Yank-a-Bank (Banking & Finance Glossary)

Summary

Clause in a Credit Agreement is typically found in the “Replacement of Lenders” section. This gives a Borrower the right to replace a single Lender in a Syndicate with a new Lender under certain circumstances. Examples of such circumstances include a Lender’s failure to fund a loan or providing a dissenting vote on an amendment where the majority of the Lenders have approved. The new Lender must be willing to purchase the outstanding loans and commitments of the yanked Lender.