Common use of Hedging Liability Clause in Contracts

Hedging Liability. By virtue of a Bank’s execution of this Agreement or an assignment agreement pursuant to Section 13.12 hereof, as the case may be, any Affiliate of such Bank with whom the Borrower or any Subsidiary has entered into an agreement creating Hedging Liability shall be deemed a Bank party hereto for purposes of any reference herein to the parties for whom the Agent is acting, it being understood and agreed that the rights and benefits of such Affiliate hereunder consist exclusively of such Affiliate’s right to share in payments and collections out of the Subsidiary Guaranties. In connection with any such distribution of such payments and collections, the Agent shall be entitled to assume no amounts are due to any Bank or its Affiliate with respect to Hedging Liability unless such Bank has notified the Agent in writing of the amount of any such liability owed to it or its Affiliate prior to such distribution.