The Collateral Agent and the Collateral Administrator Clause Samples
This clause defines the roles and responsibilities of the Collateral Agent and the Collateral Administrator in a financial transaction or security arrangement. It typically outlines how these parties are appointed, their authority to manage, hold, or enforce security interests in collateral, and the procedures they must follow in carrying out their duties. For example, the Collateral Agent may be responsible for holding pledged assets on behalf of lenders, while the Collateral Administrator may handle administrative tasks such as recordkeeping or reporting. The core function of this clause is to ensure clear allocation of duties and authority regarding the management and enforcement of collateral, thereby reducing confusion and mitigating risk among the parties involved.
The Collateral Agent and the Collateral Administrator. (a) Neither the Collateral Agent nor the Collateral Administrator shall have any liability for losses arising from (i) any cause beyond its control, (ii) any delay, error, omission or default of any mail, telegraph, cable or wireless agency or operator, or (iii) the acts or edicts of any government or governmental agency or other group or entity exercising governmental powers.
(b) It is expressly acknowledged and agreed that neither the Collateral Agent nor the Collateral Administrator is guaranteeing the performance of or assuming any liability for the obligations of the other parties hereto or any portion of the Collateral.
(c) Neither the Collateral Agent nor the Collateral Administrator shall be responsible for the preparation or filing of any UCC financing statements or continuation statements or the correctness of any financing statements filed in connection with this Agreement or the validity or perfection of any lien or security interest created pursuant to this Agreement.
(d) The Collateral Agent shall not be liable for interest on any money received by it except as the Collateral Agent may agree in writing with the Borrower. In no event shall the Collateral Agent be liable for the selection of any investments or any losses in connection therewith (except in its capacity as obligor thereunder, if applicable), or for any failure of the relevant party to provide investment instruction to the Collateral Agent in connection with the investment of funds in or from any account set forth herein.
(e) Neither the Collateral Agent nor the Collateral Administrator shall have any liability for any failure, inability or unwillingness on the part of the Investment Advisor, the Borrower or the Administrative Agent to provide accurate and complete information on a timely basis to the Collateral Agent or the Collateral Administrator, or otherwise on the part of any such party to comply with the terms of this Agreement, and shall have no liability for any inaccuracy or error in the performance or observance on the Collateral Agent’s or the Collateral Administrator’s part of any of its duties hereunder that is caused by or results from any such inaccurate, incomplete or untimely information received by it, or other failure on the part of any such other party to comply with the terms hereof.
(f) Neither the Collateral Agent nor the Collateral Administrator shall be bound to make any investigation into the facts or matters stated in any certificate, report or other do...
The Collateral Agent and the Collateral Administrator. 137136 Section 11.1
The Collateral Agent and the Collateral Administrator