Reliance by Administrative Agent, L/C-BA Issuer and Lenders Sample Clauses
The 'Reliance by Administrative Agent, L/C-BA Issuer and Lenders' clause establishes that these parties are entitled to trust and act upon the information, certificates, and documents provided to them in connection with the loan agreement. In practice, this means that the administrative agent, letter of credit/bankers' acceptance issuer, and lenders do not have to independently verify every statement or document submitted by the borrower or other parties, and can proceed based on the representations made. This clause is essential for streamlining the administration of the loan, reducing the burden of due diligence on the lenders, and ensuring efficient processing of transactions by allocating the risk of misinformation to the party providing the information.
Reliance by Administrative Agent, L/C-BA Issuer and Lenders. The Administrative Agent, the L/C-BA Issuer and the Lenders shall be entitled to rely and act upon any notices (including telephonic Committed Loan Notices and Swing Line Loan Notices) purportedly given by or on behalf of the Borrowers even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The Borrowers shall indemnify the Administrative Agent, the L/C-BA Issuer, each Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of any Borrower. All telephonic notices to and other telephonic communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.