Reservation of Rights Clause
(Acquisition Loan Agreement)

Summary

This template is for a reservation of rights clause that may be used in an acquisition loan agreement. This clause provides that a lender maintains all of its rights and remedies irrespective of any action or inaction on the part of lender. This template includes practical guidance and drafting notes. This clause ensures that no action, including delays, omissions, or other changes in the loan administration before or after a borrower default, limit any of lender's rights and remedies. Lender's counsel should understand both its contractual remedies and other remedies at law prior to the exercise of or waiver of any remedy. All capitalized terms used in this clause should be revised as necessary to conform to the loan agreement. For a detailed discussion of acquisition loan agreements, see Acquisition Loan Agreements. For a template acquisition loan agreement, see Loan Agreement (Acquisition Financing). For additional acquisition financing resources, see Commercial Real Estate Acquisition Loan Resource Kit. For a discussion of lender remedies, see Commercial Real Estate Loan Defaults and Remedies.