The Security Agent in the Syndicated Loan Arrangement

Economists name syndicated loan among the key risk management tools in the financial industry, and the assumption of significant risks by creditors is characteristic of a growing economy. One of the major movements of recent years in the Russian civil law has been the adaptation of the legislation governing loan and collateral to the needs of the modern financial market. The essence of syndicated lending is that banks can fully or partially sell their participation in the debt to other financial institutions and investors who acquire rights similar to those of the previous creditor, and the number of creditors at the same time can reach several dozen. This is due to the presence of the person managing the security for the benefit of creditors. This paper is dedicated to the identification of the principles of legal regulation of relations with the participation of the security agent in syndicated lending, which, on the one hand, would satisfy secured creditors as much as possible, and on the other hand — would not be at the expense of the interests of the security agent himself. The allocation of such fundamental legal principles on the basis of the analysis of regulation in foreign legal orders and Russia will allow to assess national legislation and contracts for compliance with the needs of the modern financial market. To this end, the legal principles should reflect the requirements for collateral management arising from the economic content of syndicated lending. Keywords: syndicated lending, security agent, fiduciary, agency.