Common use of Authority to Settle or Sell Loan Collateral Clause in Contracts

Authority to Settle or Sell Loan Collateral. The Borrower shall be authorized to finally compromise, settle, sell, liquidate, collect or write-down the balance of, any Asset in its discretion; provided, however, that in no event will any such compromise, settlement, sale, liquidation, collection or write-down reduce the remaining unpaid principal balance thereof, together with accrued and unpaid interest thereon, to an aggregate amount less than three hundred percent (300%) of the allocated purchase price paid by the Borrower to acquire such Asset, without first obtaining the prior consent of the Lender. The Borrower shall not, without first obtaining the Lender's prior written consent, agree to any sale, assignment or other bulk transfer of Accounts (whether in one or more Asset Pools). In the event the Lender consents to a bulk transfer of Accounts, the Servicer will be paid a sales fee not to exceed the lesser of (a) the actual out-of-pocket expenses incurred by the Servicer (and approved by the Lender) in connection with such bulk sale and (b) five percent (5%) of the net proceeds realized upon such bulk sale, in lieu of the applicable Servicing Fee, unless the Lender and the Borrower shall otherwise agree in writing.

Authority to Settle or Sell Loan Collateral. The Borrower shall be authorized to finally compromise, settle, sell, liquidate, collect or write-down the balance of, any Asset in its discretion; provided, however, that in no event will any such compromise, settlement, sale, liquidation, collection or write-down reduce the remaining unpaid principal balance thereof, together with accrued and unpaid interest thereon, to an aggregate amount less than three hundred percent (300%) of the allocated purchase price paid by the Borrower to acquire such Asset, without first obtaining the prior consent of the Lender. The Borrower shall not, without first obtaining the Lender's ’s prior written consent, agree to any sale, assignment or other bulk transfer of Accounts (whether in one or more Asset Pools). In the event the Lender consents to a bulk transfer of Accounts, the Servicer will be paid a sales fee not to exceed the lesser of (a) the actual out-of-pocket expenses incurred by the Servicer (and approved by the Lender) in connection with such bulk sale and (b) five percent (5%) of the net proceeds realized upon such bulk sale, in lieu of the applicable Servicing Fee, unless the Lender and the Borrower shall otherwise agree in writing.