Should the agent perform due diligence with respect to assignees purchasing loans in the secondary market?
There may be situations in which an agent would not be in a position to transfer funds to, or receive funds from, an assignee, because, for example the assignee is subject to sanctions. The agent may have AML concerns about prospective assignees. A Financial Institution that will be an agent for a syndicated loan should consider having provisions included in the relevant loan documentation that would permit it to take such concerns into account and to allow it not to effectuate an assignment on the basis of such concerns.
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