City firms join forces in overhaul of loan papers

Two City firms have played a major role in helping banks and other players in the loans business give their standard documentation a makeover, it was revealed this week.Clifford Chance and Allen & Overy advised the Loan Market Association (LMA) - which was set up by banks to develop codes of practice and promote efficiency - in its overhaul of the original standard loan market documentation launched in 1999.The solicitors worked with the LMA, British Bankers Association and Association of Corporate Treasurers for 16 months, composing an extended range of standard clauses.The forms can now be applied to more loan facilities, such as letters of credit, which were not covered by the original documentation.

They also allow for the exchange of information via Web sites and e-mail.Clifford Chance partner Mark Campbell said the two firms had enjoyed a successful working relationship.

'Ourselves and Allen & Overy produced the first version of the documents in 1999, which is how we became involved with it again,' he explained.'We did it together - we sat down with the clients and looked at the various parts of the documents.

One of us would produce a draft and then the other would comment.'Paula Rohan