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The Loan Swap Agreement serves as a critical risk management tool in financial markets governed by English and Welsh law. This document is typically employed when borrowers wish to hedge interest rate exposure on existing loans, providing a mechanism to transform floating rate obligations into fixed rate payments or vice versa. The agreement incorporates comprehensive terms covering payment mechanics, default scenarios, termination rights, and credit support arrangements, while ensuring compliance with UK financial regulations and ISDA standards. It is particularly relevant in the context of large corporate loans, real estate financing, and infrastructure project finance.
