But it turns out that there is poetry in all this legal obscurity. There are “midnight clauses” and “bankruptcy cascades” that rush out of an “insolvency pool” as a boon to creditors (at least for the highest people). Listen to the first episode on legalese, in which we discover the meaning of “snooze you lose”, “mutatis mutandis”, “ipsa loquitur”, “pari passu” and “in rem security”, “reserve of rights” and “act raisonly”. A Yank-a-Bank provision in loan agreements allows a borrower to replace a lender if that lender has defaulted, has become insolvent, requires certain tax compensation, or if a lender has refused to accept a proposed amendment or modification to the agreement. In the case of a proposed change, a Yank-a-Bank provision ensures that an individual lender cannot block a change that must be unanimously approved in order to obtain better terms from the borrower. Many etymologies have been suggested for the word Yankee, but modern linguists generally reject theories suggesting that it originated in indigenous languages. [9] This includes a theory advanced in 1789 by a British officer who said it was derived from the Cherokee word eankke (“coward”) – despite the fact that such a word did not exist in the Cherokee language. [9] Another theory suggests that the word was borrowed from the Wyandot pronunciation[10] of the French l`anglais, meaning “l`Anglais” or “la langue anglais”, which sounded like Y`an-gee. [9] [11] A “replacement of lender” clause, colloquially referred to as the “Yank-a-Bank” provision, allows a borrower to replace a single member of the loan syndicate with a new lender in certain circumstances. The “cunning” lender allocates its loans, usually at par, to an eligible assignee, who is then entitled to the full amount of its principal, as well as accrued interest, fees and other amounts owing for those obligations. The online dictionary of etymology gives the Yankee its origin around 1683, attributing it to English settlers who refer insultingly to Dutch settlers (especially privateers). The English privateer William Dampier reported his relations in 1681 with the Dutch privateer Captain Yanky (or Yanke). The linguist Jan de Vries noted this in the 17th century.

In the nineteenth century, a pirate named Dutch Yanky was mentioned. [16] The Life and Adventures of Sir Launcelot Greaves (1760) contains the following passage: “Pull your chair forward, take your bunk and continue your story in a direct course without yawning like a Dutch Yanky.” According to this theory, Dutch settlers in New Amsterdam began using the term against English settlers in neighboring Connecticut. [15] The short form Yank is used as a pejorative, pejorative, playful or colloquial term for Americans in the United Kingdom,[45] Australia,[46] Canada,[47] South Africa,[48] Ireland,[49] and New Zealand. [50] The full Yankee can be considered slightly pejorative depending on the country. [51] The Spanish variant yanqui is sometimes used in Latin American contexts. [52] Venezuelan Spanish derived the word pitiyanqui c. 1940 around the oil industry of Petty Yankee or Little Yanqui,[53] a derogatory term for those who profess an exaggerated and often ridiculous admiration for everything that comes from the United States. In the wake of the 2008 financial crisis, Yank-a-Bank regulation gained popularity as a means against lenders who were unable to meet their contractual loan obligations. Creditors whose contracts contain such provisions run the risk of being terminated if one of the contractually stipulated situations (default, insolvency, refusal of consent, etc.) occurs. A Yank-a-Bank provision is not always included in a loan agreement. Borrowers generally negotiate the inclusion of such provisions to ensure that a non-consenting lender does not prevent a change that would otherwise be adopted, and to discourage lenders from requesting certain tax offset payments or continued performance. Lenders sometimes resist the inclusion of such a provision because they fear being removed from a transaction because they are simply exercising their rights after investing time and energy to sign the agreement.

Depending on the outcome of the negotiations, a Yank-a-Bank provision may be limited to amendments requiring unanimous consent and that the provision may only be invoked to attract one or more lenders whose total percentage of the syndicate is below a certain threshold. Britannica English: Translation of Yank for Arabic speakers The meaning of Yankee has changed over time. In the 18th century, it referred to New England residents descended from the area`s first English settlers. Mark Twain used the word in this sense in the following century in his 1889 novel A Connecticut Yankee at King Arthur`s Court. As early as the 1770s, the British applied the term to anyone from the United States. In the 19th century, Americans in the southern United States used the word in reference to Americans in the northern United States, but not to new immigrants from Europe. As a visitor to Richmond, Virginia, remarked in 1818: “Enterprising people are mostly foreigners; Scots, Irish and especially men from New England or Yankees, as they are called.” [6] These sample phrases are automatically selected from various online information sources to reflect the current use of the word “Yank”. The views expressed in the examples do not represent the views of Merriam-Webster or its editors. Send us your feedback. A Yank-a-Bank provision is a useful tool for borrowers in situations where borrowers seek approval from all lenders in a case or incur additional costs due to certain claims from a lender. However, borrowers should be aware of some caveats. Borrowers are responsible for finding a new lender, as well as the costs associated with awarding the liquidating lender`s interest.

Because this is an assignment, the new lender must be a qualified assignee under the same rules, rules and conditions that applied to all lenders that originally entered into the agreement. In addition, borrowers should also consider the impact that their use of a Yank-a-Bank provision will have on their relationship with a lender for future transactions. The shipping industry is characterized by the need for significant investments, where revenues can be volatile and vessels have significant operating costs. Sometimes lender approvals regarding a loan document breach are inevitable. Recently, the industry has also faced a situation where some financial institutions have expressed a desire to exit the sector. Changes or waivers involving such financial institutions can be particularly difficult, and a Yank-a-Bank provision is a way to remedy a situation where another lender may intervene. The light in this rowdy and poetic world of legalese shows that we have pressed our lawyers to reveal some of their secret tricks they resort to when things don`t go quite as planned despite good intentions (we`re sure). They explain what harmless phrases such as “to the best of our knowledge and belief according to demand” actually mean. We discover the “data room”, a place that usually has no natural light, a place where no one really wants to land.

We discover what “yank the bank” is and what “drop dead clause” means. In Australia, the term Seppo is sometimes used as a pejorative reference to Americans. It derives from traditional rhyming slang, where Yank is replaced by a septic tank and shortened to Seppo. [54] The term Yankee can have many different meanings in the United States, contextually and geographically dependent. Traditionally, Yankee has most often been used to refer to a New England resident descended from the region`s early settlers, often suggesting Puritanism and thrifty values. [35] In the mid-20th century, some speakers applied the word to any American who inhabited the area north of the Mason-Dixon Line, although they were still generally concentrated in New England. The New England Yankees could be used to differentiate themselves. [36] In New England itself, however, the term refers even more specifically to former New England residents of English origin.