Subscription Credit Facilities - Cayman Updates

The Cayman Islands Contracts (Rights of Third Parties) Law (Law) grants to a person who is not party to a contract the ability to enforce rights and benefits expressly granted to such third party in the contract, provided the relevant "opt-in" language from the Law is expressly incorporated in the contract in question. The limited partnership agreement (LPA) of a Cayman exempted limited partnership (ELP) may attempt to either (i) exclude a lender as a beneficiary or (ii) provide for a lender to be a third party beneficiary of its provisions. However, since the Law does not (nor was it designed to) grant rights to persons who are not accorded such rights by virtue of the relevant contract, such provisions may not necessarily have the desired impact.