Project finance — Checklist for representations and warranties

Introductory note:
Most facility agreements will contain a section in which the borrower, any guarantors and any security providers (often referred to as obligors”) make a number of statements of fact. These statements are known as representations and warranties (representations). They set out the legal and factual basis on which the lender(s) is/are prepared to make the facility available to the borrower and place the risk of unknown issues on the borrower.
It is important from any lender's perspective that the borrower acknowledges that the lender(s) has/have entered into the facility agreement in reliance on the representations.
This checklist provides a list of representations that legal practitioners should consider including in a facility agreement and/or a common terms agreement for a project finance transaction.