Process agent clauses  in credit agreements are valid. In Banco San Juan Internacional Inc v Petroleos De Venezuela SA [2020] EWHC 2145 (Comm), the High Court confirmed that proceedings brought by a bank against an oil company (PDVSA) had been properly served on a process agent, in accordance with contractual documentation (credit agreements) and CPR 6.11.

Structure of process agent clauses

The structure of the relevant process agent clauses was the standard form found in most credit agreement i.e.:

The court confirmed:

Although not a surprising judgment, it does re-confirm the validity and efficacy of process agent clauses which are common to most credit agreements.

It also reinforces the view that courts take a dim view of a party not complying with its contractual obligations and then using that as a defence to proceedings brought by another party seeking to enforce their contractual rights.