Common use of Future Recovery Clause in Contracts

Future Recovery. After a loan has been liquidated and a final loss has been paid by FmHA or its successor agency under Public Law 103–354, any future funds which may be recovered by the Lender, will be pro-rated between FmHA or its suc- cessor agency under Public Law 103–354 and the Lender. FmHA or its successor agency under Public Law 103–354 will be paid such amount recovered in proportion to the per- centage it guaranteed for the loan and the Lender will retain such amounts in propor- tion to the percentage of the unguaranteed portion of the loan.