Co-Borrower Liability Clause Samples
The Co-Borrower Liability clause establishes that all co-borrowers on a loan are jointly and individually responsible for repaying the full amount owed. This means that if one co-borrower fails to make payments, the lender can seek repayment from any or all co-borrowers, regardless of who actually received the loan funds or benefited from them. The core function of this clause is to ensure the lender has multiple parties to pursue for repayment, thereby reducing the lender's risk and increasing the likelihood that the debt will be fully repaid.
Co-Borrower Liability. Any Co-Borrower may, acting singly, request Credit Extensions hereunder. Each Co-Borrower hereby appoints each other as agent for the other for all purposes hereunder, including with respect to requesting Credit Extensions hereunder. Each Co-Borrower hereunder shall be jointly and severally obligated to repay all Credit Extensions made hereunder, regardless of which Co-Borrower actually receives said Credit Extension, as if each Co-Borrower hereunder directly received all Credit Extensions. Each Co-Borrower waives (a) any suretyship defenses available to it under the Code or any other applicable law, including, without limitation, the benefit of California Civil Code Section 2815 permitting revocation as to future transactions and the benefit of California Civil Code Sections 1432, 2809, 2810, 2819, 2839, 2845, 2847, 2848, 2849, 2850, and 2899 and 3433, and (b) any right to require Bank to: (i) proceed against any Co-Borrower or any other person; (ii) proceed against or exhaust any security; or (iii) pursue any other remedy. Bank may exercise or not exercise any right or remedy it has against any Co-Borrower or any security it holds (including the right to foreclose by judicial or non-judicial sale) without affecting any Co-Borrower’s liability. Notwithstanding any other provision of this Agreement or other related document, each Co-Borrower irrevocably waives all rights that it may have at law or in equity (including, without limitation, any law subrogating a Co-Borrower to the rights of Bank under this Agreement) to seek contribution, indemnification or any other form of reimbursement from any other Co-Borrower, or any other Person now or hereafter primarily or secondarily liable for any of the Obligations, for any payment made by a Co-Borrower with respect to the Obligations in connection with this Agreement or otherwise and all rights that it might have to benefit from, or to participate in, any security for the Obligations as a result of any payment made by a Co-Borrower with respect to the Obligations in connection with this Agreement or otherwise. Any agreement providing for indemnification, reimbursement or any other arrangement prohibited under this Section 9.8 shall be null and void. If any payment is made to a Co-Borrower in contravention of this Section 9.8, such Co-Borrower shall hold such payment in trust for Bank and such payment shall be promptly delivered to Bank for application to the Obligations, whether matured or unmatured.
Co-Borrower Liability. The Student Borrower is obligated to repaythe amounts owed under this Loan Agreement. Each Co-Borrower is obligated to repay the amounts owed under this Loan Agreement. The Authority or any other Holder is entitled to collect the amounts owed under this Loan Agreement from the Student Borrower without attempting to collect such amount from any Co-Borrower, and is entitled to collect the amounts owed under this Loan Agreement from any Co-Borrower without attempting to collect such amount from the Student Borrower or any other Borrower. The Student Borrower’s and each Co- Borrower’s obligations include the obligations to pay the principal and interest on the loan made under this Loan Agreement in the amounts and at the times specified herein, give notice of address and name changes, and pay collection costs to the extent permissible under the law. Neither the Authority nor any other Holder is required to send copies of any billing statements sent to the Notice Borrower to any other Borrower. If there is more than one Borrower, all parties agree that any communication between the Authority or any other Holder and any Borrower will be binding on all parties, and that all provisions of this Loan Agreement will apply to all Borrowers individually and collectively. This Paragraph Applies to Loan Agreements Signed Electronically. I understand that I am not required to sign electronically this Loan Agreement and any related notices that require signature. If I choose to sign electronically this Loan Agreement and any related notices that require signature, I intend: (i) my electronic signature to be an electronic signature under applicable federal and state law, (ii) any printout of your electronic record of this Loan Agreement and related notices to be an original document, (iii) to conduct business with you by electronic records and electronic signatures, and (iv) that this Loan Agreement will not be governed by Article 3 of the Uniform Commercial Code, and my obligations under this Loan Agreement will not be subject to, but any transfer of my obligations will be subject to, Article 9 of the Uniform Commercial Code. For Alabama Residents: CAUTION — IT IS IMPORTANT THAT YOU THOROUGHLY READ THE CONTRACT BEFORE YOU SIGN IT. For Iowa Residents: NOTICE TO CONSUMER: [1] Do not sign this paper before you read it. [2] You are entitled to a copy of this paper. [3] You may prepay the unpaid balance at any time without penalty and may be entitled to receive a refund of unea...
Co-Borrower Liability. The Student Borrower is obligated to repaythe amounts owed under this Loan Agreement. This paragraph applies to Loan Agreements signed electronically. I understand that I amnot required to sign electronically this Loan Agreement and any related notices that require signature. If I choose to sign electronically this Loan Agreement and any related notices that require signature, I intend: (i) my electronic signature to be an electronic signature under applicable federal and state law, (ii) any printout of your electronic record of this Loan Agreement and related notices to be an original document, (iii) to conduct business with you by electronic records and electronic signatures, and (iv) that this Loan Agreement will not be governed by Article 3 of the Uniform Commercial Code, and my obligations under this Loan Agreement will not be subject to, but any transfer of my obligations will be subject to, Article 9 of the Uniform Commercial Code. For Alabama Residents: CAUTION — IT IS IMPORTANT THAT YOU THOROUGHLY READ THE CONTRACT BEFORE YOU SIGN IT. For Iowa Residents: NOTICE TO CONSUMER: [1] Do not sign this paper before you read it. [2] You are entitled to a copy of this paper. [3] You may prepay the unpaid balance at any time without penalty and may be entitled to receive a refund of unearned charges in accordance with law. IMPORTANT: READ BEFORE SIGNING. The terms of this agreement should be read carefully because only those terms in writing are enforceable. No other terms or oral promises not contained in this written contract may be legally enforced. You may change the ter ms of this agreement only by another written agreement.