Relationship among Creditors Clause Samples
The 'Relationship among Creditors' clause defines how multiple creditors interact with each other in relation to a debtor's obligations. It typically outlines the rights, priorities, and responsibilities of each creditor, such as how payments received from the debtor are distributed or how enforcement actions are coordinated. For example, it may specify that one creditor has priority over another in receiving payments or that creditors must notify each other before taking legal action. This clause is essential for preventing disputes among creditors, ensuring orderly repayment, and clarifying the hierarchy of claims in complex financing arrangements.
Relationship among Creditors. The relationship among the Creditors is, and at all times shall remain solely that of Creditors. Creditors shall not under any circumstances be construed to be partners or joint venturers of one another; nor shall the Creditors under any circumstances be deemed to be in a relationship of confidence or trust or a fiduciary relationship with one another, or to owe any fiduciary duty to one another. Creditors do not undertake or assume any responsibility or duty to one another to select, review, inspect, supervise, pass judgment upon or otherwise inform each other of any matter in connection with any Obligor’s property, any Collateral held by any Creditor or the operations of any Obligor. Each Creditor shall rely entirely on its own judgment with respect to such matters, and any review, inspection, supervision, exercise of judgment or supply of information undertaken or assumed by any Creditor in connection with such matters is solely for the protection of such Creditor.
Relationship among Creditors. The relationship among the Creditors is, and at all times shall remain solely that of creditors of Obligors. Creditors shall not under any circumstances be construed to be partners or joint venturers of one another; nor shall the Creditors under any circumstances be deemed to be in a relationship of confidence or trust or a fiduciary relationship with one another, or to owe any fiduciary duty to one another. Creditors do not undertake or assume any responsibility or duty to one another to select, review, inspect, supervise, pass judgment upon or otherwise inform each other of any matter in connection with any Obligor’s property, any Collateral held by any Creditor or the operations of any Obligor. Each Creditor shall rely entirely on its own judgment with respect to such matters, and any review, inspection, supervision, exercise of judgment or supply of information undertaken or assumed by any Creditor in connection with such matters is solely for the protection of such Creditor. 137168310 v21
Relationship among Creditors. Nothing contained in this Agreement or otherwise will in any event be deemed to constitute any holder of Senior Debt the agent of the Subordinated Lender for any purpose nor to create any fiduciary relationship between any such holder of Senior Debt and the Subordinated Lender. No action or inaction with respect to any collateral for Senior Debt; nor any amendment to the Credit Agreement or any other Senior Credit Document; nor any exercise or non-exercise of any right, power or remedy under or in respect of any of the Senior Debt or any instrument or agreement relating to, securing or guaranteeing any of the Senior Debt; nor any waiver, consent, release, indulgence, extension, renewal, modification, delay or other action, inaction or omission in respect of any of the Senior Debt or any instrument or agreement relating to, securing or guaranteeing any of the Senior Debt will in any event give rise to any claim against the Agent or any holder of Senior Debt or any officers, director, employee or agent of such holder.
Relationship among Creditors