Liability of Servicer and the Subservicers Sample Clauses

The "Liability of Servicer and the Subservicers" clause defines the responsibilities and potential legal exposure of the main servicer and any subservicers involved in managing a contract or asset. It typically outlines the circumstances under which the servicer or subservicers may be held liable for losses, errors, or breaches of duty, and may specify any limitations or exceptions to this liability. For example, the clause might state that the servicer is only liable for losses resulting from negligence or willful misconduct, while routine errors made in good faith may be exempt. The core function of this clause is to allocate risk between the parties by clarifying when and how the servicer and subservicers are accountable for their actions, thereby reducing uncertainty and potential disputes.