Mitigation Obligations Lender Replacement Termination of Defaulting Lender Sample Clauses

This clause outlines the responsibilities and procedures related to mitigating the effects of a lender's default, replacing a defaulting lender, and terminating their participation in a loan agreement. It typically requires non-defaulting parties to take reasonable steps to minimize losses or costs resulting from a lender's failure to meet its obligations, and provides a mechanism for the borrower or other lenders to replace or remove the defaulting lender from the lending group. By establishing clear steps for mitigation and replacement, this clause ensures the continued smooth operation of the loan facility and protects the interests of both borrowers and non-defaulting lenders.