Template:Nutshell GMSLA Addendum 4

Addendum 4. Allocation of Agency Loans

Addendum 4.1 If, when it enters into an Agency Loan, the Agent has not allocated the Loan to a Principal, it must allocate it to one or more Principals before the Settlement Date. A Principal will be responsible for only that part of an Agency Loan allocated to it. The Agent must promptly tell the Borrower (by name or agreed unique identifier) to which Principal it has allocated each part of each Agency Loan.

Addendum 4.1 Once so allocated, from the effective date of an Agency Loan, a separate Loan will be deemed to exist between Borrower and each such Principal with respect to its relative portion of the Agency Loan.

Addendum 4.1 If the Agent breaches its obligations under paragraph Addendum 4.2 above when assessing the Borrower’s damages (but for no other purpose) it shall be assumed that, if the Loan concerned (to the extent not allocated) had been allocated in accordance with that paragraph, all the terms of the Loan would have been duly performed.