{"component": "clause", "props": {"groups": [{"samples": [{"hash": "fmhP8gmujcg", "uri": "/contracts/fmhP8gmujcg#automatic-release", "label": "Credit Agreement (Coty Inc.)", "score": 34.5304603577, "published": true}, {"hash": "9gYDFeyXBfD", "uri": "/contracts/9gYDFeyXBfD#automatic-release", "label": "Credit Agreement (Coty Inc.)", "score": 34.3497619629, "published": true}, {"hash": "6OlLErHqTN0", "uri": "/contracts/6OlLErHqTN0#automatic-release", "label": "Credit Agreement (Coty Inc.)", "score": 29.2710475922, "published": true}], "size": 27, "snippet_links": [{"key": "subject-of", "type": "clause", "offset": [25, 35]}, {"key": "loan-party", "type": "clause", "offset": [73, 83]}, {"key": "collateral-granted", "type": "clause", "offset": [141, 159]}, {"key": "the-loan-documents", "type": "clause", "offset": [166, 184]}, {"key": "disposed-of", "type": "definition", "offset": [242, 253]}, {"key": "free-and-clear", "type": "definition", "offset": [254, 268]}], "snippet": "If any Collateral is the subject of a Disposition (other than to another Loan Party) which is permitted under Section 6.05, the Liens in the Collateral granted under the Loan Documents shall automatically terminate and the Collateral will be disposed of free and clear of all such Liens.", "hash": "153e5cef3b1651babceaa8be2dc5da5e", "id": 1}, {"samples": [{"hash": "2XznW0nzvEo", "uri": "/contracts/2XznW0nzvEo#automatic-release", "label": "Credit Agreement (Service Corp International)", "score": 28.931552887, "published": true}, {"hash": "kCA4I3tgBfB", "uri": "/contracts/kCA4I3tgBfB#automatic-release", "label": "Credit Agreement (Service Corporation International)", "score": 27.1711158752, "published": true}, {"hash": "lh3Y9WthDn7", "uri": "/contracts/lh3Y9WthDn7#automatic-release", "label": "Credit Agreement (Service Corporation International)", "score": 24.5153999329, "published": true}], "size": 9, "snippet_links": [{"key": "the-credit-agreement", "type": "clause", "offset": [31, 51]}, {"key": "satisfaction-of-the-conditions", "type": "clause", "offset": [148, 178]}], "snippet": "As provided in Section 9.02 of the Credit Agreement, a Guarantor shall be automatically released from its obligations under this Guarantee upon the satisfaction of the conditions set forth therein.", "hash": "b7b74c71d9cf4603ddffc2ece3a8db28", "id": 2}, {"samples": [{"hash": "9zZk1LVqcsL", "uri": "/contracts/9zZk1LVqcsL#automatic-release", "label": "Credit Agreement (Krispy Kreme, Inc.)", "score": 36.6002731323, "published": true}, {"hash": "igmgWN3HMkv", "uri": "/contracts/igmgWN3HMkv#automatic-release", "label": "Incremental Assumption Agreement and Amendment No. 1 to Credit Agreement (Krispy Kreme, Inc.)", "score": 36.3483924866, "published": true}, {"hash": "gFZ5xFEzjxA", "uri": "/contracts/gFZ5xFEzjxA#automatic-release", "label": "Credit Agreement (Krispy Kreme, Inc.)", "score": 32.22108078, "published": true}], "size": 3, "snippet_links": [{"key": "liens-in-the-collateral", "type": "clause", "offset": [4, 27]}, {"key": "all-guarantees", "type": "definition", "offset": [32, 46]}, {"key": "any-loan", "type": "clause", "offset": [61, 69]}, {"key": "date-of-full-satisfaction", "type": "definition", "offset": [132, 157]}, {"key": "subject-of", "type": "clause", "offset": [188, 198]}, {"key": "loan-party", "type": "clause", "offset": [236, 246]}, {"key": "excluded-assets", "type": "definition", "offset": [332, 347]}, {"key": "pursuant-to-clauses", "type": "clause", "offset": [348, 367]}, {"key": "the-definition-of", "type": "definition", "offset": [426, 443]}, {"key": "excluded-equity-interests", "type": "clause", "offset": [445, 470]}, {"key": "the-liens", "type": "clause", "offset": [474, 483]}, {"key": "collateral-granted", "type": "clause", "offset": [492, 510]}, {"key": "the-loan-documents", "type": "clause", "offset": [517, 535]}, {"key": "in-the-case", "type": "clause", "offset": [595, 606]}, {"key": "disposed-of", "type": "definition", "offset": [630, 641]}, {"key": "free-and-clear", "type": "definition", "offset": [643, 657]}], "snippet": "All Liens in the Collateral and all Guarantees granted under any Loan Document shall automatically terminate and be released on the Date of Full Satisfaction. If any Collateral (i) is the subject of a Disposition (other