suggestions and has distributed a draft revised model form to its Primary Market Committee for review and any further comments before publication in final form.  The revised form also includes LIBOR replacement provisions and other updates.