Accordion Feature, Regulatory Panel, and More
Accordion features have moved from the obscure and unusual to the more common in syndicated loan transactions. The concept is to provide for an ability of a borrower group to call for an increase in the credit facilities made available based upon reaching certain triggering events. The accordion features are most frequently participatory, that is lenders can chose to participate or not when the accordion is called upon. There are some accordion features which require additional advances but lenders will resist these as it will require the necessity of having standby credit available for the increased amount, the discretionary feature of an opt-in or opt-out accordion feature will be more acceptable to most regulated financial institutions participating in a syndicate. The accordion feature which has been included in these materials is a non-compulsory accordion feature for this reason. This white paper reviews the accordion feature, as well as the regulatory panel, defaulting lenders, increasing lender responsibilities, privacy and information sharing, intercreditor-subordination mechanics, and possessory collateral.
Alison R. Manzer
Cassels Brock & Blackwell LLP
- Partner in the Financial Services and Business Law Groups with Cassels Brock & Blackwell LLP
- Practice encompasses a broad range of commercial practice in the financial services sector, including financial institution regulation, corporate, and commercial lending, asset-based financing, securitization and structured finance, private equity, project finance, asset finance and leasing, business reorganization, syndicated lending, fund formation and governance, and related areas
- Practice involves multi-jurisdiction transactions where she has expertise in the structuring requirements of financing, investment, and securitization transactions to solve taxation, conflicts of laws, document structure, currency, and rate issues, among others
- Elected as a fellow of the American Bar Foundation
- Active with the American Bar Association, member of council, council committee on membership diversity and inclusion; past president, Association of Commercial Finance Attorneys; and Regent American College of Commercial Finance Lawyers
- Lectured and written extensively on legal matters, particularly dealing with financial institution issues
- Books – Canada/U.S. Commercial Law Guide; A Guide to Canadian Money Laundering Legislation; The Bank Act Annotated; A Practical Guide to Canadian Partnership Law; Banking and Credit Relationships, Real Estate Finance in Canada; Asset Based Lending in Canada; Law and International Finance; Halsbury's Laws of Canada - Banking and Finance; Practice Advisor (banking and lending) and Project Finance Canada, all published by national legal text publishers
- Recognized in the Canadian Legal Lexpert Directory each year starting with its first publication in areas including structured finance, asset/equipment finance, and leasing and banking and financial institutions; recognized as a leading lawyer by Chambers Global and Chambers Canada for banking and finance; The Best Lawyers in America and best lawyers in Canada for equipment finance law; the Guide to the World's Leading Banking Lawyers; IFLR 1000 Banking; Financial Services Legal 500 Canada Banking and Finance; Leading U.S./Canada Cross-Border Lawyer and the Guide to the World's Leading Women in Business Law (banking and finance); and a distinguished rating in the Martindale-Hubbell Law Directory
- Completed the Canadian Securities Course and the advanced securities programs, Canadian Investment Finance I and II with the Canadian Securities Institute
- Adjunct professor - Osgoode Hall Law School, York University, Toronto (International Finance)
- LL.B. law degree, LL.M. degree in banking and financial services, B.Sc. Hon. degree in biochemistry, MSc. degree (Bus Res), M.B.A., and DBA
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