Purpose and Structuring Loan Agreement

A loan agreement is the document which represents the formal evidence of a loan. The document also includes important details such as covenants, positive or negative ones, the information on the collateral such as loan type and its value, as well as guarantees, the applicable interest rates, fees, the conditions according to which the loan is to be repaid, and the period of repayment envisaged.

To sum up, the loan agreement contains the terms and the conditions that are pointed out so that the borrower can draw out a loan. The terms and conditions are set by the lender, which can be a bank, or another type of financial institution. In fact, the loan represents a type of "facility" that is offered by the lender, and that is why the agreement on the conditions under which a loan can be taken out is also referred to as a facility agreement. The agreement comprises four sections.

The first section contains the terms that are to be used in the document and their definitions.

The second section is concerned with the operational terms relevant to the agreement, which means that it points out the amount to be borrowed, the schedule of its repayment, and the interest on the repayment. The second section of the loan agreement is of special interest for the financial agents of the borrower.

The third section is dedicated to the specifics of the loan transaction; it contains the responsibilities of the borrower and the lender, the measures to be undertaken in the event of the borrower's inability to repay the loan; there is also information on the extent to which changes can be made to the agreement. The third section is drawn up after detailed negotiations between the lender and the borrower.

The final fourth sections contains standard text including details such as contract information, the relationships that exist between the finance parties - in the event of more than one tender and more than one law that apply to the agreement.

Loan agreements fall into two main types, according to the type of lender, and according to the type of facility. With respect to the type of lender, there are bilateral loans and syndicated loans. Syndicated loans are provided by groups of lenders, and their structuring and arrangement, as well as their administration, are carried out by more than one bank, commercial or investment ones, and the lending banks are also referred to as arrangers.

Besides a standard loan for which a loan agreement is drawn up, there is another popular type of loan, the demand loan. That is a short term loan, with a period of repayment for up to 180 days. The date for the repayment of the loan is not fixed, and the interest rate for it is a floating one. The demand loan offers advantages for both borrowers and lenders. The lender can demand the repayment of the loan at any time, and on the other hand, the borrower does not need to adhere to a repayment in installments, as the repayment should be made for the entire amount. Furthermore, demand loans are easier to qualify for.

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Personal Injury Claims Questions and Answers

Considering making a personal injury claim raises a number of questions for your average citizen. Legal processes can be complex and personal injury claims are no exception.

What determines whether or not I'm eligible to make a personal injury claim?

Liability is the short answer to this question. More specifically, if you have suffered a personal injury due to the negligent actions and fault of someone else, then you are eligible for a claim. If the liability belongs to someone else, a claim should at least be considered.

What determines how much compensation I get from a personal injury claim?

There are a few factors that determine the sum of compensation which might be expected. Firstly is a combination of the severity of the injury suffered and the importance of the body parts affected. For example, a toe would be considered less important than your brain and a fracture would be considered less serious than a multiple break. Secondly  is the total amount of losses through damages suffered by you in the form of loss of income, for example.

How much time will be taken out of my day if I make a claim?

The majority of specialist personal injury compensation claims are settled out of court. This is the main reason that very little time will be needed on your part to see the personal injury claim through from start to finish. Also, your claims specialist and expert solicitor will do the vast majority of the work for you.

How long will it take to finish the personal injury claim?

The average time to finish a personal injury claim is eight to sixteen weeks. However, for more complex cases, longer may be needed. Likewise, for more clean-cut cases, they can be finished in less time.

Why should I use a claims management company?

As with any area of life, using an expert in any given field is maximising your effectiveness. Any general legal practitioner may take on your personal injury claim, but an expert will have greater chances of success and a good, trusted personal injury claims company will have access to the best.

What can I claim compensation for?

You can claim compensation not only for the damage to your body done by the personal injury itself, but also for psychological damages which you may incur, emotional damages in the more short term, damage to property which may have happened and also for any lost wages that might be experienced during your healing period.

How do I get started on the personal injury claim?

Any decent personal injury specialist will offer you a free consultation for your claim. Take advantage of one of these and contact a personal injury specialist today to get started.

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Learn About Contingency Fees in Legal Cases

If you have a legal case, one of the biggest concerns may be in regards to money. As a plaintiff, you understand that you need to hire an experienced attorney to improve your changes of settling your case or being awarded a judgment. However, hiring an attorney can cost you a pretty penny if you do not understand the terms of compensation. Contingency fee arrangements have become a popular method of compensation in a number of different types of cases. Understanding what contingency fees are, how contingency agreements work, and when a law firm may be willing to take a case on a contingency basis is important before you retain a lawyer.

What Are Contingency Fees and Why Do Some Law Firms Accept Cases on a Contingency Basis?

