What are step-in rights?
Step-in rights allow one party to take the place of another, such as a funder stepping in to the shoes of an insolvent developer to complete a project. Note that Practical Law’s collateral warranties and schedules of third party rights already include step-in rights in favour of a funder.
What are lender step-in rights?
In this context, ‘step-in’ refers to the ability of the lenders, or a third party nominee of the lenders, to step into the role of the Project Company to give it the opportunity to rectify the issues.
What is contract collateral warranty?
A Collateral Warranty is a contract under which a consultant, a building contractor or a sub- contractor warrants to a third party that is has fulfilled its obligations under its professional appointment, building contract or sub-contract.
What is a direct agreement in project finance?
Direct agreements are very common in project finance transactions. A direct agreement is an agreement which gives the lenders to the project direct rights in respect of certain key project documents. Those rights are explained in Direct agreements in project finance transactions—key provisions.
What is step in Novation?
A Step-In Agreement is a novation agreement between two parties and their Nominee who is subject to conditions precedent, being default by one of the parties and the service of a Step-In Notice. They are used to enable continuity with one party being replaced by a Nominee.
What is a step in deed?
Step-in deed: The franchisor may require you and landlord to sign a step-in deed. This entitles the franchisor to step in and take over the lease in certain circumstances, such as you breaching the lease or franchise agreement, or when the franchise agreement ends.
Do Collateral warranties cost money?
There is no reason in law why the collateral warranty obligations should be given by a professional person or a contractor free of actual consideration in money. Although it is unusual to agree such a ‘signing fee’, the reality is that the developer, fund and tenant are gaining real benefits through a warranty.
How long do collateral warranties last?
Ordinarily a party to a deed (collateral warranties are usually executed as deeds) has 12 years from the date of a cause of action arising to bring a contractual claim before that claim becomes statute barred by limitation.
What’s a direct agreement?
Direct agreements are used in project finance transactions to provide lenders with protection should the project get into difficulty. The parties to the direct agreement include the project company itself and the counterparty to the project document to which the direct agreement is collateral to.
How is a project financed?
The debt and equity used to finance the project are paid back from the cash flow generated by the project. Project financing is a loan structure that relies primarily on the project’s cash flow for repayment, with the project’s assets, rights, and interests held as secondary collateral.
When was the Insolvency Act 1967 enforced in Malaysia?
Malaysia Department of Insolvency (MdI) hereby notified that The Insolvency Act 1967 has been enforced on 6th October 2017. With the enforcement of the Act, Bankruptcy Act 1967 is now…
Which is the best restructuring case in Malaysia?
To complete the series, I now feature the top five restructuring and insolvency cases in Malaysia for 2019. In 2019, we saw further developments interpreting the insolvency-related provisions of the Companies Act 2016 (CA 2016). I have selected these case due to the interesting and novel points of law.
What do you mean by step in rights?
Step in rights. Step in rights enable customer (or its nominee) to take over the provision of the services in specified circumstances Key Features Trigger Events –customer’s reasonable determination Use of service provider’s personnel, equipment, facilities and IP Cooperation and assistance. Insert filename here Date of presentation 6.
How does step in rights enable customer to take over?
Step in rights enable customer (or its nominee) to take over the provision of the services in specified circumstances Key Features Trigger Events –customer’s reasonable determination Use of service provider’s personnel, equipment, facilities and IP Cooperation and assistance.