Covenants of the Administrative Agent and the Participants Sample Clauses
The "Covenants of the Administrative Agent and the Participants" clause sets out the ongoing promises and obligations that both the administrative agent and the participants in a financial transaction must uphold. Typically, this includes duties such as providing timely information, acting in good faith, and performing specific administrative or operational tasks related to the management of the loan or facility. For example, the administrative agent may be required to distribute payments received from the borrower to the participants, while participants may need to notify the agent of any relevant changes in their status. The core function of this clause is to ensure smooth coordination and clear expectations among the parties, thereby reducing misunderstandings and operational risks throughout the life of the agreement.
Covenants of the Administrative Agent and the Participants. (a) Lessor Liens. Each of the Participants (severally and not jointly with any other Participants), the Administrative Agent and Lessor hereby agrees that so long as this Participation Agreement is in effect it:
(i) will not create, incur, assume or suffer to exist any Lessor Lien attributable to it upon the Lease or the Leased Property (other than as contemplated by any of the Operative Documents); and
(ii) will remove any Lessor Lien created or incurred by it and use its best efforts to remove any Lessor Lien attributable to it assumed or suffered to exist by it upon the Lease or the Leased Property (other than the Liens of the Security Instruments and such other Liens as are contemplated by any of the Operative Documents); provided, however, that any action taken pursuant to this clause (ii) shall not limit Lessee’s rights or remedies under any of the Operative Documents.
Covenants of the Administrative Agent and the Participants