Litigation Reserve. Without prejudice to its rights under Section 4.17(a), the Servicer, in its discretion, may establish a litigation reserve (the “Litigation Reserve”) from which to fund litigation costs and expenses (including attorneys’ fees) that constitute Servicing Advances with respect to the Mortgage Loans. If the Servicer elects to establish a Litigation Reserve it shall establish a Litigation Reserve Account at a Qualified Depository. The Litigation Reserve Account shall be held in trust for the benefit of the Owner and shall be established and maintained for the sole purpose of holding and distributing the Litigation Reserve funds. The Servicer may fund the Litigation Reserve with such portion of distributions on the Mortgage Loans (but such portion shall nonetheless be deemed to have been distributed to Owner) as it deems appropriate, in the exercise of its reasonable discretion, or otherwise request Owner to fund such Litigation Reserve, in which case Owner shall fund such Liquidity Reserve as so requested. At the termination of this Agreement, all remaining funds held in the Litigation Reserve shall be distributed to the Owner. Amounts on deposit in the Litigation Reserve Account shall be invested in Eligible Investments, shall not be used to pay costs or expenses other than litigation costs and expenses that constitute Servicing Advances, and shall be used to pay such litigation costs and expenses only in any month in which distributions on the Mortgage Loans received during that month are insufficient to provide sufficient cash to pay all Servicing Advances due and payable (without prepayment) during that month with respect to the Mortgage Loans. No funds from any other source (other than interest or earnings on the funds held in the Litigation Reserve Account) shall be commingled in the Litigation Reserve Account. Amounts on deposit in the Litigation Reserve Account (including interest and earnings thereon) shall be used and may be withdrawn and disbursed only in accordance with the provisions of this paragraph. The Servicer shall be authorized and directed to withdraw funds from the Litigation Reserve Account only to make disbursements in accordance with this Agreement and not for any other purpose.
Litigation Reserve. Company has advised Parent that it will record a reserve during the quarter ended September 30, 1999 in the approximate amount of $5,800,000 in connection with loss contingencies associated with certain disputes and/or litigation. The Company also agrees to use its best commercially reasonable efforts to settle the claims currently identified on its open litigation summary on or before December 10, 1999.
Litigation Reserve. Each of GE and GECS is familiar with the activities, assets, liabilities, employees, properties, businesses and operations, including any disposed of or ceased prior to the Closing, of KP & Co. and the Litigation set forth in the Litigation Letter and has carefully evaluated based on reasonably available information as of the date hereof (x) the Litigation set forth in the Litigation Letter and (y) any unasserted claims against KP & Co. of which GE or GECS has knowledge or reason to know. Based on such familiarity and evaluation, in the judgment of the management of GE and GECS, taking into account the number, variety and status of the actions, suits, investigations, arbitrations and other proceedings included in the Litigation set forth in the Litigation Letter and any such unasserted claims, many of which are at very preliminary stages, and recognizing the uncertainties of litigation generally, the $90,000,000 Pre-Tax Reserve is a reasonable estimate of the amount that is likely to be sufficient to resolve such Litigation and any such unasserted claims (including any related costs and expenses of the defense thereof).
Litigation Reserve. Maintain the cash reserve set aside with regard to the Bonfiglio judgment until such judgment is overturned or disxxxxxx xy a court of competent jurisdiction (and all appeals have ended).
Litigation Reserve. Pursuant to Section 7.12, Sellers are assuming all obligations with respect to the Pending Claims (as defined in Section 7.12). Sellers shall use their best efforts to obtain the dismissal with prejudice or settlement (at Sellers' cost and expense) of (a) the pending litigation captioned HINDMAN V. TDC AND ROY E. GREEXXXXX xending in thx Xxxxxxx Xxxxx of Cook County, Case No. 96 L 01300 ("Hindman Litigxxxxx"), xxx (b) xxx xxxims of Howard Hunter against the Compxxx (xxx "Xxxter Claim") within 270 days after the Closing Date. The Hunter Claim is referred to as the "Secured Claim". Sellers shall deliver executed settlement agreements or court-stamped dismissals with prejudice to Buyer promptly after the same are executed or entered. If Sellers have not delivered to Buyer a settlement agreement or court-stamped dismissal with prejudice for the Secured Claim within 270 days after the Closing Date, then $40,000 shall be retained in the General Escrow Deposit for the Secured Claim. At such time as the Secured Claim becomes resolved at Sellers' cost and expense and evidence thereof is provided to Buyer, the parties shall direct the Escrow Agent to pay to Buyer from the General Escrow Deposit an amount equal to the amount reserved for such Secured Claim pursuant to this Section 6.4. The obligation to release such reserve shall not apply to any Secured Claim which becomes a Third Party Claim pursuant to Section 7.12.
Litigation Reserve. The Borrower shall apply any remaining unused portion of the Litigation Reserve to the prepayment of the Term Loans on the date that all claims described in Schedules 4.7 and 4.12 have been settled or otherwise resolved.
Litigation Reserve. The parties shall have agreed upon the terms of an escrow to be established by the parties to hold $885,000 from the Merger Proceeds as a reserve against claims made in certain litigation and threatened litigation. The funds shall be escrowed in an account at Oak Hill Banks with an interest rate of 5 per cent per annum. The litigation and threatened litigation to be reserved against shall include only those claims by, and damage and expense awards in favor of, New Richmond National Bank, New Richmond, Ohio, arising from participation agreements executed prior to the Effective Date. Claims to be paid from the reserve shall include damage awards of every kind, such as, for example, actual and punitive damage awards, awards for the costs and legal expenses of a plaintiff and the costs and expenses of Ripley National or its successor in defending such litigation, includxxx xxl other related expenses of defending such litigation, such as, for example, expert witness fees. The escrow shall end on the date of the final adjudication of any such litigation, including the running of any periods for discretionary appeals.
