During the last 18 months there has been COVID-related disruption to numerous industries. Air travel was hit particularly hard, as restrictions around the world meant most people were unable to even board a plane.
But with countries now reopening to tourists, there will likely be increased demand for commercial flights across the globe. As the air travel economy grows once more we are anticipating a surge in the need for process agents to assist with aviation transactions.
Read on to find out more about the role a process agent can play in this industry.
Appointment of a Process Agent Is Often Required in Aviation Finance
Lenders involved in aviation financing often require the appointment of a U.K. or New York process agent. The process agent (also referred to as an agent for service of process or a contract agent) serves as a point of contact in the jurisdiction where the parties may not have a presence so that legal process related to the transaction’s operative agreements may be served.
England and New York are both widely recognised as pre-eminent commercial and financial centers. Both have substantial bodies of common and statutory law addressing a broad range of commercial and financial matters that afford parties guidance and predictability should any legal proceeding be commenced.
Importance of a Process Agent
As aviation finance continues to grow, especially within Asia, there is likely to be an increase in financing transactions that require a process agent. Whilst appointing a process agent is only one condition precedent (in addition to the more material financial considerations negotiated among all parties to the transaction), it is important that the company appointing the process agent understands the agent’s role and develops a relationship with a trusted process agent partner.
It is not uncommon that an initial aviation finance arrangement may be amended for a variety of reasons, including novation. Therefore, developing a relationship with the original process agent will be helpful in supporting the ease of future amendments among the parties.
Do you need a process agent? In our recently updated white paper, we have outlined how to appoint a reliable process agent that meets your transactional needs, and the benefits you could gain as a result. Click on the button below to download the white paper for more information.
This content is provided for informational purposes only and should not be considered, or relied upon, as legal advice.