WorksheetsI love Banking Law
Total questions: 20
Worksheet time: 40mins
What is cross-default?
All of the creditors are to stand in equal step
Maintenance of the credit worth of the borrower is significant
When both parties fail to perform their contractual obligations
A contractual provision which puts a borrower in default if the borrower defaults on another obligation
When a contracting party is required to pay its obligations earlier than they would otherwise become due is...
Cross-acceleration
Cross-default
Acceleration
Default
The non-defaulting party may rely on the fact that its counterparty has had its obligations accelerated under another contract so as to terminate its agreement with its counterparty... This is called...
Cross-default
Acceleration
Cross-acceleration
Accelerated termination
A negative pledge clause is used in contracts relating to
deposits
secured loans
insurance
unsecured loans
No correct answer
What is important about ______________ is that if the borrower goes bankrupt, the loan moneys are held on trust for the lender and therefore are not distributed among the borrower's creditors.
pari passu
Surety
Quistclose trust
Mortgage
What is an event of default?
circumstances that give a right to a Party to terminate (accelerate) a loan contract
circumstances under which a banker must take security from its borrower
same as cross-acceleration
negative pledge
This loan contract term ensures that the borrower’s assets remain unencumbered and available to satisfy the claims from unsecured creditors in the event of insolvency.
pari passu
Negative pledge
Condition precedent
Representation/Warranty
Bank's implementation of the "Know your client" approach can be found in ...
Condition precedent
Negative pledge
Cross-acceleration
pari passu
Which of the following can trigger acceleration?
Increase of profits of the borrower
Accuracy of the information provided to the lender by the borrower
Insolvency
Absence of a guarantee
Which event was not the reason why lending banks decided to accelerate Yukos payment obligations?
USD 3 bln tax bill
CEO's imprisonment
Russian ruble crisis
Freeze of Yukos assets by the Russian government
Which case concerned MAC?
Lombard North Central Plc v European Skyjets Ltd (2022)
Westdeutsche Landesbank v Islington (1996)
BNP Paribas v Yukos (2005)
Ultraframe (UK) Ltd v Fielding (2005)
This is one stage in the process of lending. The document which is signed at this stage reminds of a engagement ring. This is called (a) letter.
This is a series of small independent promises made by the borrower to the lender which the borrower must fulfill after he receives the loan money from the lender
(a)
This is a stage in the process of lending. This document contains important terms of a transaction, but it is not legally binding. It is like a handshake. It is called (a) sheet.
This is a loan contract term that refers to things that are in the same situation, things that rank equally
Negative pledge
pari passu
Acceleration
Cross-default
At this stage of the lending process, the bank assesses the client's creditworthiness and clears the credit. It is called due (a) .
What was the decision of the court in BNP Paribas v Yukos case?
It was decided that the syndicate of lenders committed wrongful acceleration
The syndicate of lenders had to pay compensation of damages to Yukos
Acceleration triggered by the syndicate of lenders was admissible
Pari passu principle was breached by the syndicated loan contract(s)
When the borrower for the first time approaches the bank with capital needs, the bank reviews preliminarily and issues a(n) (a) letter.
Events of default may be financial and ...
(a)
What is one of the consequences of an event of default?
The lender has the right to enforce a security
The lender has the right to forbid mergers and acquisitions
The lender may initiate a borrower's bankruptcy procedure
The lender has the right to MAC
