Agent Bank's Fiduciary Duty To Other Participating Banks In International Syndicated Loan

In international syndicated loan, agent bank is the member of international syndicate who is entrusted by all members with managing the loan for the international syndicate, and acting as the bridge between international syndicate and the borrower after signing the loan agreement. In accordance with cases of Anglo-American law, the agent bank is burdened with fiduciary duty to other members of syndicate. For the most part, the fiduciary duty can be excluded by exculpatory provisions in the loan agreement. In some cases, however, exculpatory provisions are noneffective. From the perspective of Anglo-American law, this article studies the agent bank's fiduciary duty to other participating banks of international syndicated loan. The article includes five chapters.The first chapter discusses the international syndicated loan briefly, analyses the principal features, the basic varieties and parties of syndicated loans. The second chapter studies the fiduciary duty in Anglo-American law, compares the fiduciary duty with the principle of good faith in continental law, and defines basic principles and types of fiduciary duty. The third chapter analyses the relation between agent bank and other participating banks, illustrates that the agent bank is burdened with fiduciary duty to other participating banks, and discusses the content of agent bank's fiduciary duty. The forth chapter studies the effectiveness of exclusion of agent bank's fiduciary duty. The fifth chapter discusses inspirations of agent bank's fiduciary duty in international syndicated loan to international and domestic syndicated loan in China.