Liability of the Holders Clause Samples
The 'Liability of the Holders' clause defines the extent to which individuals or entities holding interests, such as shares or units, in a company or fund are responsible for the obligations and debts of that entity. Typically, this clause clarifies whether holders have limited liability, meaning their financial risk is restricted to the amount they have invested, or if they could be held personally liable for additional amounts. For example, in most corporations, shareholders are not personally liable for company debts beyond their shareholdings. This clause is essential for providing certainty to investors about their potential exposure, thereby encouraging investment by limiting personal financial risk.
Liability of the Holders. No Certificateholder shall have any personal liability for any liability or obligation of the Trust. The Certificates shall be fully paid and nonassessable.
Liability of the Holders of the Excess Distribution --------------------------------------------------- Certificate. -----------
(a) Notwithstanding the provisions of Section 3803 of the Delaware Business Trust Act, the Depositor shall be liable directly to and shall indemnify the injured party for all losses, claims, damages, liabilities and expenses of the Trust (including Expenses, to the extent that the assets of the Trust that would remain if all of the Notes were paid in full would not be sufficient to pay any such liabilities, or if such liabilities in fact are not paid out of the Trust Estate) to the extent that the Depositor would be liable if the Trust were a partnership under the Delaware Revised Uniform Limited Partnership Act in which the Depositor were a general partner; provided, however, that the Depositor shall not be liable for -------- ------- any losses incurred by a beneficial owner of a Note in its capacity as a holder of limited recourse debt or to any holder of the Excess Distribution Certificate. In addition, any third party creditors of the Trust (other than in connection with the obligations to Noteholders excepted above) shall be third party beneficiaries of this paragraph.
(b) No holder of the Excess Distribution Certificate (in such capacity) shall have any personal liability for any liability or obligation of the Trust.
Liability of the Holders. Subject to Section 2.05, no Holder shall have any personal liability for any liability or obligation of the Trust. The Certificates shall be fully paid and, to the fullest extent permitted by law, non assessable.
Liability of the Holders. If any claim is ever made upon any Holder for repayment or recovery of any amount or amounts received in payment or on account of any of the Guaranteed Debt and any of the aforesaid payees repays all or part of said amount by reason of (a) any judgment, decree or order of any court or administrative body having jurisdiction over such payee or any of its property or (b) any settlement or compromise of any such claim effected by such payee with any such claimant (including the Company), then and in such event the Guarantor agrees that any such judgment, decree, order, settlement or compromise shall be binding upon it, notwithstanding any revocation hereof or the cancellation of any Note or other instrument evidencing any liability of the Company, and the Guarantor shall be and remain liable to the aforesaid payees hereunder for the amount so repaid or recovered to the same extent as if such amount had never originally been received by such payee.
Liability of the Holders. (a) The Depositor, as holder of the ACAC Certificate, shall be liable directly to and will indemnify the injured party for all losses, claims, damages, liabilities and expenses of the Trust (including Expenses, to the extent not paid out of the Owner Trust Estate) to the extent that the Depositor would be liable if the Trust were a partnership under the Delaware Revised Uniform Limited Partnership Act in which the Depositor were a general partner; provided, however, that the Depositor shall not be liable for any losses incurred by a Holder in the capacity of an investor in the Certificates or a Bondholder in the capacity of an investor in the Bonds. In addition, any third party creditors of the Trust (other than in connection with the obligations described in the preceding sentence for which the Depositor shall not be liable) shall be deemed third party beneficiaries of this paragraph and paragraph (c) below. The obligations of the Depositor under this paragraph and paragraph (c) below shall be evidenced by the ACAC Certificate the Depositor is receiving pursuant to Section 3.10. The Certificates shall be fully paid and non-assessable.
(b) No Holder, other than to the extent set forth in paragraphs (a) and (c), shall have any personal liability for any liability or obligation of the Trust.
(c) The Depositor agrees to be liable directly to and will indemnify the injured party for all losses, claims, damages, liabilities and expenses (other than those incurred by an Holder in the capacity of an investor in the Certificates or a Bondholder in the capacity of an investor in the Bonds) arising out of or based on the arrangements pursuant to which the amounts distributed to the Certificateholders, as though such arrangements were partnerships under the Delaware Revised Uniform Limited Partnership Act in which the Depositor were a general partner.
Liability of the Holders. No Holder shall have any personal liability for any liability or obligation of the Trust.
Liability of the Holders. (a) Any third party creditors of the Trust (other than in connection with the obligations described in the preceding sentence for which the Depositor shall not be liable) shall be deemed third party beneficiaries of this Section 2.7(a). The obligations of the Depositor under this Section 2.7(a) shall be evidenced by the Depositor's Certificate issued in the name of the Depositor. The Certificates shall be fully paid and non-assessable.
(b) No Certificateholder shall have any personal liability for any liability or obligation of the Trust.
Liability of the Holders. 10 SECTION 2.8 TITLE TO TRUST PROPERTY....................................................................10 SECTION 2.9