Abstract
This study dealt with one of the most important parties to the syndicate loan contract which is the agent's bank, which is entrusted with the task of managing the daily loan. The task of this bank begins immediately after the end of the work of the organized bank and signing of the loan contract by its parties. The role of the agent's bank in the syndication loan was determined through this study, starting from appointing it through the tasks entrusted to it and ending with the termination of its powers and throughout the term of the loan, the role of this bank is a set of legal relations. The parties to the loan contract have certain specificity with respect to the responsibility of each party towards executing the contract in accordance with the agreed provisions and the required standards. This research requires the legal status of this bank in accordance with the different legal principles in the countries in which this loan originated, as well as the orientations of banks in the international markets. Accordingly, these relations were rooted in Jordanian law in the absence of legislation regulating syndicated loan contracts and the role of the agent bank. This study concluded that this bank is considered a special agent unless the Bank makes the same agent expressly - conclusively or factually - in a position that renders it liable to one of the parties for the duties of the agency for which the confidence of the secretariat is subdivided.
Highlights
Syndicated bank loans are one of the main sources of domestic and international financing for large public and private sector projects
This is clearly evidenced by reference to the model of the syndicated bank loan contract proposed by the Loan Market (LMA), where paragraph (2) of Article (26) provides for the duties entrusted to the agent bank under the title of "Duties of the Agent" which can be summarized in the following tasks: a
2.3.1.2 The Agent Bank Is a Special Agent. The owners of this trend believe that the agent bank in the syndicate loan works under a special type of agency, which does not condemn the duties of the trusteeship and trust of the participating banks unless they are explicitly stated in the syndication loan contract-when the need or circumstances so require- trust and confidence is an exception for him, and the argument of supporters of this trend is based on a number of reasons, including: a
Summary
Syndicated bank loans are one of the main sources of domestic and international financing for large public and private sector projects. This credit facility has allowed lenders - internationally - to provide financing amounts of approximately $ 4.5 trillion in one year, which is nearly one-third of the world's funding needs that year (Altunbas, et al, 2006). A group of banks and financial institutions cooperate to finance a borrower with its large amounts of financing that banks can not individually provide to lenders.. A group of banks and financial institutions cooperate to finance a borrower with its large amounts of financing that banks can not individually provide to lenders.1 It is a multi-bank transaction (Mugasha, 2007).. Vol 11, No 4; 2018 include tens or hundreds of lending banks (Adams, 2014), the participating banks that have signed the loan with the Borrower shall appoint the Agent to act on its behalf as an administrative agent in the day-to-day running of the Loan in the face of the Borrower and to act as a channel to transfer information and funds between the Borrower and the Lenders participating, and as a general coordinator among all lenders involved in the syndication loan to facilitate important decision making processes related to the loan (Wight, 2009)
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