With regard to the role of agency applications, ECAs often require that the coverage document of the Court of Cassation be concluded between the Court of Cassation and one person (but not all lenders). He`s an agent on behalf of the lenders. As a result, this role of the Agency may include additional obligations with respect to compliance with the provisions of the Court`s cover document. Since a breach of these obligations can potentially affect the coverage of the Court of Cassation for each lender, the role of the representative for the coverage of the Court of Cassation is of paramount importance. There is not a single preferred approach to the officer provisions with respect to the coverage of the Court. The role can be referred to as an “easy agent” or an ECA agent, which can sometimes be documented as a separate role. As a result, the LMA ECA Buyer Credit Facility offers the possibility of a separate ECA agent role if necessary. In the market, the LMA ECA Buyer Credit Facility is expected to reduce turnaround times and costs, increase efficiency and help attract new borrowers to the benefits of using export financing. Those working in the field of the Court of Cassation should also be aware that, in addition to the presentation of the LMA, a number of ECAs have or develop models specific to the Facilities Convention, which reflect their own business positions and the specificities of the products they offer. While many of them may be generally in LMA form, it is likely that some of the “boilerplate” provisions mentioned in them do not agree with the equivalent provisions used in the model.

It will be interesting to observe as a use of template beds as it will promote standardization in this market. It was recognized early on that the financing operations supported by the Court of Auditors were such that it would be very difficult to draft a document that was somehow “standard”. In particular, it was recognized that any document submitted must be adapted to the transaction structure, the Court of Cassation and the specifics of each transaction. However, it was felt that the development of a document that would be a good starting point for discussions would be a step forward in promoting market efficiency. One of the problems perceived when accessing court assistance is that documentation requirements can be considered burdensome, particularly when different market players take different approaches and there is no standardized documentation in the market. The LMA ECA Purchaser`s Credit Facility also includes an “override” clause of the Court of Cassation which aims to ensure that the provisions of the financing documents are not at odds with the Court`s coverage document and that the financing parties are not required to do anything that conflicts with the Court of Cassation`s cover document or the requirements of the Court of Cassation. There is also a clause to protect financial parties when they act in accordance with the instructions of the Court of Human Rights. This handy note examines the recommended form of the Single Currency Agreement for Pre-Export Financing Operations (PXF document) published by the Loan Market Association (LMA) as a standard document for documenting pre-export operations.

On April 25, 2018, the LMA released a new recommended version of the LMA ECA Buyer Credit Facility. The export finance market is a new area for the LMA and presents an important step forward for the LMA suite of the recommended form of documentation.