Common use of COLLATERAL RECOVERY Clause in Contracts

COLLATERAL RECOVERY. If Seller seeks to recover payment from a collateral source, pursuant to Division 4, Part 6 (Work of Improvement) of the California Civil Code (for example, against the owner of real property on a Mechanic's Lien claim), Seller shall only be required to credit against Xxxxx’s account the net amount recovered after deducting costs and actual attorneys’ fees incurred. Furthermore, in the event that Seller is unsuccessful in its attempt to recover from a collateral source, Seller’s reasonable costs and reasonable attorneys’ fees incurred in the unsuccessful attempt shall be added to Xxxxx's account. For purposes of proceeding against a collateral source, all unpaid invoices for that Work of Improvement shall be deemed immediately due and payable.