Banking and Financial Law

ARST Avocats acts as a lawyer specializing in banking law, primarily assisting companies, managers, partners and borrowers in their dealings with banks, credit institutions and financial organizations.

The firm assists its clients in the analysis of contracts and banking and financial regulations, but also and especially in pre-litigation situations and banking disputes : difficulties relating to the execution of a loan contract, acceleration of the loan, implementation of a guarantee, call on a first demand guarantee, recovery of a bank debt or claiming the liability of a banking institution.

Our practice combines banking law, contract law, security law and business litigation, in order to understand all the legal and financial issues that the company or its manager may face.

Banking lawyer for businesses and executives

The relationship between a company and its bank is not limited to the conclusion of a financing agreement. It can raise difficulties concerning the terms of the loan, the guarantees required, the execution of the contract, the respective obligations of the parties, or the consequences of a payment incident.

ARST Avocats assists companies and their managers in thelegal analysis of their banking and financial relationships.

Our intervention may include, in particular:

• analysis of loan and financing contracts;
• the analysis of surety agreements and other securities;
• analysis of on-demand guarantees;
• the examination of the conditions for implementing the guarantees;
• the interpretation of the clauses of a banking contract;
• the analysis of the banking institution's obligations;
• the study of the consequences of a default or payment incident;
• the analysis of the conditions for forfeiture of the term;
• the negotiation of certain difficulties relating to the execution of financing;
• More generally, the analysis of banking regulations applicable to a particular situation.

This advisory activity also makes it possible to anticipate the consequences of a financial difficulty and to assess the respective rights and obligations of the company, the manager and the banking institution.

Banking disputes and litigation with banks

A significant part of our activity is devoted to banking litigation.

ARST Avocats assists companies, managers and borrowers when a dispute arises with a bank or credit institution.

We specialize in banking disputes concerning:

• the execution of a loan agreement;
• the repayment of financing;
• the forfeiture of the term;
• the early enforceability of a debt;
• the implementation of a guarantee;
• the implementation of a first-demand guarantee;
• the enforcement of a security interest;
• the recovery of a bank debt;
• the bank's contractual obligations;
• the responsibility of a banking institution;
• disputes relating to the conditions of financing.

Depending on the situation, our intervention may begin with the analysis of the claim or formal notice sent by the bank, continue with pre-litigation negotiation and, when necessary, lead to the representation of the client before the competent courts.

INTERNAL LINK TO BE CREATED:
“business litigation” → your Expertise page dedicated to litigation.

Business loan agreement and acceleration of the loan

Business loan agreements and other financing agreements generally include clauses determining the situations in which the lender may request early repayment of the remaining amounts due.

Acceleration of the loan can have particularly significant consequences for the company since it is likely to make all or part of the remaining capital immediately payable.

ARST Avocats intervenes to analyze the conditions under which a bank intends to pronounce or invoke a forfeiture of the term and to assess the consequences that may result.

Our analysis may focus on, in particular:

• the stipulations of the loan agreement;
• events that may contractually lead to early repayment;
• compliance with the conditions stipulated in the contract;
• the formal notices sent by the banking institution;
• the amount of the sums claimed;
• interest, penalties and related expenses;
• the guarantees that may be called upon following the forfeiture of the term.

This intervention may lead to negotiation with the lending institution or, in the event of disagreement, to litigation relating to the loan contract.

Guarantees and implementation of guarantees

Guarantees are a recurring issue in banking law, particularly when the manager or a partner has personally committed to guaranteeing the company's debts.

ARST Avocats intervenes in disputes relating to guarantees and sureties, both to analyze the scope of the commitment and to respond to a request for payment.

Our intervention may include, in particular:

• analysis of the guarantee agreement;
• determining the extent of the guarantor's commitment;
• the conditions for implementing the guarantee;
• the information obligations that may be imposed on the creditor;
• disputes relating to the amounts claimed;
• the means of defense that may be raised against the claim for payment;
• the remedies and consequences related to the enforcement of the guarantee.

