3. Check the wording of the existing facility agreement During the term of a facility, the borrower`s financial situation may vary. Sometimes circumstances change so much that she wants the terms of the documentation in the schedule to be formally modified to reflect that change. For example, a borrower could ask their lenders to ease the financial obligations imposed on them if their financial situation has improved significantly and appears to be sustainable. Conversely, if the borrower is not doing well financially, he could ask his lenders to reschedule the debt in order to make the repayment dates accessible. These types of changes are permanent. Ideally, guarantors should accept any changes to the installation agreement. This can be achieved simply by asking them to give their consent by countersigning the letter of amendment. However, in cases where guarantors cannot sign (e.g. B the lack of availability of signatories by illness or other means), it may be possible to continue without receiving this confirmation. However, given the nature of the proposed amendments and the current urgent need, a commercial vision can be adopted. A lender still enjoys fairly extensive protection under the Companies Act 2006 (see 39 et se.40), which allows it to consider that a document signed by a company in accordance with the Companies Act has been duly approved.
In most cases, this should allow a lender to proceed with the change, even if these additional supporting documents are not received. However, they should carry out a business search and a credit check to ensure that no insolvency action has been taken. There may be other influencing factors. For example, previous facility arrangements may need to be modified and adapted to bring the conditions into line with current donor policy requirements or existing legislation. Either way, it`s important to think about the most pragmatic and least expensive approach. As the term says, the security of „all funds“ generally covers „all funds“ that the principal debtor owes to the funder (including any obligations that will be incurred in the future). In principle, the security of „all funds“ should guarantee modified commitments without the need for new security. However, it is advisable to obtain written confirmation from debtors that, despite the changes made, the existing security remains in full force and effect.. . . .