{"id":304,"date":"2020-10-07T13:03:31","date_gmt":"2020-10-07T17:03:31","guid":{"rendered":"http:\/\/blogs.duanemorris.com\/bankinglaw\/?p=304"},"modified":"2021-06-17T11:28:03","modified_gmt":"2021-06-17T15:28:03","slug":"will-borrowers-pay-for-libor-amendments","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/bankinglaw\/2020\/10\/07\/will-borrowers-pay-for-libor-amendments\/","title":{"rendered":"Will Borrowers Pay for LIBOR Amendments?"},"content":{"rendered":"<p style=\"background: white;margin: 12.0pt 0in 12.0pt .5in\"><span style=\"color: black\">In a consensual lending world, a commercial borrower is usually obligated to pay for a lender\u2019s expenses relating to a loan. Depending on the loan agreement, the borrower might agree to pay closing costs, enforcement costs if the loan goes bad, and fees and expenses for amending the loan agreement. Even if a loan agreement is silent, a borrower may find that the lender is unwilling to amend the agreement unless the borrower pays the costs. Regardless of the language or lack thereof, whether a lender can and should impose such costs may be an open question.<\/span><\/p>\n<p style=\"background: white;margin: 12.0pt 0in 12.0pt .5in\"><span style=\"color: black\">If the borrower is asking for an amendment, then it only seems fair that the borrower pay for the lender\u2019s amendment costs if requested. In a committed loan, it is unusual for a lender to ask for an amendment that the borrower doesn\u2019t also want\u2015but if it does, it doesn\u2019t seem fair for the borrower to have to pay the lender\u2019s costs.<\/span><\/p>\n<p><!--more--><\/p>\n<p style=\"background: white;margin: 12.0pt 0in 12.0pt .5in\"><span style=\"color: black\">In this framework, LIBOR transition amendments are a bit tricky. Neither borrowers nor lenders asked for the phase-out of LIBOR to occur\u2014it was largely imposed by regulatory authorities. Nonetheless, both parties should want to amend their loan agreements. Who pays for the amendments? We discuss this issue and more in our\u00a0<i><a href=\"https:\/\/www.duanemorris.com\/alerts\/who_pays_libor_transition_0920.html\">recent Alert<\/a><\/i>, which can help you understand the costs involved in LIBOR transition and how to effectively engage with the other party\/parties to allocate the costs. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a consensual lending world, a commercial borrower is usually obligated to pay for a lender\u2019s expenses relating to a loan. Depending on the loan agreement, the borrower might agree to pay closing costs, enforcement costs if the loan goes bad, and fees and expenses for amending the loan agreement. Even if a loan agreement &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/blogs.duanemorris.com\/bankinglaw\/2020\/10\/07\/will-borrowers-pay-for-libor-amendments\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Will Borrowers Pay for LIBOR Amendments?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[253,313,240,248,307,247,308,250,242,252,227,228,243,236,311,310,312,309,241,256,257,206,258],"ppma_author":[333],"class_list":["post-304","post","type-post","status-publish","format-standard","hentry","category-general","tag-amelia-huskins","tag-amendment-costs","tag-amy-huskins","tag-chari","tag-closing-costs","tag-duane-morris","tag-enforcement-costs","tag-ephross","tag-han-wang","tag-huskins","tag-joel-ephross","tag-libor","tag-libor-replacement","tag-libor-transition","tag-libor-transition-costs","tag-libor-transition-expenses","tag-loan","tag-loan-agreement","tag-michelle-ngo","tag-ngo","tag-phuong-ngo","tag-roger-chari","tag-wang"],"authors":[{"term_id":333,"user_id":6,"is_guest":0,"slug":"duanemorris3","display_name":"Duane Morris","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/843ff6e7a8fe5fc92109b47a45f34b6cf0ea499e6e788db23456c838b0ae6747?s=96&d=blank&r=g","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts\/304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/comments?post=304"}],"version-history":[{"count":0,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts\/304\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/media?parent=304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/categories?post=304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/tags?post=304"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/ppma_author?post=304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}