Independent investigation of credit Clause Samples
The "Independent investigation of credit" clause requires parties to conduct their own assessment of the creditworthiness or financial standing of the other party before entering into an agreement. In practice, this means that each party is responsible for performing due diligence, such as reviewing financial statements, credit reports, or other relevant information, rather than relying solely on representations made by the other party or third parties. This clause serves to allocate risk by making it clear that each party assumes responsibility for its own investigation, thereby reducing the likelihood of disputes arising from undisclosed financial issues or misunderstandings about creditworthiness.
Independent investigation of credit. (a) (Trustee and Manager may assume independent investigation) The Trustee and the Manager shall be entitled to assume that each Noteholder has, independently and without reliance on the Trustee, the Manager, the Lead Manager or other Note Managers or any other Noteholder, and based on documents and information as each has deemed appropriate, made its own investigations in relation to the Notes, the Trustee, the Manager and the provisions of this Deed and any other Transaction Document and has not entered into any Transaction Document as a result of any inducement from the Trustee or the Manager.
(b) (Acknowledgement of independent investigation) Each Noteholder agrees that it will, independently and without reliance on the Trustee, the Manager, a Servicer or any other Noteholder and based on documents and information as it shall deem appropriate at the time, continue to make its own analysis and decisions as to all matters relating to this Deed and any other Transaction Document.
Independent investigation of credit. (a) (Trustee and Trust Manager may assume independent investigation) The Trustee and the Trust Manager shall be entitled to assume that each Noteholder has, independently and without reliance on the Trustee, the Trust Manager or any other Noteholder, and based on documents and information as each has deemed appropriate, made its own investigations in relation to the Notes, the Trustee, the Trust Manager and the provisions of this deed and any other Transaction Document.
(b) (Acknowledgement of independent investigation) Each Noteholder agrees that it will, independently and without reliance on the Trustee, the Trust Manager, a Servicer or any other Noteholder and based on documents and information as it shall deem appropriate at the time, continue to make its own analysis and decisions as to all matters relating to this deed and any other Transaction Document.
Independent investigation of credit. Each Participant confirms that it has made and will continue to make, independently and without reliance on the Agent or any other Participant:
(a) its own investigations into the affairs of the Relevant Companies; and
(b) its own analyses and decisions whether to take or not take action under any Transaction Document.
Independent investigation of credit. Each Participant and Hedging Counterparty is responsible for having made and continuing to make, independently and without reliance on the Agent, the Security Trustee or any other Participant:
(a) its own investigations into the affairs of the Relevant Companies; and
(b) its own analyses and decisions whether to enter the Transaction Documents or to take or not take action under them.
Independent investigation of credit. Each Lender confirms that it has made and will continue to make, independently and without reliance on the Agent or any other Lender:
(a) its own investigations into the affairs of the Relevant Companies; and
(b) its own analyses and decisions whether to take or not take action under any Transaction Document.