Servicer walk-out clauses left out of Covid-era ABS docs
New ABS contracts are being written to exclude pandemics from the scope of ‘force majeure’ clauses, inserted to allow servicers to step away from their commitments if events outside of their control – such as the outbreak of Covid-19 – stop them from servicing portfolios.
“There are a lot of clauses for servicers being able to deliver info on a regular basis,” said Salim Nathoo, partner at Allen & Overy. “There’s a lot of discussion around what the outs are.”The force majeure clause stipulates that the servicer doesn’t have to perform its ...
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