Status of Successors to Closed-End Administrative Agent Clause Samples
The "Status of Successors to Closed-End Administrative Agent" clause defines the rights and responsibilities of any party that takes over the role of administrative agent after the original agent's term ends in a closed-end financial arrangement. Typically, this clause outlines the process for appointing a successor, clarifies whether the successor inherits all powers and duties of the original agent, and may specify any limitations or conditions on the successor's authority. Its core function is to ensure a smooth transition of administrative duties, maintaining continuity and minimizing disruption in the management of the agreement.
Status of Successors to Closed-End Administrative Agent. Every successor to the Closed-End Administrative Agent that is appointed pursuant to Section 5.7 shall be a bank or trust company in good standing and having power so to act and incorporated under the laws of the United States or any state thereof or the District of Columbia, and shall also have capital, surplus and undivided profits of not less than $500,000,000, if there be such an institution with such capital, surplus and undivided profits willing, qualified and able to accept the trust upon reasonable or customary terms.