04/13/2010 - Standard Agreement Simplifies Conclusion of Loan Sales
Standard Agreement Simplifies Conclusion of Loan Sales
BKS and Mayer Brown Jointly Develop Standard Document for Transactions
Berlin, April 07, 2010
In cooperation with the international law firm Mayer Brown LLP, Frankfurt am Main, the Federal Association Loan Purchase and Servicing [Bundesvereinigung Kreditankauf und Servicing e.V.] (BKS) created a standard agreement for loan sales that considers and implements in particular the loan sale requirements laid down in the Risk Limitation Act [Risikobegrenzungsgesetz]. This standard agreement is to make it easier for sellers and purchasers to effect loan portfolio transactions in a safe and efficient way. With the Code of Conduct passed by the BKS member companies, BKS already set a standard that exceeds the regulations of the Risk Limitation Act.
BKS President Jörg Keibel states: "It is an important responsibility of BKS to standardize loan sales as tool of the financial market in order to make the conclusion as simple and safe as possible for seller and purchaser, but while doing so consider the legal requirements and needs of the borrowers. With Mayer Brown a partner could be found who has years of experience in this important business segment."
"In particular against the background of the current restructuring on the German banking market, loan portfolio transactions keep gaining importance under new auspices“, says Dr. Jörg Wulfken, Managing Partner of Mayer Brown, Germany, and one of the leading figures in the field of the so-called non-performing loan transactions.
"When designing the standard agreement, it was of utmost importance to consider and include the vested interest of purchaser and seller in equal measure ", adds Dr. Simon G. Grieser, Partner in the Frankfurt office of Mayer Brown, who accompanied numerous complex loan portfolio transactions.
The standard agreement was included in the annual report to the NPL Forum 2009 and will be made accessible to potential loan sellers and purchasers this way. The NPL Forum is hosted by Frankfurt School of Finance and Management together with BKS every year. The annual report can be ordered via the publishing company Frankfurt School Verlag.
General information on BKS is available on the BKS website under www.bks-ev.de.
