Legal headaches on transferring of loans to NAMA

Messiness begins - from Constantin Gurdgiev

International Swaps and Derivatives Association (ISDA) has issued an interesting opinion on Nama worth a read…
In effect this will severely restrict two aspects of Nama operations:
this provision will increase the share of non-performing loans in the overall take up of loans by Nama, putting more pressure on Nama bottom line; and
this provision will also mean that some of the most toxic loans (with complex collateral rights, significant redrawing of covenants in the past, and/or substantial cross collateralization) will either have to be left with the banks as a whole or bought into Nama as a whole…

f Nama is to have serious teeth in changing the terms and conditions of loans, it will risk freezing the entire future ability of the Irish banks to have meaningful access to international counterparties.
…If anyone thinks things are tough in Irish financial markets now, wait till these aspect of Nama as an entity operating outside international norms and regulations come to play…

trueeconomics.blogspot.com/2009/ … ls-in.html*

and this bit is nice as well

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Brilliant find superman…this is very interesting

Would this not be a good thing seeing as our banks have shown themselves fundamentally unable to play the game of toxic pass the parcel?

Aren’t we paying Arthur Cox the big bucks to look at these issues? You can be sure that the internal bank legal teams, which are be very familiar with ISDA agreements, are all over it.

Arthur Cox is systemic. Rich Irish people work there. If we didn’t pay them, they would be in difficulty. Ireland needs an independent legal profession section divorced from the realities of the international big players. We would prefer it if they didn’t actually do any work…