Rights of Agent as Bank; no partnership Clause Samples
This clause clarifies that the agent, when acting on behalf of the bank, does so strictly in its capacity as an agent and not as a partner or co-venturer with the bank or other parties. In practice, this means the agent is authorized to perform certain actions or make decisions for the bank, but does not share in the bank’s profits, losses, or liabilities beyond its agency role. The core function of this clause is to prevent any implication of a partnership or joint venture, thereby limiting the agent’s liability and ensuring that the legal relationship remains strictly one of agency.
Rights of Agent as Bank; no partnership. With respect to its own Commitment and Contribution (if any) the Agent shall have the same rights and powers under the Security Documents as any other Bank and may exercise the same as though it were not performing the duties and functions delegated to it under this Agreement and the term “Banks” shall, unless the context clearly otherwise indicates, include the Agent in its individual capacity as a Bank. This Agreement shall not and shall not be construed so as to constitute a partnership between the parties or any of them.