National Security and Investments Act 2021

Sanctions - national security - secured financing - UK.

(NSIA).

The UK's National Security and Investments Act empowers the relevant government minister to review - and if necessary intervene - in investments that may give rise to a risk to national security.

NSIA potentially relevant to all acquisition financings and all secured financings

"The NSIA is engaged where a relevant 'investment' takes place. This includes acquisitions of relevant shares or assets.

However, it extends also to ordinary secured financings, if the security assets include shares in relevant entities.

Depending on the nature of the security arrangement (see further below), a notification under the NSIA may be required when the security is taken, or at the point of enforcement.

Accordingly, the application of the NSIA must be considered in relation to all acquisition financings and also in relation to secured financings where the security package includes security over relevant shares."

The ACT Borrower’s Guide to the LMA’s Investment Grade Agreements - 6th edition - 2022 - p106.

See also

• An introduction to loan finance
• Documentation
• Documentation risk
• Facility
• Investment
• Investment Grade Agreements
• Loan agreement
• Loan market
• Loan Market Association (LMA)
• National security
• OFAC
• Office of Financial Sanctions Implementation (OFSI)
• RFR templates
• Sanctions
• Secured
• Security
• Share

Other resource

• The ACT Borrower’s Guide to the LMA’s Investment Grade Agreements