than to another Loan Party) which is permitted under Section 6.05 or (ii) becomes an Excluded Asset (other than Excluded Assets pursuant to clauses (i) or (k) of the definition thereof and/or clause (b) of the definition of \u201cExcluded Equity Interests\u201d), the Liens in such Collateral granted under the Loan Documents shall automatically terminate and such Collateral will be (in the case of a Disposition, when disposed of) free and clear of all such Liens.", "hash": "73eb8843f4cc886e49b1c9335b489584", "id": 6}, {"samples": [{"hash": "6l0hlXo426w", "uri": "/contracts/6l0hlXo426w#automatic-release", "label": "Revolving Credit Agreement (Rackspace Hosting, Inc.)", "score": 23.332649231, "published": true}, {"hash": "5iHSlNxNudw", "uri": "/contracts/5iHSlNxNudw#automatic-release", "label": "Revolving Credit Agreement (Rackspace Hosting, Inc.)", "score": 22.74127388, "published": true}], "size": 2, "snippet_links": [{"key": "the-credit-agreement", "type": "clause", "offset": [31, 51]}, {"key": "satisfaction-of-the-conditions", "type": "clause", "offset": [148, 178]}, {"key": "new-lender-agreement", "type": "definition", "offset": [203, 223]}, {"key": "dated-as-of", "type": "definition", "offset": [244, 255]}, {"key": "jpmorgan-chase-bank", "type": "definition", "offset": [334, 353]}, {"key": "administrative-agent", "type": "clause", "offset": [380, 400]}, {"key": "capitalized-terms-used", "type": "definition", "offset": [499, 521]}, {"key": "the-meanings", "type": "definition", "offset": [553, 565]}], "snippet": "As provided in Section 9.02 of the Credit Agreement, a Guarantor shall be automatically released from its obligations under this Guarantee upon the satisfaction of the conditions set forth therein. This New Lender Agreement (this \u201cAgreement\u201d), dated as of [________________], 201__, is among Rackspace Hosting, Inc. (the \u201cBorrower\u201d), JPMorgan Chase Bank, N.A., in its capacity as Administrative Agent (the \u201cAgent\u201d) under the Credit Agreement described below, and [_____________] (the \u201cNew Lender\u201d). 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Parties complying with their respective obligations under Clause 11(3) (Final release) and the effective transfer of all Charged Assets in accordance with such instructions; or\n(b) the Single Pledgor Pledged Account Agreement having been terminated in accordance with its terms and the transfer of the Charged Assets in accordance with its terms.", "hash": "21f557867e48bc49f56df827b08b3733", "id": 4}, {"samples": [{"hash": "gHfsN5GvIyx", "uri": "/contracts/gHfsN5GvIyx#automatic-release", "label": "Credit Agreement (Safety-Kleen Holdco Inc)", "score": 21.0, "published": true}, {"hash": "lzGw757ndBI", "uri": "/contracts/lzGw757ndBI#automatic-release", "label": "Credit Agreement (Darling International Inc)", "score": 18.0, "published": true}], "size": 3, "snippet_links": [{"key": "loan-party", "type": "clause", "offset": [7, 17]}, {"key": "disposed-of", "type": "definition", "offset": [64, 75]}, {"key": "granted-to", "type": "definition", "offset": [124, 134]}, {"key": "the-administrative-agent", "type": "clause", "offset": [135, 159]}, {"key": "the-loan-documents", "type": "clause", "offset": [166, 184]}, {"key": "free-and-clear", "type": "definition", "offset": [254, 268]}], "snippet": "If any Loan Party sells any Collateral which is permitted to be disposed of under Section 6.05, the Liens in the Collateral granted to the Administrative Agent under the Loan Documents shall automatically terminate and the Collateral will be disposed of free and clear of all Liens of the Administrative Agent.", "hash": "93bef6399eabc2cd2a713c5d1497ddce", "id": 7}, {"samples": [{"hash": "gWXtdWS5r2k", "uri": "/contracts/gWXtdWS5r2k#automatic-release", "label": "Agreement (Astris Energi Inc)", "score": 21.0, "published": true}, {"hash": "9D9gBAYFv17", "uri": "/contracts/9D9gBAYFv17#automatic-release", "label": "Shareholder Agreement (Astris Energi Inc)", "score": 18.0, "published": true}], "size": 2, "snippet_links": [{"key": "escrowed-shares", "type": "clause", "offset": [7, 22]}, {"key": "remaining-balance", "type": "clause", "offset": [65, 82]}, {"key": "the-escrow-agent", "type": "clause", "offset": [121, 137]}, {"key": "section-41", "type": "clause", "offset": [150, 161]}, {"key": "termination-date", "type": "clause", "offset": [182, 198]}, {"key": "escrow-agent-shall", "type": "clause", "offset": [209, 227]}, {"key": "following-business-day", "type": "definition", "offset": [249, 271]}, {"key": "all-obligations", "type": "clause", "offset": [369, 384]}], "snippet": "If the Escrowed Shares, or any part thereof, (collectively, the \"Remaining Balance\"), has not been otherwise released by the Escrow Agent pursuant to Section 4.1 by 5:00 p.m. on the Termination Date, then the Escrow Agent shall at 12:00 noon on the following Business Day release and deliver the Remaining Balance to Macnor and thereby be forever released from any and all obligations or liabilities in respect thereof.", "hash": "10c307054e802e965b6db875a65d2ab1", "id": 9}, {"samples": [{"hash": "3Aci10Kqqba", "uri": "/contracts/3Aci10Kqqba#automatic-release", "label": "Equipment Purchase Agreement (MMC Energy, Inc.)", "score": 21.0, "published": true}, {"hash": "kCMML1s96dJ", "uri": "/contracts/kCMML1s96dJ#automatic-release", "label": "Contract for Sale of Equipment & Services (MMC Energy, Inc.)", "score": 19.0, "published": true}], "size": 2, "snippet_links": [{"key": "the-purchaser", "type": "clause", "offset": [3, 16]}, {"key": "to-provide", "type": "definition", "offset": [23, 33]}, {"key": "required-by", "type": "definition", "offset": [50, 61]}, {"key": "this-article", "type": "definition", "offset": [62, 74]}, {"key": "parties-are", "type": "clause", "offset": [120, 131]}, {"key": "substance-of", "type": "clause", "offset": [170, 182]}, {"key": "a-change-order", "type": "clause", "offset": [183, 197]}, {"key": "the-seller-is", "type": "clause", "offset": [207, 220]}, {"key": "pursuant-to", "type": "definition", "offset": [230, 241]}, {"key": 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["termination", "Termination"], ["expenses", "Expenses"], ["scheduled-release", "Scheduled Release"], ["pending-disputes", "Pending Disputes"]], "parents": [["permitted-release-of-collateral-and-subsidiary-loan-parties", "Permitted Release of Collateral and Subsidiary Loan Parties"], ["miscellaneous", "Miscellaneous"], ["permitted-release-of-collateral-and-guarantors", "Permitted Release of Collateral and Guarantors"], ["the-administrative-agent", "The Administrative Agent"], ["the-agents", "The Agents"]], "title": "Automatic Release", "id": "automatic-release", "related": [["automatic-renewal", "Automatic Renewal", "Automatic Renewal"], ["automatic-reduction", "Automatic Reduction", "Automatic Reduction"], ["automatic-early-termination", "Automatic Early Termination", "Automatic Early Termination"], ["specific-release-of-adea-claims", "Specific Release of ADEA Claims", "Specific Release of ADEA Claims"], ["automatic-renewal-limitation-for-tips-sales", "Automatic Renewal Limitation for TIPS Sales", "Automatic Renewal Limitation for TIPS Sales"]], "related_snippets": [], "updated": "2026-03-19T05:56:49+00:00", "also_ask": ["What triggers the automatic release, and can these triggers be manipulated or contested?", "Which parties benefit most from the automatic release, and how can this be balanced in negotiation?", "What essential conditions or notices must be included to ensure enforceability of the release?", "How does this automatic release compare to manual or conditional releases in similar agreements?", "What are the main risks if the automatic release is challenged in court, and how can they be mitigated?"], "drafting_tip": "Specify triggering events, set clear timelines, and define release procedures to ensure predictability and prevent disputes.", "explanation": "The Automatic Release clause establishes that certain obligations, restrictions, or encumbrances will be lifted automatically upon the occurrence of specified events or conditions. For example, this clause may stipulate that a security interest in collateral is released once a loan is fully repaid, or that contractual restrictions expire after a set period. Its core practical function is to provide certainty and efficiency by ensuring that releases happen without the need for additional actions or approvals, thereby reducing administrative burden and potential disputes."}, "json": true, "cursor": ""}}