The UK/US IGA signed on 12 September 2012 is a very positive development. One major benefit is that it enables bank lenders to ensure they can make and receive payments free of FATCA withholding, by lending through a facility office in the UK. In our view the LMA riders published in July 2012 have now been superseded and it is time to adopt the US approach to FATCA in syndicated loan documentation.
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The UK/US IGA signed on 12 September 2012 is a very positive development. One major benefit is that it enables bank lenders to ensure they can make and receive payments free of FATCA withholding, by lending through a facility office in the UK. In our view the LMA riders published in July 2012 have now been superseded and it is time to adopt the US approach to FATCA in syndicated loan documentation.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes: