Liability of the Master Servicer and the Depositor Clause Samples

The "Liability of the Master Servicer and the Depositor" clause defines the responsibilities and potential legal exposure of both the Master Servicer and the Depositor in a financial or securitization agreement. It typically outlines the circumstances under which each party may be held liable for losses, errors, or breaches of contract, and may specify limitations or exclusions to their liability. For example, the clause might state that the Master Servicer is only liable for losses resulting from its own negligence or willful misconduct, while the Depositor's liability could be limited to certain representations or warranties. The core function of this clause is to allocate risk between the parties and provide clarity on who bears responsibility for specific issues, thereby reducing uncertainty and potential disputes.