Chapter 26: Funders' Direct Agreement

STANDARDISATION OF PF2 CONTRACTS PROVISION

SOURCE OF CHANGE WHERE RELEVANT

EXPLANATION OF HOW PROVISION HAS CHANGED THE SoPC4 POSITION

Chapter 26: Funders' Direct Agreement

Section 26.3.8 (Required Approach)

Market update

Expansion of guidance on release from security of Assets on termination.

Section 26.6.1 (Funders' Direct Agreement)

Market update

The required drafting for the Funders' Direct Agreement includes the following changes from the version on SoPC4

1. Clause 1 - definitions of Authority Direct Agreements, Unrestricted Assets and several definitions taken from the Contract and the Credit Agreement

2. Footnote 13 expands on classes of Suitable/Unsuitable shareholders

3. Clause 6(b) - several changes reflecting market up-date

4. Clause 7(a) - changes reflecting market up-date

5. Clause 8(d) - reflecting market up-date

6. Clause 9 - changes

7. Clause 10 - new clause to provide for release of Assets, including Unrestricted Assets

8. Clause 11(c) - changes to detail of how long the Funders' Direct Agreement continues.

Section 26.7 (Authority Rights under Direct Agreements)

Market update

As release of Assets from security is now dealt with in Clause 10 of the Funders' Direct Agreement, Clause 31.7.6 from SoPC4 is not included in this guidance.