To the extent that a party is aware of an atypical commercial term important to that party or wishes to deviate from the general terms of sale of the LSTA or LMA, that party must clearly and unambiguously state the non-standard conditions at the time of trading. Given that the secondary credit market has continued to dwindle and tariffs have solidified, it will be difficult for some to say that a negotiation has not been agreed upon once the essential terms of trading have been agreed upon. If, for example, the trade involves the sale of a revolving bond (with future financing obligations) and the buyer acknowledges that he may not be able to settle a transfer because he is unable to obtain the borrower`s agreement in accordance with the credit contract, the buyer may agree with the seller at the time of negotiation. , the need to reserve guarantees (and if so, how much security will be required.10 This is not the case for a struggling trade in the LSTA. As noted above for concerned LSTA trades, after confirmation of the LSTA`s troubled trade, the parties will still be required to enter into a complementary purchase and sale agreement that is the subject of negotiations. Therefore, where, between the date of the trade and the settlement date, there has been something that a party has deemed necessary to change the standard terms, it is possible to negotiate these terms before the count. With respect to trades conducted in accordance with the LSTA documentation, the applicability of oral transactions was codified in New York in 2002, when these transactions were carried out by the anti-fraud, subject to certain requirements.3 The LSTA`s commercial confirmations also provide that once they have made a commercial confirmation of the LSTA with the standard terms of these credit transactions. , the parties agree to agree on any other transactions between them regarding the purchase or sale of bank loans under the terms (if by telephone) 4 In the case of LSTA and LMA transactions, the only other operational document to be agreed upon upon completion of the transaction (apart from a financing scope with the price calculation) will be , essentially a transfer and purchase agreement or a transfer certificate in the form given as an extract from the underlying credit contract. Therefore, after the execution of the transfer contract and the payment of the purchase price, the rights and obligations of the party to the payment of the transfer of the loan are respected and fulfilled. The borrower`s loan appears to expand the borrowers` ability to prevent lenders from transferring credits through participation, even if the participation is authorized by the current credit agreement.i This decision has the potential to create uncertainty in the secondary credit market and should lead to the seller, under an LMA loan , rejects its buyer for all former sellers of the loan with respect to certain guarantees related to certain guarantees. , the buyer has reinstated its direct seller because of a breach of these insurances, whether the violation is related to an act (or inaction) or the status of the seller concerned. This documentation method offers some advantages and disadvantages for purchasers compared to LSTA trades.

An obvious advantage for such a buyer is that a buyer who obtains credits according to the LMA documentation must pay less attention to transactions in difficulty. According to the LMA`s troubled documentation, the rights to previous transfer contracts are not transferred, so no other predecessor transfer documents will be made available to the purchaser for verification. One drawback is that the buyer`s recourse is entirely limited to his immediate seller. Therefore, to the extent that the seller is not solvent, the previous representations are of limited value.