In the financing world, side deeds (sometimes also referred to
as tripartite deeds, consent deeds or direct agreements) are
frequently the source of robust negotiations between parties. This
article briefly explores when a lender needs a side deed and the
key elements that a lender should require when obtaining one.
What are side deeds?
Side deeds create a direct contractual relationship between the
lender and a third party to a financing. That third party would be
the counterparty to a key contract or arrangement with a borrower.
Generally, that contract or arrangement is essential to the
borrower's business or the project being funded by the
lender.
The most common examples of key contracts where a lender may
require a side deed are:
