Cross-Border Clauses
(Credit Agreement)

These cross-border clauses are used in a credit agreement and are specifically applicable to non-U.S. borrowers (also referred to as foreign borrowers). They cover key issues lenders need to consider when lending to non-U.S. borrowers. These clauses include practical guidance and drafting notes. The representations and warranties in a credit agreement establish certain facts regarding the borrowers at a point in time and warrant their accuracy going forward during the term of the loan. Generally, non-U.S. borrowers would make the same standard representations and warranties as U.S. borrowers with a few modifications or additional representations and warranties such as those shown in these example provisions to address the foreign status of some of the borrowers. The miscellaneous provisions also address matters relating to the foreign borrowers. Such provisions may be included in the loan term, covenants or miscellaneous articles of the credit agreement depending on the structure of ...