Primary Market Committee
The Primary Market Committee is the only committee at the LSTA which focuses on current legal issues in the primary market. In 2014, the Committee will work on expanding the LSTA’s Model Credit Agreement Provisions. The expanded provisions will include language relating to sponsor and borrower buybacks, amend and extends, disqualified institutions, and cashless roll mechanisms. Membership of the Committee is open to all LSTA members.
The Trade Practices and Forms Committee is the largest LSTA Committee with more than 300 members. The Committee seeks to develop market conventions that govern trading and settlement of par and distressed loans. Since its inception, the Committee has worked to identify key market issues and to build consensus toward resolving those issues through the drafting and adoption of standard documents and market practices. The Committee’s membership is open to all members and currently includes business people, lawyers, and closers. It is recommended that each member of the LSTA nominate at least one person to be on this Committee so that the member is kept informed about secondary trading practices and developments, credit-specific market advisories, and documentation revisions.
In 2010, the LSTA published Market Standards for Flood Insurance Processes in Syndicated Lending. As discussed in the LSTA Guidelines, when a loan secured by improved real property in the U.S. is made, extended, increased, or renewed, any properties falling into a special flood hazard area generally must have flood insurance for the life of the loan. The LSTA Guidelines are intended to establish standard procedures for administrative agents with respect to (i) obtaining documents which evidence compliance with the above regulations and (ii) adequate ongoing monitoring by lenders in the syndicate of such compliance. Since publication of the Guidelines, attention has continued to be focused on this area, and the LSTA has, therefore, reconvened the Flood Working Group to consider whether Guidelines should be supplemented.