Bank's Relationship Sample Clauses
The 'Banks’ Relationship' clause defines the legal and operational relationship between the banks involved in a transaction, such as in a syndicated loan or multi-bank financing arrangement. It typically clarifies whether the banks are acting jointly or independently, outlines their respective rights and obligations, and may specify that no partnership or fiduciary relationship is created among them. This clause ensures that each bank understands its role and limits liability, thereby preventing misunderstandings and disputes regarding collective or individual responsibilities.
POPULAR SAMPLE Copied 1 times
Bank's Relationship. The Bank and the Obligors expressly agree that the relationship of the Bank to the Obligors is that of a lender only, the intent of this provision being to clarify and stipulate that the Bank is not a partner or a co-venturer of the Obligors and that the Bank's sole interest in the Collateral is for the purpose of security for repayment of the Obligations of the Borrower.
Bank's Relationship. Nothing contained in this Agreement or any other Loan Document and no action taken by the Banks and the Borrower pursuant hereto or thereto may, or may be deemed to, make any Bank and the Borrower a partnership, an association, a joint venture, or other entity. The sole relationship between the Banks and the Borrower is that of lenders and borrower, respectively. Each Bank’s obligation to make any Loan is several, and not joint or joint and several, and is conditioned upon the performance by all other Banks of their obligations to make Loans. A default by any Bank will not increase the Commitment of any other Bank. Any Bank not in default may, if it desires, assume in such proportion as the non-defaulting Banks may agree the obligations of any Bank in default, but is not obligated to do so.