Finance Deals & Syndicated Lending · glossary
Two materiality tests on one statement: one inside the representation and one in the Event of Default. Clause 19.3 already catches only a statement untrue in a material respect, so lenders resist a second test that filters the risk twice. Clause 19.3 · Chapter 8
Explained in Chapter 8, Representations, of Finance Deals & Syndicated Lending.
Materiality. Words such as “in all material respects” stop trivial errors from tripping a statement. But clause 19.3 already catches only a statement that is untrue “in any material respect”, so a second test inside the statement filters the risk twice. Lenders call this double materiality and resist it, though Atlas did win it for the information statement in clause 15.7.Read Chapter 8, Representations →
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