International banking and finance law Assignment - 1

International banking and finance law - Assignment ExampleThe banks come to form under the aegis of adept lead bank to make up the necessary availability of funds with the help of each bank in the group. The lead bank is the agency that has admit relationship with the borrower whereas new(prenominal) banks are called upon by the lead bank to fund the project (Gatti, 2008157).The legal structure of the banks for proper financing the project may take lead bank, which has direct relationship with the borrower participant which is a financial intermediary lending an amount below the threshold documentation bank responsible for refine drafting of the documents concerning the loan and agent bank responsible for managing the cash flows and payments during the project lifecycle (Gatti, 2008157). It is however important to mention that lead bank could be liable to other particles for negligent preparation of the information memorandum (Roberts, 199879).b) The legal issues arising from t he loans given by the group of banks for a particular project include pre-contract relationships involving lead bank, lenders and borrowers the legal line of the agent banks, information of the borrower, project details like requirement of finance during its lifecycle. The Unfair Contract Terms Act 1977 declares the exclusions of liability for negligence by feel will only be effective in as much as they are reasonable. A non contractual remedy is also available to the member in the form of an action for fraudulent misrepresentation (Roberts, 199883)..The rights and obligations of the banks are independent of each other and that the financial assistance provided by the banks in the group is usually separate loans made to the borrower which also gives the right to the bank to make its own decisions on matters pertaining to default by the borrower. The group of banks act like a syndicate, whereby, a clause is included declaring that when an