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Novation of loan facilities: impact on guarantees and borrower declarations

28 July 2025 / Author(s): Lisa Lacob
Issue: August-September 2025 / Categories: Feature

In this article Lisa Lacob considers arguments run on the basis that novation of loan facilities extinguish the original contract and replace it with a new one. Much will depend on the precise terms of the loan facilities and associated guarantees, but prudent lenders will want to make sure that certain terms cover the possibility of novation.

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