Clifford Chance
The limited obligations of agent banks - September 2013
9 September 2013
Agent banks often trouble over the extent of their duties to their syndicate and, in particular, how far they are required to act beyond the express scope of the duties set out in the transaction documentation. In a recent case, the English High Court has provided useful guidance for agent banks, illustrating that the courts will construe agents' responsibilities narrowly in accordance with the transaction documents, rather than implying wider duties. But the court also observed that if an agent acts outside its capacity as such, it can incur stricter extra-contractual liabilities to its syndicate.
