Loan Agreement: Administrative Agent's Clawback Provisions | Practical Law

Loan Agreement: Administrative Agent's Clawback Provisions | Practical Law

A Standard Clause for syndicated loan agreements that allows the administrative agent to recoup funds that it advances either to the borrower on behalf of the lenders, or to the lenders on behalf of the borrower. In making these advances, administrative agents rely on provisions in loan agreements that payments to the borrower have been properly funded by the lenders, and that payments to the lenders have been properly funded by the borrower. If these assumptions are not true, the clawback provision permits the administrative agent to obtain a return of its funds.

Loan Agreement: Administrative Agent's Clawback Provisions

Practical Law Standard Clauses w-002-5666 (Approx. 6 pages)

Loan Agreement: Administrative Agent's Clawback Provisions

by Practical Law Finance
MaintainedUSA (National/Federal)
A Standard Clause for syndicated loan agreements that allows the administrative agent to recoup funds that it advances either to the borrower on behalf of the lenders, or to the lenders on behalf of the borrower. In making these advances, administrative agents rely on provisions in loan agreements that payments to the borrower have been properly funded by the lenders, and that payments to the lenders have been properly funded by the borrower. If these assumptions are not true, the clawback provision permits the administrative agent to obtain a return of its funds.