Often, the average person cannot afford to pay a lawyer out-of-pocket before his case has been settled. While some lawyers do charge flat fees or hourly rates for their services, more and more law firms in Missouri are leaning towards accepting cases on a contingency basis. A contingent fee is a conditional fee, where the client is only required to pay the lawyer or the firm if the lawyer handles the case successfully. If the firm is not able to get the client a settlement or a judgment, the client does not recover any money and is not required to pay the law firm for their time. On the other hand, the client will agree to pay the law firm a fixed percentage of the total amount recovered and paid to the client. A typical contingency fee is between 25% and 35% of the total recovery amount.

How Does the Contingency Basis Benefit the Plaintiff?

There are obvious benefits to retaining a law firm that is willing to accept cases on a contingency basis. Because some lawyers have hourly rates ranging from $100 per hour to $1000 per hour, many plaintiffs with a case cannot afford to pay a lawyer for all of the hours that they will spend on their case. The only real alternative is to find an attorney who does not charge an hourly rate for their services. The client is not expected to pay the firm until the client actually recovers money. At that time, a percentage of the settlement or award will be transferred to the law firm.

Another less obvious benefit is that law firms that are working on contingency fee arrangements are more likely to collect on the case. The lawyer will only get paid if he successfully collects, and this is incentive enough for the lawyer to work hard on the case for the client. If a lawyer is paid hourly, he knows he is getting compensated for his time regardless of the outcome. If a lawyer will only be compensated based on the outcome of the case in question, it can benefit the client as he may be able to expect a higher settlement or judgment. After all, contingency fees are a percentage of the amount recovered. The higher the recovery, the more the firm will receive for the case.

When Can a Law Firm Take on a Case on a Contingency Basis?

Not all law firms can take all cases on a contingency fee basis. Because there is a risk that the law firm will not be compensated, the law firm must feel good about the case and do their own investigating before a retainer is signed. Some law firms may also require that the prospect of recovery be a minimum amount before taking on a case. A common minimum prospect of recovery for cases accepted on a contingency basis is $50,000.

This billing method arrangement is only used in cases where money is being claimed. Personal injury cases and worker's compensation cases, where the prospect of recovery are high, are common types of cases that are accepted by lawyers. Commercial disputes, auto accidents, product liability, and medical malpractice cases can also be taken on this type of fee arrangement.

Why Won't a Law Firm Offer a Contingency Arrangement?

Because of this risk involved with this type of billing method, some attorneys are very careful when taking on contingency cases. If the prospect of recovery is very low or the senior attorney with the firm does not believe the case is strong enough for a settlement or award, the law firm may decline even accepting the case. The firm could accept the case and require that the client pays an hourly rate.

State laws do not allow law firms to accept contingency basis cases in all areas of law. It is against the law for firms that are taking on any type of family related matter, like a divorce or a child custody case, on a contingency fee basis. Therefore, family law practices will never offer this type of payment arrangement.

While contingent fee arrangements may end up costing the plaintiff more than standard billing in the end, these types of billing arrangements do have their advantages. For one-third of the award, individuals can hire a lawyer who will fight for them to get the compensation they are owed. Typically, when an individual files a legal case with a firm on a contingency basis, he has a good chance of winning the lawsuit. This provides some peace of mind in knowing that the law firm will be highly motivated to work hard for a recovery.

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Outrageous Personal Injury Lawsuits

It has become apparent that many lawsuits are being made where the claims are often seen to be more on the frivolous side. Quite a few of the claims filed sound and read absurdly ridiculous, but there seems to be no length that some people will go to making money, which in some cases can be a very significant sum.

Here are some of the cases filed that often seem to make the top lists for the more frivolous and outrageous claim –

A very common case referred to relates to the McDonalds trial dating back to February 1992. After visiting a local drive-though McDonalds for a coffee, Stella Liebeck was sitting in the car, which was stationary at the time, and lifted off the cups plastic lid, in the course of doing this, steaming hot coffee spilt onto Liebecks legs. The result of this was that Stella Liebeck experienced third degree burns to about 6% of her body. In view of this bodily damage, she sought damages from McDonalds at an amount of $20,000. MacDonald's in turn declined to settle out of court. However, when the case went to trial Stella Liebeck was awarded a settlement of $160000 in compensatory damages. It was also determined at trial that she was deemed to be 20% at fault for the resulting accident. In addition to the compensatory damages, Liebeck was also given punitive damages to the tune of 2.7 million.

