It is now a requirement for lenders, particularly institutional lenders, to obtain confirmation of independent legal advice in conjunction with lending transactions.
Anyone providing a guarantee to a lender as part of the security for a loan to a company, will usually be asked to provide evidence that they have taken independent legal advice on their liability under such a guarantee. This is particularly the case where the person giving the guarantee is not involved in the business, but increasingly lenders are asking for similar independent advice where those giving the guarantees are existing directors or shareholders.
Independent legal advice requires a face to face meeting and for the solicitor to advise the guarantor on the terms of the guarantee and the likely liability he or she is undertaking. It is often also necessary to verify their identity as part of the process.
Our specialist corporate lawyers deal with independent legal advice on a day to day basis. We can advise on documentation from all the major banks, both high street and private. We are able to provide the forms of certificates required by the banks and will liaise directly with the lender on your behalf.
If the guarantee documentation is such that it places onerous obligations upon you we will advise and can then act on your behalf in negotiating amendments to the documents to make them more appropriate for your circumstances.
We recognise that independent legal advice often has tight time constraints and we can offer speedy appointments to meet with clients. We also provide written reports on receipt of the documents by e-mail which can be a useful guide in the future, should it become necessary for the guarantee to be called upon.