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ARTICLE · 19 DECEMBER 2025

Asset-Level Eligibility Series: Governmental Authorities

Mayer Brown
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This Legal Update explores why, in order for an underlying loan to be included in a warehouse facility's borrowing base, the underlying loan's obligor cannot be a governmental authority.

United StatesFinance and Banking
Jakarri Hamlin
Jakarri Hamlin
Linda E. Boss
Linda E. Boss
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This Legal Update explores why, in order for an underlying loan to be included in a warehouse facility's borrowing base, the underlying loan's obligor cannot be a governmental authority.

Example of Eligibility Criteria:

  • The Obligor of such loan is not a Governmental Authority.

What is a "Governmental Authority"?

Although somewhat negotiable, a "Governmental Authority" is typically a bona fide governmental authority—including any nation or government; any state, province, territory, or other political subdivision thereof; any central bank; or any other entity exercising executive, legislative, judicial, regulatory, or administrative functions.

Why does it Matter if the Obligor is a "Governmental Authority"?

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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