Limitation on Claims Against Conduit Lenders Clause Samples
The Limitation on Claims Against Conduit Lenders clause restricts the ability of parties to bring legal claims or seek remedies directly against conduit lenders involved in a transaction. Typically, this clause applies in structured finance or securitization deals where a conduit lender acts as an intermediary, passing funds between investors and borrowers without retaining significant assets or liabilities. By limiting claims, the clause protects conduit lenders from direct liability, ensuring that any disputes or enforcement actions are directed toward the primary obligors or other responsible parties. This helps to allocate risk appropriately and encourages the participation of conduit lenders by reducing their exposure to litigation.
Limitation on Claims Against Conduit Lenders. Notwithstanding anything to the contrary set forth herein or in any other Transaction Document, no Conduit Lender shall have any obligation to pay any amount required to be paid by it under this Agreement or any other Transaction Document in excess of any amount available to such Conduit Lender after paying or making provision for the payment of its commercial paper notes. Each party hereto hereby agrees that it will not have a “claim” under Section 101(5) of the Bankruptcy Code if and to the extent that any such payment obligation owed to it by a Conduit Lender exceeds the amount available to such Conduit Lender to pay such amount after paying or making provision for the payment of its commercial paper notes.