Today the LSTA has published a Market Advisory addressing the application of the QFC Stay Rules to credit agreements. The QFC Stay Rules are designed to improve the resolvability and resilience of U.S. global systemically important banking organizations (G-SIBs) and the U.S. operations of foreign G-SIBs by mitigating the risk of destabilizing closeouts of qualified financial contracts (QFCs). The Rules require GSIBs to include new language in certain credit agreements if the related loan documents also support the borrower’s obligations under swaps or other qualified financial contracts.
QFC Stay Rules and the LSTA Rider Presentation presented by Gabriel Rosenberg, Partner at Davis Polk and Erika White, Counsel at Davis Polk. Intro by our Bridget Marsh.
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