Common use of Notice of Litigation and Proceedings Clause in Contracts

Notice of Litigation and Proceedings. The Borrower shall give immediate notice to the Lender of: (a) any litigation or proceeding in which it is a party if an adverse decision therein would require it to pay more than Ten Thousand Dollars ($10,000.00) or deliver assets the value of which equals or exceeds such sum (whether or not the claim is considered to be covered by insurance); and (b) the institution of any other suit or proceeding which might materially and adversely affect the Collateral.