August 11, 2021 - Many articles have been written already about the important decision of Judge Furman of the SDNY in In re Citibank August 11, 2020 Wire Transfers (a.k.a. “Revlon”). That decision raised a number of issues for the loan market, and the LSTA assisted the market in addressing those issues by drafting a new erroneous payment provision (“EPP”) for credit agreements to limit the risk of a Revlon type situation—where an agent bank mistakenly pays lenders and cannot recoup those funds—happening again. In this article, LSTA’s Bridget Marsh reviews the LSTA draft form of EPP.
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Membership in the LSTA offers numerous benefits and opportunities. Chief among them is the opportunity to participate in the decision making process that ultimately establishes loan market standards, develops market practices, and influences the market’s direction.