These documents (for which the context allows, text, content, tables with macros and electronic interfaces, as well as their underlying assumptions, conversions, formulas, algorithms, calculations and other mathematical and financial techniques) are made available to members of the Credit Market Association, in accordance with the statutes of the Credit Market Association (a copy of which is available here) to facilitate the documentation of transactions in the credit markets. None of the Loan Market Association, Allen-Overy or Clifford Chance assumes any responsibility for any use of these materials or any loss, damage or liability resulting from such use. None of the Loan Market Association, Allen-Overy or Clifford Chance has considered the laws of a jurisdiction that may apply to any of the parties to an agreement using these materials and its purpose. Members should therefore consider all relevant legal, accounting and regulatory issues before using these materials or entering into a transaction in connection with these materials and, if necessary, consulting with their professional advisors. Similarly, English jurisprudence shows that oral agreements on credit trade can be enforceable: 5 The LMA documents expressly provide, under standard conditions, both for the same rank and for bank debt transactions in the event of default, that a binding contract between the parties will enter into force “by verbal or written appointment” essential conditions on the agreed date.6 Notwithstanding the fact that, in both New York and English law, it may be possible to ensure oral or electronic communication between the parties without written confirmation. The application of such communication can be difficult and depends on an analysis of the facts and circumstances7. Parties are therefore invited to keep internal written records of all agreed transactions and to endeavour to formalise the terms of a secondary credit transaction without delay on the basis of written confirmation of the trade or electronic notification. Since LSTA and LMA transactions on oral or electronic communications may become mandatory before formal written confirmation is signed, a party wishing to enter into a bank debt contract with a counterparty must be careful to do its homework and duties in advance before accepting the essential conditions. A party must ensure that it refers, when communicating with a counterparty, to the appropriate borrower/debtor in the capital structure of a business family and must: (i) if there has been a payment or late payment under the credit contract; (ii) if the credit contract provides guarantees (and if collateral is pledged or is granted to lenders, if a party is ordered to pay a fee upon the acquisition of that debt in order to remain in good shape after the conclusion of the trading)8; (iii) the status of an insolvency proceeding (if any) with respect to the borrower/debtor; (iv) transfer obligations imposed by the current credit agreement (e.g.B. the company purchasing the loans may have a legal right or the parties will be required to pay an equity or sub-participation); v) the law applicable to the credit contract (for example. B may prohibit or limit certain companies that become lenders); and (vi) the borrower`s organizational sovereignty (z.B. may be subject to withholding tax on payments, depending on the borrower`s jurisdiction).