Effect of Lender Assignment Sample Clauses
The Effect of Lender Assignment clause defines what happens when a lender transfers its rights and obligations under a loan agreement to another party. Typically, this clause outlines how the assignment affects the borrower's obligations, such as to whom payments should be made and how notices are to be delivered, and may specify whether the borrower's consent is required for such an assignment. Its core practical function is to ensure continuity and clarity in the loan relationship by specifying the consequences and procedures when a lender assigns its interest, thereby preventing confusion or disputes over payment and communication responsibilities.
Effect of Lender Assignment. From and after the effective date of any assignment pursuant to Section 2.20(a), (i) the assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such assignment, it shall have the rights and obligations of a Lender hereunder and (ii) the Lender assignor thereunder shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such assignment, relinquish its rights (other than its rights under Section 2.13, 2.14, 2.19 or 8.3 to the extent any claim thereunder relates to an event arising prior to such assignment) and be released from its obligations under this Agreement (and, in the case of an assignment covering all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto).