Select Page

Capital Call Facility Agreement

1. Lack of documentation of funds Some funds recover from the fact that their fund documents have not been established to consider loans to finance investments and to cover capital requests, and may lack confirmations, exemptions or material provisions. For example, fund documents should be included: in addition to the growth and duration of the fund financing market, funds and their advisors are increasingly familiar with lenders` LPA requirements. As a result, more recent PPPs often include the provisions lenders would need to provide financing as part of a capital dialogue facility. It should be noted, however, that the above result is not an exhaustive list of all the issues to be considered or all the issues that might arise during the review of an APA. There are also exceptions, particularly where funds continue to use an older form of APA, where the relevant provisions are not included in the APA, or where interpretation issues arise. At the beginning of a proposed transaction, lenders and funds should be advised by their lawyer on relevant Fund documents to ensure that relevant issues are adequately addressed in the Fund`s documents. The family doctor`s right to call investor capital may be limited after the expiry or suspension of the commitment period. Examples of possible termination or suspension events include the expiry of the investment/commitment period, the appearance of a key event, and the withdrawal of the family doctor for an important reason. It must be determined whether, despite such restrictions, the capital of the sponsors may still be called after the end or suspension of the investment period or the commitment period to finance the repayment of the remaining principal to be liquidated as part of the capital dialogue facility and the interest and accrued costs associated with it. In transactions with these investors, lenders will have the wisdom to obtain explicit waivers of investor immunity (if these investors have not already provided such exemptions in favour of lenders in letters) – although there are also general legal or legal exceptions that lenders may use in certain circumstances, which should be verified on a case-by-case basis. In any case, history shows that the defaults of public investors are incredibly low. This may be due in part to credit rating and reputational damage in the event of default, as well as severe late penalties in the underlying partnership contracts and can provide additional comfort to lenders.