Relationship Characteristics Clause Samples

Relationship Characteristics. We now report the empirical results concerning the role of relationships. The impact of the bank-firm relationship is captured in two complementary ways. Our first indicator of relationship strength, Main Bank, measures the scope of the bank-firm relationship. The loan rate decreases with the scope of the relationship. The results show that a firm pays 41 basis points less when the scope of a relationship is sufficiently broad (Main Bank = 1).50 The second indicator is the Duration of the Relationship between the lending bank and the borrower. We take the log of (one plus) the Duration of the Relationship, as we expect the marginal impact on the loan rate to decrease with the duration of the financial relationship. Table 6 shows that the loan rate increases with the duration of the relationship. This result was also documented and discussed in Degryse and ▇▇▇ ▇▇▇▇▇▇▇▇ (2000). For example, an increase in duration from the median (7.5 years) to the median plus one standard deviation (13 years) increases the loan rate by 10 basis points.
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Relationship Characteristics. Relationship characteristics control for information and experience effects and are therefore central to our analysis. The first characteristic in this category, Main Bank, indicates whether this bank considers itself to be the main bank of that firm or not. The definition used by the bank to determine whether it is the main bank is “having a monthly ‘turnover’ on the current account of at least BEF 100,000 (U.S. Dollar 2,500),38 and buying at least two products from that bank”. More than half of all borrowers are classified as Main Bank customers. Main Bank captures the scope of the relationship (that is, whether this firm also buys other products from this bank and executes most of its payments via this bank). If these sources of information improve the accuracy of the bank’s information or reduce the monitoring costs, then the measure Main Bank should reduce the expected cost of such loans.39 But Main Bank also proxies for the exclusivity of the relationship and the resulting lack of information a borrower has about alternatives.40 In that case, a main bank customer will pay a higher loan rate. The second relationship variable is the Duration of the Relationship in years with that particular bank at the time the loan rate is decided upon. A relationship starts when a firm buys for the first time a product from that bank. The average duration of the relationship in the sample is about eight years. Duration proxies for the increased time for a firm to experience the banks’ products and to appreciate the added flexibility the bank has to maintain and fulfill implicit contracts. While the bank gains private information about a firm to tailor its products, the firm may also become locked-in. In that case, a long-term bank customer may end up paying a higher loan rate.
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Related to Relationship Characteristics

  • Relationship to Plan This Award is subject to all of the terms, conditions and provisions of the Plan and administrative interpretations thereunder, if any, which have been adopted by the Committee thereunder and are in effect on the date hereof. Except as defined or otherwise specifically provided herein, capitalized terms shall have the same meanings ascribed to them under the Plan.

  • Relationship to Other Agreements You agree that when you use Mobile Banking, you will remain subject to the terms and conditions of all your existing agreements with us or any service providers of yours; including service carrier or provider and that this Agreement does not amend or supersede any of those agreements. You understand that those agreements may provide for fees, limitations and restrictions which might impact your use of Mobile Banking (for example, your mobile service carrier or provider may impose data usage or text message charges for your use of or interaction with Mobile Banking, including while downloading the Software, receiving or sending Mobile Banking text messages, or other use of your Wireless device when using the Software or other products and services provided by Mobile Banking), and you agree to be solely responsible for all such fees, limitations and restrictions. You agree that only your mobile service carrier or provider is responsible for its products and services. Accordingly, you agree to resolve any problems with your carrier or provider directly with your carrier or provider without involving us. You also agree that if you have any problems with Mobile Banking, you will contact us directly.

  • Relationships Nothing contained in this Agreement shall be deemed to constitute either party a partner, joint venturer or employee of the other party for any purpose.

  • Customer Relationships The Executive understands and acknowledges that the Company has expended significant resources over many years to identify, develop, and maintain its clients. The Executive additionally acknowledges that the Company’s clients have had continuous and long-standing relationships with the Company and that, as a result of these close, long-term relationships, the Company possesses significant knowledge of and confidential information about its clients and their needs. Finally, the Executive acknowledges the Executive’s association and contact with these clients is derived solely from Executive’s employment with the Company. The Executive further acknowledges that the Company does business throughout the United States and that the Executive personally has significant contact with the Company’s clients and customers solely as a result of Executive’s relationship with the Company.

  • Sellers Engagement of Servicer to Perform Servicing Responsibilities Section 2.01. Contract for Servicing; Possession of Servicing Files. The Seller, by execution and delivery of this Agreement, does hereby contract with the Servicer as the owner of the servicing rights, subject to the terms of this Agreement, for the servicing of the Mortgage Loans. The Servicer shall maintain a Servicing File with respect to each Mortgage Loan in order to service such Mortgage Loans pursuant to this Agreement and each Servicing File delivered to the Servicer shall be held in trust by the Servicer for the benefit of the Trustee; provided, however, that the Servicer shall have no liability for any Servicing Files (or portions thereof) not delivered by the Seller. The Servicer’s possession of any portion of the Mortgage Loan documents shall be at the will of the Trustee for the sole purpose of facilitating servicing of the related Mortgage Loan pursuant to this Agreement, and such retention and possession by the Servicer shall be in a custodial capacity only. The ownership of each Mortgage Note, Mortgage, and the contents of the Servicing File shall be vested in the Trustee and the ownership of all records and documents with respect to the related Mortgage Loan prepared by or which come into the possession of the Servicer shall immediately vest in the Trustee and shall be retained and maintained, in trust, by the Servicer at the will of the Trustee in such custodial capacity only. The Servicing File retained by the Servicer pursuant to this Agreement shall be identified in accordance with the Servicer’s file tracking system to reflect the ownership of the related Mortgage Loan by the Trustee. The Servicer shall release from its custody the contents of any Servicing File retained by it only in accordance with this Agreement.