A recent decision by the U.K. Supreme Court has resolved an ambiguity in the Loan Market Association Standard Terms and Conditions for Par Trade Transactions.  This article summarizes the facts underlying the dispute, the relevant provisions of the LMA terms and the Supreme Court’s reasoning.  For more on loan transactions governed by the LMA terms, see “The Impact of Asymmetric Information, Trade Documentation, Form of Transfer and Additional Terms of Trade on Hedge Funds’ Trade Risk in European Secondary Loans (Part Two of Two),” Hedge Fund Law Report, Vol. 4, No. 38 (Oct. 27, 2011); “Regulatory, Tax and Credit Documentation Factors Impacting Hedge Funds’ Trade Risk in European Secondary Loans (Part One of Two),” Hedge Fund Law Report, Vol. 4, No. 37 (Oct. 21, 2011); and “Should Hedge Funds Include Automatic Termination as a Term of Bank Debt Trades on the New Loan Market Association Forms?,” Hedge Fund Law Report, Vol. 3, No. 10 (Mar. 11, 2010).