Bond Trustee Liability Sample Clauses
The Bond Trustee Liability clause defines the extent to which a bond trustee can be held responsible for actions taken in their role managing the interests of bondholders. Typically, this clause limits the trustee’s liability to cases of gross negligence, willful misconduct, or breach of trust, and clarifies that the trustee is not liable for losses resulting from actions taken in good faith or based on information provided by others. Its core function is to protect the trustee from undue legal exposure while ensuring they act diligently, thereby encouraging qualified parties to serve as trustees and maintaining trust in the bond issuance process.
Bond Trustee Liability. (a) For greater certainty, the Bond Trustee shall, without prejudice to the obligations of the Guarantor, as the case may be, or any receiver appointed pursuant to the Security Agreement in respect of such amounts, not be liable to pay any amounts due under Sections 10 and 11 hereof.
(b) It is hereby acknowledged and agreed that by its execution of this Agreement the Bond Trustee shall not assume or have any of the obligations or liabilities of the Cash Manager or the Guarantor under this Agreement and that the Bond Trustee has agreed to become a party to this Agreement for the purpose only of taking the benefit of this Agreement, including the right of the Bond Trustee to agree to amendments to this Agreement pursuant to Section 19 hereof. For greater certainty, the parties to this Agreement acknowledge that the rights and obligations of the Bond Trustee are governed by the terms of the Trust Deed and the Security Agreement. Any liberty or right which may be exercised or determination which may be made under this Agreement by the Bond Trustee may be exercised or made in the Bond Trustee’s absolute discretion without any obligation to give reasons therefore and the Bond Trustee shall not be responsible for any liability occasioned by so acting if acting in accordance with the terms of the Trust Deed and the Security Agreement, but without prejudice to the obligation of the Bond Trustee to act reasonably.
Bond Trustee Liability. It is hereby acknowledged and agreed that by its execution of this Agreement the Bond Trustee shall not assume or have any obligations or liabilities to the Guarantor, the Intercompany Loan Provider or the Cash Manager under this Agreement notwithstanding any provision of this Agreement and that the Bond Trustee has agreed to become a party to this Agreement for the purpose only of taking the benefit of this Agreement and agreeing to amendments to this Agreement pursuant to Section 13.7. For the avoidance of doubt, the parties to this Agreement acknowledge that the rights and powers of the Bond Trustee are governed by the Security Agreement. Any liberty or right which may be exercised or determination which may be made under this Agreement by the Bond Trustee may be exercised or made in the Bond Trustee’s absolute discretion without any obligation to give reasons therefor and the Bond Trustee shall not be responsible for any liability occasioned by so acting.
Bond Trustee Liability. 12.1 NO TRUSTEE BOND REQUIRED. A trustee named herein may serve without bond.