In the unfortunate accident in Galveston Bay in 1992, Karen Norman, aged 23, reversed her vehicle in the water. Karen Norman wasn't able to unbuckle the seat, most due to the fact that she have been drink early (alcohol blood level at .17 which is double to limit), and drowned. The passenger in the vehicle was able to work her belt and escaped from the vehicle and made it back to dry land. After the incident, the parents of Karen Norman proceeded to sue the vehicle manufacturer, which was Honda in this situation, for designing a seat belt that wasn't easy operated underwater. In the trial proceedings the jury determined that Honda was 75% at fault for the incident and an award of $65 million was presented to the family.

In Ohio in 1998, Gregory Roach and Gordon Falker, where unfortunate to be burnt by a carpet adhesive (3.5-gallon container) which ignited due to the fact that it was left in place next to a water heater. Roach and Falker both believed that the labels on the adhesive container weren't sufficiently descriptive. Warnings of Keep Away from Heat and Flammable weren't enough to alert them to the possibility of an explosion. In view of this, a personal injury claim was filed against Para-Chem who were the manufacturers. It was deemed by the jury that the Para-Chem was at fault and the two gentlemen were award a cool $8 million.

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How To Handle Intellectual Property Disputes

One of the easiest ways to infringe upon the rights of another is when intellectual property is involved. Creations that sprung from the mind of someone else are their own, personal property even though it is not a tangible holding. Works of art, musical pieces, logos, designs and symbols as well as literary efforts belong to the person who created them. It is not uncommon, that someone else may have an idea or actually produce something that is very similar to something already in existence.

This is when the law will have to speak for the parties, to decide who owns the particular intellectual property.

Litigation Is Costly

Filing a law suit against someone who is thought to have stolen someone else's ideas and methods can be not only costly, but also very time consuming. The wheels of the law turn very slowly, being overloaded with the huge number of cases. During the entire time the suit is pending, no one can use the works in dispute. This can mean a heavy financial loss for whoever will be awarded the right to own the property. Missed opportunities can spell out financial losses that are never fully recoverable.

More Freedom and Control

Entering alternative dispute resolution, i.e. mediation or arbitration instead, can save time, money and especially aggravation. It allows both parties more control than court litigation would. Both parties are able to decide which law they want applied to the settlement of their dispute. If both parties are in a reasonable frame of mind, they can expedite their dispute to be handled efficiently and as quickly as possible. This not only saves them money, but also time and aggravation.

Fairness to Both Parties

The benefits of going through the simpler and less rigid processes of mediation or arbitration are several. Clients can exercise their autonomy which they could not in court. Both parties can also expect completely neutral decisions regarding the outcome of their dispute. Because neither party will have to fight in someone else's familiar territory, both parties can expect to gain a resolution that is seen through blind eyes.

Rules Protect Everyone

Some mediation and arbitration centers have rules that are designed to protect everyone's privacy. Public opinion and impact will not influence any outcome of the dispute. The mediator or arbiter can focus solely on solving the dispute fairly and in the best interest of both parties. A benefit to arbitration is that it cannot be contested. When the arbitrator's decision is made, the dispute is over and the decision is final. The difference between arbitration and mediation is that mediation permits more freedom to pursue other legal recourses.

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The Costs of Motorcycle Accident

At one point, motorcycles were the domain of a few thrill seekers or enthusiasts. However, the vehicles hold an appeal to a growing number of older and wealthier riders. The numbers are growing and in 2010 there were 8.2 million licensed motorcyclists riding across America. The percentage of households owning a motorcycle is also on a steady uptick. However, the number of motorcycle accidents is also on the rise with about 82,000 injured and 4,500 killed in 2010 alone.

According to the numbers, a person riding a motorcycle is 30 times more likely to crash than a person in a car or truck. They are five times more likely to be injured if they do crash. The average accident is projected to cost about $1.2 million depending on the severity and if the victim survives. A motorcycle rider is 39 percent more likely to survive if wearing a helmet, but not all states require helmets by law due to the efforts of motorcycle lobbyists.

States that do enforce universal helmet laws prevent the loss of revenue and save lives. It doesn’t stop there. Helmets also save the economy about $3 billion according to the Centers for Disease Control. The combined costs of medical care, insurance, legal fees, lost productivity and other expenses all add up. So while the crash could cost individuals a literal arm and leg, the economy takes an even greater hit.

Possibly due to the increasing popularity of motorcycles with those 40 years and older, the fatality rate for accidents in that demographic has risen. In 2009, the older age group accounted for 54 percent of the deaths following motorcycle accidents. In contrast, the rate of younger riders in a fatal motorcycle crash has decreased. The percentage of 30 years-old and younger fell to 27 percent and 39 years-old and younger fell to 19 percent.

All of these statistics demonstrate the staggering loss following an accident and don’t account for the causes beyond failing to wear a helmet. The data available from the Insurance Institute for Highway Safety indicates that motorcycle crashes are caused by further negligence of safety. 37 percent had alcohol in their system and older riders were the strong majority of drunk drivers. In addition, 25 percent of motorcycle crashes involved an unlicensed driver. 35 percent were speeding before the accident.

