ABSTRACT
The purpose of this chapter is to provide an overview of business lending and of the most significant legal issues arising out of loan facilities, without entering into a detailed examination of corporate finance which lies beyond the scope of the present text. The discussion addresses the most important contractual terms for unilateral and syndicated loans and the reasons for loan syndication. Then, the discussion focuses on the most common types of security interests in the context of business lending and the contractual terms that are particular to secured lending. Lastly, the chapter examines the principal legal techniques available to transfer a claim arising from a loan agreement and the typical structure of loan securitisation. As consumer credit is the subject of special legislation aiming to protect consumer borrowers, it is examined separately from business lending. The principal aim of this chapter is to analyse the various common ways in which banks advance credit to retail customers and the legal protection available to the latter. To that effect, the discussion explores the legal definition of a consumer borrower before focusing on overdrafts, credit cards, personal loans and consumer mortgages. Finally, the discussion turns to the rules applicable to transactions at a distance and credit reference agencies.
