Roles and Responsibilities

Syndicated loans may also include parties required to manage the unusual multiple financier relationships and associated fiduciary obligations.
To avoid the borrower having to deal with all the syndicate banks individually, one of the syndicate banks usually acts as an Agent for all syndicate members. The Agent acts as the focal point between the lenders and the borrower and manages all administrative aspects of the loan including drawdowns, repayments, fees, reporting & compliance, loan monitoring and requests for changes to the loan facility. The Agent is empowered in the loan documentation to act upon a vote of the Lenders in circumstances where a decision has to be communicated back the the borrower. Most decisions require a majority vote (between 50.1% and 90% or lenders consenting depending upon market) or a 100% decision for important matters such as the loan amount, risk margin and other similar decisions.
Where a facility is secured, a trust can be used as a vehicle to share the benefit of the securities between syndicate members. The Security Trustee is appointed to act in the interest of the Lenders who become beneficiaries of the security trust. The security