Liability of the Depositor, the Servicer and the Master Servicer Clause Samples

This clause defines the responsibilities and potential legal exposure of the Depositor, the Servicer, and the Master Servicer in relation to their roles under the agreement. It typically outlines the circumstances under which each party may be held liable for losses, errors, or breaches of duty, and may specify any limitations or exclusions to that liability. For example, the clause might clarify whether liability is limited to cases of gross negligence or willful misconduct, or if certain damages are excluded. Its core function is to allocate risk among the parties and provide clarity on who bears responsibility for specific actions or failures, thereby reducing uncertainty and potential disputes.