Appropriate Proceedings. The Insured MUST begin Appropriate Proceedings when the Loan becomes six (6) months in Default unless the Company provides written instructions that some other action be taken. The Company reserves the right to direct the Insured to institute Appropriate Proceedings at any time after Default. When either defending against or bringing Appropriate Proceedings, the Insured shall report the status of these proceedings to the Company as reasonably and expeditiously as possible. In conducting Appropriate Proceedings, the Insured shall:
1. Diligently pursue the Appropriate Proceedings once they have begun;
2. Apply for the appointment of a receiver and assignment of rents, if permitted by law, requested by the Company, and appropriate for the Property;
3. At the request of the Company, furnish the Company with copies of all notices and pleadings filed or required in the Appropriate Proceedings;
4. Act so that its ability to preserve, transfer and assign to the Company its rights against the Borrower is not impaired; and so that the rights of the Company under this Policy against the Borrower are not adversely affected, including any rights to obtain a deficiency judgment, provided that the Insured shall not be required to pursue or establish a deficiency against the Borrower in those states where the Company is not permitted to pursue such a deficiency;
5. Bid an amount at the foreclosure sale which is not less than the minimum amount nor more than the maximum amount set forth below, unless the Company notifies the Insured of other instructions or waives its right to give bidding instructions, in writing.
a. If the FMV of a Property is less than the Uninsured Loan Balance, the Insured shall start bidding at not less than the FMV of the Property and may continue bidding up to a maximum of the Uninsured Loan Balance.
b. If the FMV of a Property is greater than the Uninsured Loan Balance, the Insured shall start bidding at not less than the Uninsured Loan Balance up to a maximum amount equal to the Claim Amount. If other bidding instructions are provided they will not specify a maximum bid that is less than the Uninsured Loan Balance, and, if the Property is subject to redemption for less than the outstanding amount of the Loan, then such other bidding instructions will not specify an opening bid of less than the Uninsured Loan Balance.
Appropriate Proceedings. The Insured must begin Appropriate Proceedings no later than when the Loan becomes six (6) months in Default unless the Company provides written instructions that some other action be taken. Such instructions may be general or applicable only to specific Loans. The Company reserves the right to direct the Insured to institute Appropriate Proceedings at any time after Default. When either defending against or bringing Appropriate Proceedings, the Insured must report their status to the Company as reasonably and expeditiously as possible. In conducting Appropriate Proceedings, the Insured must:
Appropriate Proceedings. If the charges in the notice are dismissed, the Bank may, in its discretion: (i) pay Executive all or part of the compensation withheld while their contract obligations were suspended; and (ii) reinstate (in whole or in part) any of the obligations which were suspended.
Appropriate Proceedings. 3 C. Approved Sale .......................................................... 4 D.
Appropriate Proceedings. Subject only to the provisions of Conditions Nine and Fifteen below:
Appropriate Proceedings. 11 B. Failure to Comply ...................................................... 12 Condition Seven - Loan Servicing .......................................... 12 Condition Eight - Approved Sale ........................................... 13 A. Settlement on Basis of Approved Sale .......................................................... 13 B. Settlement if Approved Sale Does Not Close .................................................... 13
Appropriate Proceedings the Insured must refer Covered Loans to an attorney for the commencement of Appropriate Proceedings in accordance with the Servicing Guide unless Applicable Law precludes such action. Once begun, Appropriate Proceedings must be diligently pursued, provided, however, that a foreclosure sale may be postponed in order to complete a workout transaction with the Borrower(s), if the Insured is then currently involved in a workout with the Borrower(s) that the Insured reasonably anticipates will reduce the likelihood of a Claim.
Appropriate Proceedings. Subject only to the provisions of Sections 9 and 12(E) below:
A. The Insured shall commence and diligently pursue Appropriate Proceedings, but in no event later than six (6) months after it is permitted to do so pursuant to the terms of the Loan and applicable law. If directed by the Company, the Insured shall commence Appropriate Proceedings as soon as it is permitted to do so pursuant to the terms of the Loan and applicable law.
B. The Insured shall notify the Company of all notices and pleadings filed or required in connection with Appropriate Proceedings, and furnish such notices and pleadings to the Company upon request.
C. Bidding Instructions.
1. The Company may give specific foreclosure sale bidding instructions to the Insured that do not require a minimum bid of less than fair market value and are in accordance with applicable law; provided, however, that the Company will not specify a maximum bid that would increase the Insured’s uninsured loss with respect to the applicable Property.
2. In the absence of specific bidding instructions, the Insured may control the bidding process in a manner that mitigates the Loss.
3. In the event of either (1) or (2), above, unless the Company elects in writing prior to the foreclosure sale to purchase the Property, any third-party purchase at foreclosure will be treated as an Approved Sale.
Appropriate Proceedings. 11 B. Failure to Comply ....................................................... 12 Condition Seven Loan Servicing ............................................. 12
Appropriate Proceedings. Subject only to the provisions of Conditions Nine and Fifteen below:
(a) The Insured shall commence and diligently pursue Appropriate Proceedings, but in no event later than six (6) months after it is permitted to do so pursuant to the terms of the Loan and applicable law. If directed by the Company, the Insured shall commence Appropriate Proceedings as soon as it is permitted to do so pursuant to the terms of the Loan and applicable law.
