Trustee Not Fiduciary Clause Samples
The "Trustee Not Fiduciary" clause clarifies that the trustee's role is limited to specific administrative or custodial duties and does not extend to broader fiduciary responsibilities typically associated with trusteeship. In practice, this means the trustee is not required to act in the best interests of beneficiaries beyond the explicit terms of the agreement, nor are they held to the higher standards of care and loyalty that fiduciaries owe. This clause is used to limit the trustee's liability and obligations, ensuring that their responsibilities are clearly defined and do not inadvertently expand beyond what is intended in the contract.
Trustee Not Fiduciary. The Trustee shall not be deemed to owe any fiduciary duty to the Senior Creditors and shall not be liable to any such Senior Creditor if the Trustee shall in good faith mistakenly pay over or distribute to the Securityholders or to the Issuer or to any other person cash, property or securities to which any holders of Senior Obligations shall be entitled by virtue of this Article or otherwise. With respect to the holders of Senior Obligations, the Trustee undertakes to perform or to observe only such of its covenants or obligations as are specifically set forth in this Article and no implied covenants or obligations with respect to holders of Senior Obligations shall be read into this Supplemental Indenture against the Trustee.
Trustee Not Fiduciary. The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness of the Issuer or Senior Indebtedness and Senior Subordinated Indebtedness of any Subordinated Guarantor and shall not be liable to any such holders if it shall in good faith mistakenly pay over or distribute to Holders or the Issuers or any Subordinated Guarantor or any other Person, money or assets to which any holders of such Senior Indebtedness or Senior Subordinated Indebtedness shall be entitled by virtue of this Article XI or otherwise.
Trustee Not Fiduciary. The Trustee, in its capacity as trustee under the Base Indenture, as supplemented by this Supplemental Indenture, shall not be deemed to owe any fiduciary duty to the holders of Company Senior Indebtedness or Guarantor Indebtedness, and shall not be liable to any such holders if it shall in good faith mistakenly pay over or distribute to Holders of Bonds or to the Company or the Guarantor or to any other Person cash, property or securities to which any holders of Company Senior Indebtedness or Guarantor Indebtedness shall be entitled by virtue of this Section 9 or otherwise. With respect to the holders of Company Senior Indebtedness, the Trustee undertakes to perform or observe only such of its covenants or obligations as are specifically set forth in this Section 9 and no implied covenants or obligations with respect to holders of Company Senior indebtedness shall be read into the Base Indenture, as supplemented by this Supplemental Indenture against the Trustee.