Transaction parties are frequently located in different countries. These ‘cross-border’ transactions are frequently governed by English law. A process agent is required when a transaction party does not have a presence in England, but the transaction is subject to English law.
If a transaction party does not have a presence or address within England, the process for serving these court papers can be very cumbersome. It is therefore a market standard that each transaction party with no presence in England will appoint a process agent in England, and agrees that service at the address will constitute service for court procedures.
Cross-border transactions that are frequently subject to English law are loans, swaps, credit facilities, leasing agreements. For instance, assume a borrower locate d in Italy receives a loan subject to English law. The lender would usually require the borrower to appoint a process agent in England in order to receive court papers on behalf of the borrower, if court proceedings become necessary.