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'Perfect Pay' Provisions in Troubled Credit Markets

By Charles Cross and David G. Mayer
January 31, 2008

As credit market turmoil continues to unfold, the landscape for securitizations, syndications, mergers, and acquisitions also continues to evolve and change. But some aspects of the finance world remain intact including use of 'perfect pay' or 'servicer advance' clauses in lease and loan portfolio sale and financing facility contracts ('Funding Agreements'). However, even these provisions face review and potential changes.

Syndications in Imperfect Credit Markets

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