Global Commercial Paper Dealer Agreement Launched

The Association, in conjunction with the International Primary Market Association (IPMA), recently launched the first-ever Model Global Commercial Paper Agreement, at a September workshop conducted in London. The workshop was attended by more than 60 legal practitioners from law firms and in-house legal departments of Association member firms.

    The agreement was designed to document commercial paper arrangements between issuers and dealers, so that issuance may take place in both the United States and European markets. The ability to use a single agreement for such arrangements will promote consistency and efficiency in the documentation process by reducing and focusing the negotiation of terms. The model agreement is based on the Association’s Model Commercial Paper Dealer Agreement, which has been widely used in CP programs dedicated to the U.S. market, and the forms of dealer agreements that are widely used in the Euro CP market in Europe.

    As with all other Association model agreements, the agreement is a recommended form, and member firms that use the agreement may vary its terms from transaction to transaction.

    To assist users of the agreement, the Association has prepared guidance notes. A copy of the agreement and its guidance notes is available on the Association’s Web site.

    For more information, contact Michel de Konkoly Thege, Vice President and Associate General Counsel, at 212.440.9476.

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