In this briefing, Brian Cain, a consultant at LexisPSL Banking & Finance, looks at the case of LBI EHF v Raiffeisen Bank International AG  EWCA Civ 719 in which the Court of Appeal gives guidance on the way in which a party should go about forming a reasonable opinion on the fair market value of an asset or liability. The case considers the provisions of the interpretation of ‘fair market value’ as it appears in the Global Master Repurchase Agreement (GMRA) which is the standard market documentation used in repo transactions. The Court of Appeal’s guidance on this widely used documentation is welcome. Additionally, the judgment will be of wider interest to those who are parties to finance documents which require similar determinations to be made.
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