FundNopolis (Commercial Finance Consultant) 08 July 2013
Interestingly a lot of "Law Firms" advise on Project Financing.
My question is? how does an Advocate or Lawyer specialize in financing when in the first they have just done LLB, LLM and have never studied finance as their specilization.
I have checked with several Lawyers who provide project financing services and majority of them don't have a finance degree.
Please help clear my doubt.
Thank you.
Leonard
Advocate Sastry (Advocate) 08 July 2013
narendra.s.p (Chief Manager(Law)) 09 July 2013
Obtain and carefully study the Terms and conditions of funding the project form the Banker- [Lead Banker in case of consortium lending] Study the Parties to contract-legal constitution, their obligations, capacity to discharge their obligations, their interse-contracts of the borrowers with other suppliers /entities to complete contract within stipulated time. Commissioning of contract and implementation requirements – Legal compliances- certification from various authorities, labour law compliances. Consequences of breach of any agreement/s. If the project generates receivables, then escrow arrangement should be carefully drafted. As regards immoveable properties obtained as security [as per terms & conditions letter of the Banks] examine how it can be enforced in the event of default. Due diligence has to be carried out. Finally, time is the essence of the contract.
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