Banking and Finance

Overview

Arnon, Tadmor-Levy’s leading banking and finance practice is one of the largest in Israel, with extensive activity in all the various legal aspects of this field. Our clients include Israeli and foreign banks, investment houses and financial bodies, that are among the largest and most recognized in the country and the world.

Our extensive range of services includes: provision of comprehensive regulatory advice; representation in diverse financial transactions; consulting to foreign banks and financial institutions on the establishment of local branches and representative offices in Israel; advising on anti-money laundering laws; marketing of securities, financial instruments and complex investment products; derivatives contracts; securities lending transactions; licensing of various financial services; and more.

Financing Transactions

One of our core areas of expertise is representing banks and institutional lenders in financing transactions. In this framework, the firm provides numerous consulting and support services to most of Israel’s banks and several institutional bodies.

The firm represents borrowers in complex financing transactions, including debt restructuring, and works with companies raising non-bank credit in bond transactions.

Financial Derivatives

We provide opinions and advice to international organizations, including providing opinions on Israeli law to members of the  International Swaps and Derivatives Association (ISDA), the International Capital Market Association (ICMA), and the International Securities Lending Association (ISLA) – which include all the world’s leading banks and financial institutions – in relation to collateral arrangements in derivatives transactions based on the ISDA Master Agreement, for securities repurchase transactions (REPO) and securities lending. We also represent local and foreign clients in negotiations on such transactions.

Payment Systems

At Arnon, Tadmor-Levy, we have a wealth of experience with payment systems and methods, including assisting major market players in everything related to payment services and products, covering credit and debit cards, digital payments, mobile payments, virtual currencies, and other payment methods.

In the prestigious rating guide, Chambers Global, our clients wrote about our payment systems practice that “the lawyers understand the regulations and the regulator in a way that allows them to properly manage the business”.

Our deep understanding of this practice area enables us to give our clients security and responsible advice, from the initial planning stages of their products to their expansion and growth to other countries.

Representing credit cards companies, banks, and other leading financial institutions in Israel in complex business transactions, we have been involved in the largest transactions in the country. When required, the capabilities and extensive experience of our colleagues in commercial litigation and class action representation give our clients added security.

Regulation

The firm assists banks, investors, institutional bodies, private entities (commercial and non-profit), as well as controlling owners, shareholders and officers of such organizations, in everything related to licensing their activities, analyzing the comprehensive and complex requirements of various regulators, and adapting the procedures and documents used by these organizations to ensure they meet legal and regulatory requirements. We also provide ongoing advice to financial bodies regarding compliance with regulatory provisions.

Project Finance

The Project Finance practice at Arnon, Tadmor-Levy is positioned at the top of the global and local ranking tables of all known rating guides in Israel and the world. We pride ourselves on our unique experience, which includes representing players in most of Israel’s major infrastructure projects and in particularly complex financing transactions.

Banking Litigation and Collection

For many years, we have represented Israeli and foreign banks, investment houses, and international financial bodies in all areas of banking litigation, in courts, arbitrations, and other tribunals.

Among other things, we have gained extensive experience in representing banks in complex lawsuits, filed against them, in various fields, including class actions and derivative suits concerning various matters, such as complex transactions in derivatives the bank’s services; interest and fee charges; provision and suspension of loans and credit lines; demands of shareholders; and more.

In addition, the firm has a large department that deals with debt management, collection, and enforcement, having gained extensive experience in securities enforcement proceedings and collecting problematic debts for banks and other lenders.

Venture Lending

The firm has a robust venture lending practice and has been a leader in the field for over twenty years. The firm represents both lenders and borrowers and is active in venture debt transactions from early stage companies up until complicated syndicated cross-border venture lending transactions.

Client Testimonials, The Legal 500 | 2025

“What sets this team apart is their profound technical expertise, combined with an in-depth understanding of market trends. They excel at guiding clients through complex transactions to a successful close. The team’s capacity to address unexpected challenges and seamlessly step in for one another when needed is truly impressive.”

“Professionalism, responsiveness, and a keen ability to balance customer needs with strict regulatory requirements.”

Client Testimonials, Chambers Global | 2025

“Arnon, Tadmor-Levy also supports activities outside of Israel, either on their own, with local counsel, or simply by referring to their excellent contacts worldwide. The Israeli regulatory regime is complex, sometimes confusing, and always challenging, but the firm are a first-rate guide through this maze.”

Arnon, Tadmor-Levy is extremely good at follow-up after deals have been completed. They are thorough and efficient in all respects.”

Client Testimonials, Chambers Global | 2024

“The firm, as a whole, covers the full spectrum of financial services regulations and related matters. Different individuals cover portions of the spectrum, and they work together in cohesive teams.  They are business-savvy, with the ability to see trends across the market due to their extensive client base.”

“The team is always available, with strong execution and follow-up.”

Client Testimonials, The Legal 500 | 2024

Arnon Tadmor-Levy’s banking and fintech team has an in-depth understanding of our business, products and needs. The team is highly experienced, with extensive knowledge of the fintech and banking markets and exceptional expertise in the intricate Israeli legal and regulatory landscape, enabling them to provide tailored and grounded advice.”

“A highly qualified firm with extensive experience which has conducted major local and international transactions. It is consistently a leader in the Israeli market and enjoys the trust of many leading companies in various sectors.”

