Loan Documents; Impairment Sample Clauses
The 'Loan Documents; Impairment' clause defines the lender's rights and obligations regarding the loan documents and addresses situations where the value or enforceability of the loan may be affected. Typically, this clause clarifies that the lender is not responsible for any impairment or loss of collateral or security interests, even if such impairment results from the lender's actions or inactions, unless caused by gross negligence or willful misconduct. For example, if the lender releases a portion of the collateral or fails to perfect a security interest, the borrower's obligations under the loan documents generally remain unchanged. The core function of this clause is to protect the lender from claims that their handling of the loan documents or collateral has reduced the borrower's liability, thereby ensuring the lender's rights are preserved regardless of certain impairments.
Loan Documents; Impairment. At any time, for any reason, (i) any Loan Document shall for any reason (other than pursuant to the express terms hereof or thereof) fail or cease to create a valid and perfected Lien on any Collateral or the Liens intended to be created or perfected thereby are, or any Credit Party seeks to render such Liens, invalid or unperfected with respect to any Collateral except as otherwise contemplated hereby or thereby, or (ii) Liens with respect to any Collateral in favor of the Collateral Agent contemplated by the Loan Documents shall be invalidated or otherwise cease to be in full force and effect, or such Liens shall be subordinated or shall not have the priority contemplated hereby or by the other Loan Documents (subject to Permitted Encumbrances and to the exceptions set forth in the applicable Security Documents).
Loan Documents; Impairment. At any time, for any reason, (i) any Loan Document shall for any reason (other than pursuant to the express terms hereof or thereof) fail or cease to create a valid and perfected Lien or the Liens intended to be created or perfected thereby are, or any Credit Party seeks to render such Liens, invalid or unperfected except as otherwise contemplated hereby or thereby or (ii) Liens in favor of the Collateral Agent contemplated by the Loan Documents shall be invalidated or otherwise cease to be in full force and effect, or such Liens shall be subordinated or shall not have the perfected status or priority contemplated hereby or by the other Loan Documents (subject to Permitted Encumbrances); provided, however, it shall not be an Event of Default hereunder if the failure to have the perfected status contemplated hereby is solely a result of the gross negligence or willful misconduct of the Collateral Agent.
Loan Documents; Impairment. At any time, for any reason, (i) any Collateral Document shall for any reason (other than pursuant to the express terms hereof or thereof) fail or cease to create a valid and perfected Lien or the Liens intended to be created or perfected thereby are, or any Loan Party seeks to render such Liens, invalid or unperfected except as otherwise contemplated hereby or thereby, or (ii) Liens in favor of the Collateral Agent contemplated by the Collateral Documents shall be invalidated or otherwise cease to be in full force and effect, or such Liens shall be subordinated or shall not have the priority contemplated hereby or by the other Loan Documents (subject to Permitted Encumbrances); or
Loan Documents; Impairment. At any time, for any reason, any (i) Loan Document shall (other than pursuant to the express terms hereof or thereof) fail or cease to create a valid and perfected Lien on any Collateral other than as a result of any failure by the Administrative Agent or the Collateral Agent to take customary actions such as, by way of example, the filing of a UCC amendment to reflect a name change, or the Liens intended to be created or perfected thereby are, or a Borrower seeks to render such Liens, invalid or unperfected with respect to any Collateral except as otherwise contemplated hereby or thereby, or (ii) Liens with respect to any Collateral in favor of the Collateral Agent contemplated by the Loan Documents shall be invalidated or otherwise cease to be in full force and effect, or such Liens shall be subordinated or shall not have the priority contemplated hereby or by the other Loan Documents (subject to Permitted Encumbrances and to the exceptions set forth in any applicable Security Documents).
Loan Documents; Impairment. At any time, for any reason, (i) any Loan Document shall for any reason (other than pursuant to the express terms hereof or thereof) fail or cease to create a valid and perfected Lien on any Collateral or the Liens intended to be created or perfected thereby are, or any Credit Party seeks to render such Liens, invalid or unperfected with respect to any Collateral except as otherwise contemplated hereby or thereby, (ii) Liens with respect to any Collateral in favor of the Collateral Agent contemplated by the Loan Documents shall be invalidated or otherwise cease to be in full force and effect, or such Liens shall be subordinated or shall not be a valid and perfected first priority security interest (subject to Permitted Encumbrances and the exceptions set forth in the applicable Security Documents, if any) or (iii) any holder of any Lien enforces against, delivers any notices relating to its rights or its intention to enforce against, or becomes entitled to enforce against or otherwise takes possession, delivery or control of the Pledged Securities or the interest of the Borrower or any Guarantor in such Pledged Securities or any part of such Pledged Securities or interest.