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Loss Share Agreement
"Need a Loss Share Agreement between our bank and a hedge fund partner to share potential losses on a £50M commercial property loan portfolio, with an 80:20 loss sharing ratio and monthly reporting requirements starting from March 2025."
1. Parties: Identification and details of the contracting parties
2. Background: Context and purpose of the loss share arrangement
3. Definitions: Key terms used throughout the agreement
4. Loss Share Mechanism: Core provisions detailing how losses will be shared
5. Calculation and Payment: Methods for calculating losses and payment procedures
6. Representations and Warranties: Standard assurances from both parties
7. Term and Termination: Duration and termination provisions
1. Security Arrangements: Additional security provisions when collateral or security is part of the arrangement
2. Regulatory Compliance: Specific regulatory obligations when parties are regulated entities
3. Data Protection: Data handling and protection provisions when personal data is being shared
1. Loss Calculation Methodology: Detailed methodology for calculating shared losses
2. Form of Loss Notice: Template for notifying losses under the agreement
3. Payment Procedures: Detailed payment mechanisms and timelines
4. Eligible Assets: List of assets covered by the loss share arrangement
Authors
Applicable Law
Business Day
Calculation Date
Calculation Period
Covered Assets
Covered Losses
Default Event
Effective Date
Eligible Assets
Excluded Losses
Loss Notice
Loss Payment
Loss Payment Date
Loss Share Amount
Loss Share Calculation
Loss Share Limit
Loss Share Portfolio
Loss Share Threshold
Loss Sharing Event
Maximum Loss Share Amount
Payment Period
Portfolio Value
Qualifying Loss
Recovery Amount
Reference Assets
Regulatory Authority
Relevant Jurisdiction
Risk Participation
Settlement Date
Supporting Documentation
Termination Date
Transaction Documents
Trigger Event
Calculation and Payment
Notification Requirements
Representations and Warranties
Conditions Precedent
Loss Determination
Recovery Provisions
Payment Mechanics
Information Rights
Reporting Requirements
Confidentiality
Data Protection
Regulatory Compliance
Events of Default
Termination Rights
Force Majeure
Assignment and Transfer
Set-off Rights
Amendments and Waivers
Notices
Governing Law
Dispute Resolution
Severability
Entire Agreement
Third Party Rights
Counterparts
Further Assurance
Costs and Expenses
Indemnification
Record Keeping
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