Lender Indemnity Restrictions

Summary

Lenders typically restrict indemnity for gross negligence to prevent reckless behavior and avoid shifting risk. The terms any and such in indemnity clauses differ in scope, affecting who is covered. Indemnified persons may include more than just signers, depending on the agreements language.

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what is the difference between "any indemnified persons gross negligence" or "such indemnified persons gross negligence"?
The difference between "any indemnified person's gross negligence" and "such indemnified person's gross negligence" lies in specificity:
- "Any indemnified person's gross negligence" is broad and includes gross negligence by any person covered by the indemnity.
- "Such indemnified person's gross negligence" refers specifically to the person mentioned in the context.
Is there a particular contract or situation you are dealing with where this distinction is important?
what is an indemnity
An indemnity is a contractual obligation where one party agrees to compensate another for any potential losses or damages. Essentially, it’s a promise to cover the costs for harm or liability incurred.
Is there a specific contract or situation you're dealing with that involves indemnity?
would such indemnified persons' only be the signers to the loan agreement
In general, "indemnified persons" can include more than just the signers of the loan agreement. It often depends on the language of the agreement and how "indemnified persons" are defined within it.
Is there a specific loan agreement you are referring to?