The Role of the Agent Bank and the Specificity of Its Legal Status in the Syndicate Loan (A Comparative Study)


  •  Mohammed Shein Al-kateb    
  •  Noor Akief Al-Dabbas    
  •  Qais Enizan Al-Sharaiyri    

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.



This work is licensed under a Creative Commons Attribution 4.0 License.
  • Issn(Print): 1913-9047
  • Issn(Onlne): 1913-9055
  • Started: 2008
  • Frequency: quarterly

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