Common use of Proportional Interest Clause in Contracts

Proportional Interest. Upon payment by the Participant Bank of the amounts due from the Participant Bank pursuant to Section 2.2, the Participant Bank shall thereupon, without the necessity of any written instrument of assignment or document, become vested with its Participation Interest. Upon such payment, the respective interests of the Participant Bank and the Lead Bank in the Loan Documents and the other rights and claims of the Lead Bank with respect to the Designated Loans shall be as provided in this Agreement. If the Lead Bank acquires, directly or indirectly, an ownership interest due to the purchase, foreclosure or other realization of any security interest in or lien granted by any of the Loan Documents, the Participant Bank shall have a Participation Interest in such ownership interest subject only to the allocation of Realized Losses as provided in Section 3.6.9. of this Agreement, notwithstanding that title is taken in the name of the Lead Bank (or its nominee or designee, including, without limitation, the applicable PFI) alone. The Participant Bank and the Lead Bank agree that the other party shall not be liable or responsible to the Participant Bank or Lead Bank, as the case may be, for any loss upon the enforcement of any Designated Loan or any loss or liability incurred by virtue of the Lead Bank (or its nominee or designee) acquiring, holding or disposing of any title to or interest in any security for any Designated Loan, as long as the Participant Bank or the Lead Bank, as the case may be, acts with respect to such Designated Loan in the same manner as it would act with respect to its own assets.

Proportional Interest. Upon payment by the Participant Bank MPF Provider of the amounts due from the Participant Bank MPF Provider pursuant to Section 2.2, the Participant Bank MPF Provider shall thereupon, without the necessity of any written instrument of assignment or document, become vested with its Participation Interest. Upon such payment, the respective interests of the Participant Bank MPF Provider and the Lead MPF Bank in the Loan Documents and the other rights and claims of the Lead MPF Bank with respect to the Designated Loans shall be as provided in this Agreement. If the Lead MPF Bank acquires, directly or indirectly, an ownership interest due to the purchase, foreclosure or other realization of any security interest in or lien granted by any of the Loan Documents, the Participant Bank MPF Provider shall have a Participation the MPF Provider’s Interest in such ownership interest subject only to the allocation of Realized Losses as provided in Section §3.6.9. of this Agreement, notwithstanding that title is taken in the name of the Lead MPF Bank (or its nominee or designee, including, without limitation, the applicable PFI) alone. The Participant Bank MPF Provider and the Lead MPF Bank agree that the other party shall not be liable or responsible to the Participant Bank MPF Provider or Lead MPF Bank, as the case may be, for any loss upon the enforcement of any Designated Loan or any loss or liability incurred by virtue of the Lead MPF Bank (or its nominee or designee) acquiring, holding or disposing of any title to or interest in any security for any Designated Loan, as long as the Participant Bank MPF Provider or the Lead MPF Bank, as the case may be, acts with respect to such Designated Loan in the same manner as it would act with respect to its own assets.