The LSTA published minor revisions to the tax clauses of its Model Credit Agreement Provisions.
On August 1, 2012, the Loan Syndications and Trading Association (LSTA) published minor revisions to the tax clauses of the Model Credit Agreement Provisions (MCAPs). The primary change is a modification of the definition of "FATCA" to include foreign financial institution (FFI) agreements entered into with FFIs under Section 1471(b)(1) of the Internal Revenue Code. Under the LSTA MCAPs, lenders are generally not grossed up for withholding taxes imposed under FATCA.
PLC Finance has updated the following PLC resources to be consistent with the latest revisions to the tax clauses of the MCAPs: