BORROWER'S DISCHARGE Clause Samples
The Borrower's Discharge clause outlines the conditions under which the borrower is released from their obligations under a loan or credit agreement. Typically, this clause specifies that once the borrower has fully repaid the loan and met all other contractual requirements, they are formally discharged from further liability. For example, after the final payment is made and any outstanding fees are settled, the lender will confirm the discharge in writing. The core function of this clause is to provide clarity and assurance to the borrower that their responsibilities end once all terms are fulfilled, thereby preventing future disputes over lingering obligations.
BORROWER'S DISCHARGE. If for any reason any of the Liabilities of the Borrower have been discharged or have become irrecoverable from the Borrower by operation of law or for any other reason, the Guaranteed Obligations of the Guarantor under this Guaranty shall nevertheless remain in full force and effect notwithstanding such discharge or irrecoverability.