Par documentation

The set of legal standards used for the secondary trading of most loans. They differ from the other common standard, distressed documentation, in several points of detail and the transaction costs involved (such as legal fees) are typically much lower than for trades done with distressed documentation. Par documentation loan trades are typically settled much more quickly than those done with distressed documentation. Standard settlement times in the US leveraged loan market are T+7 for trades done with par documentation. In practice trades can take much longer to settle, but counterparties are entitled to delayed compensation in the case of a delay beyond seven days.

Compare distressed documentation