Common use of Adjustment of Loss Clause in Contracts

Adjustment of Loss. Mortgagor hereby authorizes Mortgagee, at Mortgagee's option, to adjust and compromise any losses under any insurance afforded at any time after the occurrence and during the continuation of any event of default hereunder or any event which with the lapse of time, the giving of notice, or both, would constitute an event of default hereunder (herein, a "default"), but unless Mortgagee elects to adjust the losses as aforesaid, said adjustment and/or compromise shall be made by Mortgagor, subject to final approval of Mortgagee (regardless of whether or not a default or event of default hereunder shall have occurred) in the case of losses exceeding $250,000.