Lma Master Participation Agreement

by Jill & Cathy on September 26, 2021

LSTA Distressed Sales relies on the provision of prior transfer contracts and the assignment to buyer of all of seller`s rights under such prior transfer agreements, and not on the basis of the use of prior warranties. To the extent that the recovery it received for the loan acquired by the buyer is affected by an act (or inaction) of a pre-seller in the chain, the buyer may, in LSTA`s emergency documents, appeal not only to its immediate seller, but also to a more distant former seller. While a buyer may need to be more diligent in managing an LSTA Distressed Trade compared to an LMA Distressed Trade by checking previous transfer documents, that buyer has recourse against any upstream seller who has sold the credits transferred on non-performing documents.

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