Released Loan Party Sample Clauses
The 'Released Loan Party' clause defines the circumstances under which a borrower or guarantor is released from its obligations under a loan agreement. Typically, this clause applies when a subsidiary or affiliate of the borrower is sold, merged, or otherwise ceases to be part of the borrowing group, at which point it is no longer liable for the loan. For example, if a subsidiary that was a guarantor is divested, it would be released from its guarantee obligations. The core function of this clause is to ensure that parties who are no longer associated with the borrower are not unfairly held responsible for the loan, thereby aligning liability with current ownership and control.
Released Loan Party. Notwithstanding anything herein to the contrary, a Loan Party (the “Released Loan Party”) shall be automatically released from its obligations under this Agreement in the event that all or any portion of the Equity Interests of the Released Loan Party shall be sold, transferred or otherwise disposed pursuant to clauses (i) and (j) of the definition of “Permitted Disposition,” and the parties hereby acknowledge and agree that each reference to a “Loan Party” or the “Loan Parties” in this Agreement shall not include such Released Loan Party.
Released Loan Party. Notwithstanding anything herein to the contrary, a Loan Party (the “Released Loan Party”) shall be automatically released from its obligations under this Agreement in the event that all or any portion of the Equity Interests of the Released Loan Party shall be sold, transferred or otherwise disposed as permitted by Section 7.02(c), and the parties hereby acknowledge and agree that each reference to a “Loan Party” or the “Loan Parties” in this Agreement shall not include such Released Loan Party. Notwithstanding the foregoing, the proceeds of any such sale, transfer or disposition shall continue to be subject to the Collateral Agent’s Lien pursuant to the Loan Documents.
Released Loan Party. Notwithstanding anything herein to the contrary, a Loan Party (the “Released Loan Party”) shall be automatically released from its