It’s a trend that can’t be ignored by insurance companies that end up raising rates to compensate for the frequency and cost of claims. Most commonly, the super sport models of motorcycles are claimed and require a policy three times as expensive as the average.  The average motorcycle repair is at least $5,000, but customized vehicles can be double. Popular chopper motorcycles have unique and rare parts that require an average of $10,723 to repair.

Despite the romance of hitting the open road with two wheels, the consequences of ignoring motorcycle safety are quite high. The obvious pain and suffering resulting from an accident is just a drop in the bucket compared to the rising numbers of deaths. At the same time, insurance rates are rising along with the costs of repair and the economic blow. Before climbing on a motorcycle, make sure to wear a helmet, get proper licensing and drive responsibly. 

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Understanding Legal Assistance

Many people who become involved in a civil legal dispute are unable to hire legal help. Because everyone has the right to defend themselves in a Court of Law, which includes the right to a fair trial and equality before the law, the state may provide some legal assistance in the form of legal aid.

Civil legal aid is given to people who are in dispute which is not criminal. If you are in a dispute, for example, with someone over a breach of contract, you could apply for legal aid. This is used to pay for your legal help or lawyer, and may sometimes have to be paid back partially or in full when the case is over.

You can get legal aid for a range of things, such as family and domestic disputes including custody care of children, division of property if a marriage dissolves, or domestic violence. Other scenarios include disputes over debt, whether you're suing or being sued by someone, or employment disputes. You can't apply for this sort of aid if you are getting a divorce.

In a criminal offence, you can apply for legal aid as soon as you are charged with an offence or receive a court summons. Again, there are some smaller offences (such as driving offences) which are sometimes not eligible for this.

To apply for legal aid, you will need to show that there is a dispute worth answering to in court, and you will need to prove that you do not have the means to pay your own court fees. This will mean proving your income and listing all your assets, including your house and car.

The decision on whether you are eligible for legal aid will be made by the Legal Services Agency (LSA). They make the decision on the basis of whether you can afford a lawyer and whether legal aid is justified in your case. If your case is not a domestic one - for example if it is to do with property - the LSA may decide whether or not to award legal aid based on the likelihood of the outcome.

The LSA will also assess how much of the aid you will have to pay back, depending on a range of factors. If you will be required to pay anything back, the LSA will tell you this at the time of the grant. The good news is you will never be asked to pay back more than the amount the LSA specifies, and sometimes it may be less.

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Common Words Used in Legal Reasoning

Legal reasoning has a lot of terms that might sound completely foreign to the layperson. By familiarizing yourself with these terms, you can gain a better understanding if you ever need to go through a legal proceeding. Below are listed a few of the more common terms that attorneys and other legal professionals will utilize when discussing law.

1. Precedent. Precedent is a very important concept. Basically, this means something that came before the current case, but it’s a bit more important than just this. Precedent refers to a pertinent legal decision that has bearing on the present case. For example, if there is a school segregation suit that has come up, the case Brown v. Board of Education might come up as precedent detailing why segregation is not legal. In short, when a judge makes a decision, other judges can use that decision to help them decide their current proceedings. This is why precedent is so important. Decisions don’t just influence the current case, but countless others that might occur in the future.

2. Tort. A tort is a type of case that looks at liability, and is also a lawsuit that looks at civil wrongdoing. For example, when you see those advertisements on television that talk about how you need to call a lawyer if you suffered ill effects from taking a medication, this is a type of tort. The drug manufacturer supposedly committed a civil wrongdoing when they distributed a faulty medication. A tort can occur on an individual basis or on a class action scale.

3. Jurisprudence. Jurisprudence is the application of law to a situation. It is more of a philosophy than anything else. It examines the different types of law and how to apply a correct judgment to a specific situation. There are several types of law, including natural and civil law. When a case is brought to court, when laws are applied to that specific situation, this is jurisprudence in its most utilized form.

4. Brief. A brief is a document that outlines a case and points out the salient facts (more on this later) and how the law should proceed with the current situation. It is not always a short document, as its name might imply. This is where interested parties make their cases and present them to the court. An amici brief is a popularly used type of brief. Amici comes from the Latin word “friend” and is a brief written by a “friend” of the court. This is a third party that has an interest in the case and wants to present a unique or supporting viewpoint for the judge to consider.

5. Salient fact. The salient fact of the case is the main point of contention. This is the fact that is judged by the court. Oftentimes, salient facts are not clear at first glance and can be argued over by opposing parties in the court. It is usually the judge’s decision to figure out which facts are salient and which facts are merely supporting.

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