The central function of the agent is to serve as a channel between borrowers and lenders. The representative owes contractual obligations to the borrower and lenders. In TORRE ASSET FUNDING v RBS (2013), mezzanine lenders stated that it was the agent`s duty to inform them of the date of a default. The agent`s relationship tends not to be fiduciary.  The heart of a fiduciary relationship is that they can reasonably be expected to subordinate their own business interests to those of their beneficiary, which is not representative of a banking relationship under English law. They are; Before a union agreement is reached, the parties, the lenders and the borrower, agree on a contract that determines the structure, rules and duration of the syndicated loan; this contract is the insurance contract and is akin to a subscription contract. The same unions will take out different types of loans, such as temporary loans. B, revolving loans and an availability line that matches buyers. In the meantime, the recipient can choose the monetary portfolio necessary to meet his or her needs. The borrower is not required to meet all the syndicated lenders to negotiate the terms of the loan. On the contrary, the borrower only has to meet with the organizing bank to negotiate and agree on the terms of the loan.
The arranger then does the most work to create the union, involve other lenders and discuss credit terms with them to determine the amount of credit each lender will bring. These players use two key legal concepts to overcome credit difficulties with significant ceilings: the agency and trusts. A single bank cannot be alone on loan or able to provide the full amount. The essence of syndication is that two or more banks agree to lend to a borrower on common terms, governed by a single agreement. This agreement not only governs the relationship between lenders and borrowers, but especially between lenders. Most loans are documented on the basis of LMA precedents; in England, this will not be done under the “written standard conditions” of lenders for the purposes of UCTA 1977.  Unions may use a variety of currencies in their credits based on customer needs. The advantage of syndicated loans is that several currencies can be used in the group if the borrower requires it. Once the beneficiary and arranger have negotiated and agreed on the duration of the loan, it is generally the responsibility of the arranger to prepare the creation of the union or grouping; this saves time and energy in financing. There are three types of syndication worldwide: a signed agreement, syndication with the best efforts and a club agreement.
The European market for bond-financed syndicated loans consists almost exclusively of signed transactions, while the U.S. market contains much of the best effort. The arranger creates an information memo (IM) describing the terms of the transactions.