Finance Law Newsletter

Legal Considerations in Financing Japanese Aquaculture (Part 3)

Finance Law Newsletter

As project financing repayment/distribution sources are limited to a project’s cash flow, financial institutions will not obtain full loan repayment unless the project generates the anticipated revenue. In this sense, it can be said that financial institutions bear the risks inherent in projects (project risk). Therefore, project financing requires to manage project risk that is within the acceptable range of the financial institution. One of the characteristics of project financing is that in the event of a deterioration in project earnings and the borrower’s default, financial institutions do not necessarily collect receivables by selling or realizing the collateral property, but rather can collect receivables by transferring all the rights and contractual relationships of the project to a third party (mainly...To read the full article, please see the PDF file

*This article is also available in Japanese.

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