Effective Date of Resignation of the Administrative Agent Clause Samples
The 'Effective Date of Resignation of the Administrative Agent' clause defines when the resignation of the administrative agent in a financial agreement becomes officially recognized and effective. Typically, this clause outlines the process by which the agent must provide notice of resignation, any required advance notice period, and the conditions that must be met before the resignation takes effect, such as the appointment of a successor agent. Its core practical function is to ensure a smooth transition of responsibilities and prevent any gaps in agency services, thereby maintaining continuity and stability in the administration of the agreement.
Effective Date of Resignation of the Administrative Agent. No resignation or removal of the Administrative Agent shall be effective until both (i) 60 days have elapsed after notice to the Seller and the Buyers of the Administrative Agent’s election to resign or its removal, and (ii) a successor agent has been appointed pursuant to the provisions of this Section 22 and has accepted the appointment as provided in Section 22.15; provided that if such appointment has not been so made or if the Administrative Agent’s duties have not been assumed by the appointed successor on or before 90 days after the date of the Administrative Agent’s notice of resignation, the Administrative Agent may cease acting as agent and representative of the Buyers hereunder, and shall have no further responsibility therefor, at the close of business on the 10th Business Day after such 90-day period.