The Civil Code defines suretyship as the contract by which a surety undertakes to pay the debtor's debt to the creditor in the event of default by the latter

This activity is closely linked to our practice of contract law and business litigation.

First demand guarantee

A first-demand guarantee is frequently used in commercial and financial transactions to guarantee the performance of an obligation.

It differs from suretyship by its independent nature. Article 2321 of the Civil Code defines an independent guarantee as an undertaking by which the guarantor commits himself, in consideration of an obligation undertaken by a third party, to pay a sum either on first demand or according to agreed terms.

ARST Avocats assists its clients in the analysis, drafting or implementation of on-demand guarantees, as well as in the litigation that their use may give rise to.

Our intervention may include, in particular:

• analysis of the guarantee text;
• identifying the conditions allowing its appeal;
• the regularity of the payment request;
• the interpretation of the conditions stipulated by the guarantee;
• challenging the implementation of a guarantee;
• defending the interests of the beneficiary or the client;
• urgent legal proceedings that may arise as a result of the guarantee being called upon.

Securities and guarantees for financing

Financing granted to companies is frequently accompanied by collateral and guarantees designed to protect the lender against the risk of default by the borrower.

ARST Avocats assists its clients in analyzing the guarantees attached to financing and in the difficulties that may result from their implementation.

Depending on the case, this intervention may concern sureties, independent guarantees, pledges or other security mechanisms used to guarantee the repayment of a debt.

The analysis then focuses simultaneously on the financing contract, the security concerned, the conditions of its exercise and the consequences of its implementation for the company or the guarantor.

Banking responsibility

The relationship between a bank and its client can also lead to questions about whether the banking institution is respecting its obligations in the specific circumstances.

ARST Avocats intervenes in banking liability disputes, whether it is to analyze the liability that may be sought against an institution or to respond to the arguments developed in the context of a banking dispute.

Depending on the circumstances and the nature of the relationship, difficulties may include information provided to the client, the execution of a transaction, the conditions of financing or more generally the performance of the institution's contractual obligations.

Each situation requires a precise analysis of the quality of the parties, the nature of the operation, the contracts concluded and the obligations actually applicable.

Pre-litigation banking and negotiation with financial institutions

A dispute with a bank does not necessarily lead to legal proceedings.

ARST Avocats intervenes upstream of litigation in order to analyze the situation, identify the arguments that may be opposed and, when possible, to seek a negotiated solution.

The firm can intervene in particular for:

• to respond to a bank's formal notice;
• to contest the conditions of a forfeiture of the term;
• analyze a payment request addressed to a guarantor;
• to contest or regulate the implementation of a guarantee;
• discuss the amount of a debt;
• negotiate the terms of settlement of a bank debt;
• to seek an agreement to avoid or end a dispute.

This pre-litigation phase allows for the rapid determination of the strategy to be adopted with regard to contracts, existing guarantees and the economic situation of the company.

The company's financial difficulties and bank debt

A banking dispute can also be part of a broader context of financial difficulties for the company.

The termination of a competition, the demand for financing, the implementation of a security or the calling of a guarantee may require simultaneously understanding the banking situation and the solutions offered to the company to deal with its difficulties.

Our banking law practice can then be combined with our expertise in restructuring and distressed companies, in order to examine the situation globally and anticipate the consequences of initiatives taken by financial creditors.

INTERNAL LINK TO BE CREATED:
“restructuring and companies in difficulty” → your Expertise page dedicated to companies in difficulty / collective procedures.

Banking law, contract law and business litigation

Banking and financial law often lies at the intersection of several disciplines.

A dispute relating to financing may require simultaneous analysis of the loan agreement, a guarantee, a first demand guarantee, the conditions for acceleration of the loan and the financial situation of the company.

Our approach therefore consists of combining our skills in banking law, contract law, securities law, business litigation and companies in difficulty in order to understand all the consequences of the dispute.

As abanking law firm, ARST Avocats primarily assists companies and managers in analyzing their banking relationships and, above all, in preventing and handling their disputes with banks and financial institutions.