The Cause of bank failure

One member of the group is norm all toldy appointed to act as the managing or lead hope for the syndicate and it is the role of this bank to order all negotiations, payments and administration between parties once the contract has been executed-it Is a multi bank action with each bank acting on a several(prenominal) basis, which means that each ann. acts on its own without responsibility for the other banks in the syndicate.If a bank fails to honor its obligations as a member of a syndicate, the other syndicate banks have no legal obligation to contact them on that banks behalf. Syndicated loans atomic number 18 normally used to finance the purchase of seat of government assets or the acquisition of a nonher business line or comp some(prenominal). The syndicated course credit market is one of the puffyst and most flexible sources of capital in the external market place. Loan syndication do happen In Zanzibar but are not very common. PROJECT LOANS project loans has been used to describe all types of financing of projects, both with and without recourse. A financing of a particular scotch unit in which a lender is satisfied to look ab initio to the interchange flows and earnings of that economic unit as the source of monetary resource from which a loan will be repaid and to the assets of the economic unit as collateral for the loan. Involve loans to finance major capital Investment projects for which the cash flow arising from the project will either be the sole or main repayment source.Such projects are usually financed by major banks because of the large amounts involved and the need for full technical evaluation for example create a major dam or prospecting for 011. The loan Is usually provided on a medium or long term basis. There are often other side benefits resulting from segregating a financing as a project financing which whitethorn have a bearing on the motives of the company seeking such a structure. These benefits include Credit sourc es may be available to the project that would not be available to the sponsor.Guarantees may be available to the project that would not be available to the sponsor. A project financing may enjoy better credit cost and interest costs in situations In which a sponsors credit is weak. higher(prenominal) leverage of debt to equity may be achieved. Legal requirements applicable to certain(p) investing institutions may be met by the project but not by the sponsor. C) LEASING -A lease is a contract wherein, over the term of the lease, the owner of the equipment permits another entity to use it in exchange for a promise by the latter to make a series of payments.The owner of the equipment is referred to as the lesser. The entity that is beingness granted permission to use the equipment is referred to as the lessee. A typical leasing transaction works as follows. The lessee first decides on the equipment needed. The lessee then decides on the manufacturer, the make, and the model. The l essee specifies any special features desired, the terms of warranties, guaranties, delivery, installation, and services. The lessee also negotiates the price. After the equipment and terms have 1 OFF