LMA.Automate: How to get the best out of it

In 2021, the Loan Market Association (LMA) launched a documentation automation service called LMA.Automate. It enables subscribers to create, negotiate, collaborate, execute and analyse LMA template documents on the platform. The automated LMA templates available so far are confidentiality agreements, a mandate letter, an investment grade term sheet and the full set of real estate finance documents. The automation of investment grade documentation is in the pipeline. LMA.Automate is a cloud-based platform powered by Avvoka software and hosted on a private Microsoft Azure cloud environment.

LMA.Automate: getting started

Users can tweak the existing automated LMA template, e.g. to include jurisdiction specifics, or can create a document with the existing automated template. Once a template is selected, users are presented with a dropdown questionnaire covering the type of facility, currency, amounts, names, roles and details of the parties, etc. and are prompted for answers. The document is generated based on these answers and can be further edited on the platform, which has the typical Microsoft Word features. Users can also edit their answers in the questionnaire, which are then automatically changed in the document.

As a next step, users can download the document and proceed "old school" by circulating the newly created document via e-mail or send the document to other parties for review on the platform, setting varying editing rights. External parties without an LMA.Automate subscription can edit, comment and send the document back to the author on the platform, with the document's editing history and status being visible. Once agreed, the document can be signed by electronic signature and distributed to the parties. The analytics section of LMA.Automate provides users with an overview of parties as well as clauses and documents which have been created and negotiated on the platform.

"Document automation using LMA.Automate or another format, while perhaps daunting at first, has the potential to reduce the time needed to produce documentation, eliminate inaccuracies, save costs and enhance negotiations and data analytics."

Thinking ahead

Document automation using LMA.Automate or another format, while perhaps daunting at first, has the potential to reduce the time needed to produce documentation, eliminate inaccuracies, save costs and enhance negotiations and data analytics. This leaves more time for drafting and negotiating those terms of finance documents which should be tailor-made for the relevant transaction with the assistance of your lawyers. Schoenherr, being one of the founding members of Legal Tech Hub Europe, is on the constant lookout for innovation. We closely monitor the development of such tools and use them where appropriate and efficient to deliver the best product for our clients. Schoenherr has developed together: your transaction manager, an award-winning client collaboration platform for digitalised transaction and process management.

author: Viktoria Stark