NEW YORK, Sept. 29, 2014 (GLOBE NEWSWIRE) -- Moses & Singer LLP attorney Michael Evan Avidon, co-chair of the firm's Banking and Finance practice, addressed banking professionals at a webinar panel entitled, "Developing Industry Best Practices – the Master Trade Loan Agreement" on September 16, 2014. Sponsored by BAFT (The Bankers Association for Finance and Trade), the discussion focused on the recent release of form Master Trade Loan Agreements (MTLAs) for bank-to-bank trade loans.
At the request of the BAFT Global Trade Industry Council, a working group of international trade and legal practitioners – on both the lending and borrowing side - created the MTLA forms. Moses & Singer prepared the New York law MTLA and accompanying New York law template legal opinion.
"The international banking community faced increasing frustration doing trade loans because key terms were often poorly documented and seemingly reasonable documents were being rejected. Our goal was to establish clear definitions, uniform terminology and balanced, standardized template documentation so that bankers could better serve commerce," noted Mike.
Designed to reflect best practices in documenting bank-to-bank trade loans, the MTLA is relatively short but addresses issues that some banks might otherwise overlook or address poorly. "By making loans easier and faster to document, and stating key terms clearly, bankers will benefit from lower transaction costs and higher volume while reducing disputes," Mike observed.
The New York MTLA, now available on the BAFT website, uses a master format, including representations and undertakings, sanctions provisions, events of default, and alternative provisions for enforcement and dispute resolution by court litigation or arbitration. It is specifically aimed at short-term unsecured and uncommitted trade loans.
"The MTLA give banks a great starting point for documenting the inter-bank relationship," Mike advised. "I suggest that banks – especially those on the lending side – review their existing agreements and compare them to the MTLA. This will enable them to incorporate the most current thinking in their international trade loan transactions."
Moses & Singer LLP, a law firm in New York City, serves the diversified needs of successful businesses, professionals and families. For complete information and attorney advertising disclosures, please visit the firm's website.
A photo accompanying this release is available at: http://www.globenewswire.com/newsroom/prs/?pkgid=27961
CONTACT: Eileen Alterbaum 212-554-7583Source:Moses & Singer LLP