Mechanisms Used in Common Law and Civil Law in Transfer of Syndicated Coursework

Mechanisms Used in Common Law and Civil Law in Transfer of Syndicated Dept - Coursework Example It is also subject to being added upon by legislation from a law making legislature such as parliament. Here previous rulings give guidance on current cases and are referred to. It originated in England and is still used commonly there and in former Great Britain colonies such as Australia, New Zealand Canada and in most countries of the commonwealth. Debt syndication is a situation where many lenders come together to offer credit to an individual entity, a conglomerate, or a government to spread out the debt risk among the participating lenders (called the syndicate) and share in the profits of the debt proportionately under a single syndicated loan agreement. This paper gives an analytical introspection into common and civil law in reference to transfer of syndicated debt. Loan amounts involved in syndicated debts are normally much larger than normal debts, and a default could have serious ramifications on a single lender, hence the need to spread the risk among many lenders. There is a lead borrower known as the ‘agent’ that does most of the administrative work concerning the loan or contributes proportionally larger debts.1 A syndicated loan can be provided as a term loan provision where a specified amount of loan is provided over an agreed time period of time called the ‘term. In addition, the borrower is usually allowed, under the given circumstances, a brief time after the loan availability to withdraw money up to the maximum limit and then repays in installments (amortization) or once at the expiry of the term (bullet payment). The syndicated loan may also be provided as a revolving loan facility where the borrower draws portions of the loan amount for a given period, for instance, within three to six months after which the repayment is due and can draw from the loan facility to repay the outstanding loan. This is a concept which is referred to as rollover loan. A syndicated loan can also be in the form of a general loan where new bor rowers can come into the agreement under specific circumstances and may also combine rollover loans and multiple term loans. This is a concept which is legally defined within the law.2 The borrower usually starts by approaching the lead borrower (agent) who advises the said borrower and contacts other lenders. The agent is the contact person with the borrower and represents the views of the syndicate. The agent also monitors how the borrower meets terms and conditions of the loan agreement. In addition, the agent keeps all records, collects all payments and interest from the borrower, and then pays both members of the syndicate at a fee. After a loan is approved with the requisite legal requirements satisfied, the borrower can then access the loan under the agreed terms. In this case, the borrower may wish to transfer the loan to a third party for a variety of reasons listed in the following part of the discussion. Acquire Capital The borrower may sell its interest in the syndicated loan if it is a long term loan facility to get capital or benefit from new better loan facilities. Reduce or Avoid Loss The borrower may experience difficulties and decide to sell its loan commitment to distressed debt specialists Capital

Self evaluation Assignment Example | Topics and Well Written Essays - 1000 words

Self evaluation - Assignment Example In the Critique of Practical Reason (2012), the philosopher considers the categorical imperative as an â€Å"act in such a way that the maxim of your will can always simultaneously hold as a principle of a universal legislation.† Another formulation can be found in his work titled The Groundwork of the Metaphysic of Morals (2011): â€Å"You use humanity, whether in your own persona or in the person of any other, always at the same time as an end, never merely as a means.† Kant believed that the categorical imperative is an obligatory law. All people should follow it regardless of their nationality, wealth, etc. Universality and strict adherence were the two main characteristics of the categorical imperative. Compliance with the categorical imperative is the highest human duty. Despite the humanistic nature of this idea, it might be dangerous, because in some cases, blind adherence to this principle can lead to tragic consequences. In this regard, I am a supporter of con sequentialism in the form of the theory of utilitarianism. Utilitarianism is based on the â€Å"the claim that an act is morally right if and only if that act maximizes the good† (Sinnott-Armstrong, 2011). In other words, attention is paid to the consequences of human actions to a large number of people. I believe that utilitarianism can be used both in social processes, and in business and professional environment. The theory of utilitarianism received its main development in John Stuart Mill’s ideas. Mill considered morality in its connection with the human’s ultimate goal, aimed at satisfying all human desires (Wilson, 2007). Happiness presented in a form of benefit was seen by Mill as a long-term pleasure. However, utilitarianism protested against the theory of egoism, based on the idea that people should strive to meet only their personal desires. The admissibility of pleasure or benefit is determined by their level of