What the team is known for, Chambers Global | 2023

The firm fields a highly regarded banking and finance group with notable capabilities acting for lenders and borrowers, as well as an acclaimed litigation offering. It has significant experience handling debt restructuring, securities and regulatory compliance, as well as representing lead arrangers in significant loan facilities. The firm continues to be at the forefront of new issues in the Israeli market, advising on matters such as fintech.

“The firm provided practical, usable advice on the most complex of our legal questions.”

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Venture Lending in Israel:Fixed vs. Floating Charge -The Risks of Recharacterization
Intro Welcome to the fourth installment in our series of articles providing an overview of the various aspects relating to the venture lending industry in Israel, including some of the legal, commercial and regulatory factors that should be taken into consideration by anyone looking to enter into this realm. The main goal of this series is to equip readers with valuable knowledge and understanding of the venture lending landscape in Israel, helping them navigate and capitalize on the unique opportunities it presents, particularly for those looking to become stakeholders in the Israeli startup ecosystem. In our fourth installment below, we provide a high-level overview regarding taking of security in Israel focusing on some of the challenges in maximizing lender priority rights. Taking Security in Israel For a security interest to be effective against third parties, such security interest should be properly registered with the relevant authority in Israel. In general, secured creditors have preference with regard to the property over which they hold a security interest, provided that the charge was duly registered and perfected. Israeli law has a hierarchy between types of security interests, primarily fixed and floating charges, the strongest being a fixed charge over specific assets which provides a nearly absolute preference to the creditor. There are some exceptions to the preference of fixed charge secured creditors – these include certain real property taxes, possessory liens on movable assets, certain liquidation expenses (incurred in connection with the realization of the assets) and in the case of fraudulent conveyance. In addition, a creditor that has valid set-off rights can prevail over a secured creditor who has a security interest over rights of the pledgor, which are subject to set-off. Fixed Charge vs. Floating Charge A fixed charge is a charge over a specific set of assets at a certain point in time, whereas a floating charge is a blanket charge over all of the pledgor’s present and future assets, which crystalizes upon the initiation of enforcement proceedings. This distinction is crucial in determining the priority and distribution of proceeds in insolvency proceedings. While a creditor secured by a fixed charge will be entitled to all of the proceeds derived from the realization of the assets subject to the fixed charge, in accordance with the Israeli Insolvency and Economic Rehabilitation Law, 5779-2018, a creditor secured by a floating charge will be entitled to priority on only 75% of the proceeds derived from the realization of the assets subject to the floating charge, and the remaining 25% of the proceeds will be added to the pool of assets available for distribution among both the secured and unsecured creditors, pro rata. Typically Pledged Assets While the floating charge will capture all assets of the borrower existing at the time of enforcement other than assets expressly excluded from such charge, the following assets are typically pledged in the context of an Israeli technology company lending transaction under a specific fixed charge: Fixed assets (computers, desks, machinery, etc.); Registered and unregistered intellectual property Rights under commercial agreements/accounts receivables; Insurance proceeds; Bank accounts; and Equity interests. It is advisable to include provisions in the loan documents requiring the borrower to notify the lender(s) and/or collateral agent regarding the subsequent acquisition of material assets, including intellectual property, following the closing of the transaction, and allowing for periodic amendments of the underlying fixed charge security agreement in order to pick up such new assets and recognize them as being subject to a fixed charge as opposed to the inferior coverage provided under the floating charge. Recharacterization of a Security Interest with respect to Bank Accounts and/or Accounts Receivable In the S.R. Accord vs. the State of Israel, et all. court case from 2022, the Israeli Supreme Court characterized a security interest created over bank accounts and accounts receivable as a floating charge, and not a fixed charge, as opposed to the characterization provided under the respective security agreement. As part of the court's decision, it set out certain indications as to the practical measures that could be taken in order to increase the likelihood that such security interests would be characterized as a fixed charge, as opposed to a floating charge. These key criteria are: (i) the level of control the creditor has over the pledged asset, and (ii) the extent to which the pledged asset is defined with sufficient specificity. Generally speaking, the greater the level of control that the creditor has over the asset in question and the detail in which such asset is specifically identified in the security agreement, the more likely it is that the security interest would be affirmed by the courts as a fixed charge, as originally intended. Ultimately, the court provided indicative guidelines but not clear cut rules. The measures set forth above are of course subject to the commercial agreement of the parties. It should be noted that, from a practical perspective, it would be uncommon in a typical venture lending transaction to provide a sufficient level of control to meet the court’s test. Moreover, Israeli banks do not sign deposit account control agreements as a matter of policy.  A common approach taken by lenders with regards to Israeli bank accounts, in order to mitigate exposure that may arise from the potential recharacterization of a fixed charge over bank accounts, is to set a limit with respect to the aggregate amount of funds that may be held in such accounts during the term of the loan, with the borrower providing a covenant not to exceed such predetermined limit. It is also common for many US based lenders to insist on a certain amount of cash to be deposited in US bank accounts of the borrower subject to an account control agreement. About Us Arnon, Tadmor-Levy proudly stands among Israel’s most prominent law firms, with one of the largest and most respected banking and financial services departments. We have extensive experience in cross-border and other complex financing transactions, representing both lenders and borrowers. Our trusted reputation spans a vast clientele, including leading Israeli and international banks and other financial institutions. Should you have any questions, or are interested in learning more about the various aspects of the Israeli venture lending and private credit industry, please feel free to reach out to a member of our venture lending
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Recognition