Common use of OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY Clause in Contracts

OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this Guarantee, the Company shall have the following additional options: (a) To pay or tender payment of the Amount of Liability together with any costs, attorneys' fees, and expenses incurred by the Assured that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay. (b) To pay or otherwise settle with the Assured any claim assured against under this Guarantee. In addition, the Company will pay any costs, attorneys' fees, and expenses incurred by the Assured that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or (c) To pay or otherwise settle with other parties for the loss or damage provided for under this Guarantee, together with any costs, attorneys' fees, and expenses incurred by the Assured that were authorized by the Company up to the time of payment and that the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in 6 (a), (b) or (c) of this paragraph the Company's obligations to the Assured under this Guarantee for the claimed loss or damage, other than the payments required to be made, shall terminate, including any duty to continue any and all litigation initiated by the Company pursuant to Paragraph 4.

OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this Guaranteepolicy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the Amount of Liability Insurance under this policy together with any costs, attorneys' ’ fees, and expenses incurred by the Assured Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations of the Company to the Insured under this policy, other than to make the payment required in this subsection, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Otherwise Settle With Parties Other Than the Insured or With the Insured Claimant. (i) To pay or otherwise settle with other parties for or in the Assured name of an Insured Claimant any claim assured insured against under this Guaranteepolicy. In addition, the Company will pay any costs, attorneys' ’ fees, and expenses incurred by the Assured Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or (cii) To pay or otherwise settle with other parties for the Insured Claimant the loss or damage provided for under this Guaranteepolicy, together with any costs, attorneys' ’ fees, and expenses incurred by the Assured Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in 6 subsections (a), (bb)(i) or (c) of this paragraph ii), the Company's ’s obligations to the Assured Insured under this Guarantee policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any duty liability or obligation to defend, prosecute, or continue any and all litigation initiated by the Company pursuant to Paragraph 4litigation.

OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this Guaranteepolicy, the Company shall have the following additional options: (a) TO PAY OR TENDER PAYMENT OF THE AMOUNT OF INSURANCE. To pay or tender payment of the Amount amount of Liability insurance under this policy together with any costs, attorneys' fees, fees and expenses incurred by the Assured that insured claimant, which were authorized by the Company Company, up to the time of payment or tender of payment and that which the Company is obligated to pay. Upon the exercise the Company of this option, all liability and obligations to the insured under this policy, other than to make the payment required, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cancellation. (b) To pay or otherwise settle with the Assured any claim assured against under this Guarantee. In addition, the Company will pay any costs, attorneys' fees, and expenses incurred by the Assured that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; orTO PAY OR OTHERWISE SETTLE WITH PARTIES OTHER THAN THE INSURED OR WITH THE INSURED CLAIMANT. (ci) To to pay or otherwise settle with other parties for or in the loss name or damage provided for an insured claimant any claim insured against under this Guaranteepolicy, together with any costs, attorneys' fees, fees and expenses incurred by the Assured that insured claimant which were authorized by the Company up to the time of payment and that which the Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in 6 paragraphs (a), (bb)(i) or (c) of this paragraph ii), the Company's obligations to the Assured insured under this Guarantee policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any duty liability or obligation to defend, prosecute or continue any and all litigation initiated by the Company pursuant to Paragraph 4litigation.

OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this Guaranteepolicy, the Company shall have the following additional options: (a) TO PAY OR TENDER PAYMENT OF THE AMOUNT OF INSURANCE. To pay or tender payment of the Amount amount of Liability insurance under this policy together with any costs, attorneys' fees, fees and expenses incurred by the Assured that insured claimant, which were authorized by the Company Company, up to the time of payment or tender of payment and that which the Company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations to the insured under this policy, other than to make the payment required, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cancellation. (b) To pay or otherwise settle with the Assured any claim assured against under this Guarantee. In addition, the Company will pay any costs, attorneys' fees, and expenses incurred by the Assured that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; orTO PAY OR OTHERWISE SETTLE WITH PARTIES OTHER THAN THE INSURED OR WITH THE INSURED CLAIMANT. (ci) To to pay or otherwise settle with other parties for or in the loss name or damage provided for an insured claimant any claim insured against under this Guaranteepolicy, together with any costs, attorneys' fees, fees and expenses incurred by the Assured that insured claimant which were authorized by the Company up to the time of payment and that which the Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in 6 paragraphs (a), (bb)(i) or (c) of this paragraph ii), the Company's obligations to the Assured insured under this Guarantee policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any duty liability or obligation to defend, prosecute or continue any and all litigation initiated by the Company pursuant to Paragraph 4litigation.

OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this Guaranteepolicy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the Amount of Liability Insurance under this policy together with any costs, attorneys' fees, ’ fees and expenses incurred by the Assured Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations of the Company to the Insured under this policy, other than to make the payment required in this subsection, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. (i) To pay or otherwise settle with other parties for or in the Assured name of an Insured Claimant any claim assured insured against under this Guaranteepolicy. In addition, the Company will pay any costs, attorneys' fees, ’ fees and expenses incurred by the Assured that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or (c) To pay or otherwise settle with other parties for the loss or damage provided for under this Guarantee, together with any costs, attorneys' fees, and expenses incurred by the Assured Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in 6 (a), (b) or (c) of this paragraph the Company's obligations to the Assured under this Guarantee for the claimed loss or damage, other than the payments required to be made, shall terminate, including any duty to continue any and all litigation initiated by the Company pursuant to Paragraph 4.is

OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this Guaranteepolicy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase the Indebtedness. (i) to pay or tender payment of the Amount amount of Liability insurance under this policy together with any costs, attorneys' fees, ’ fees and expenses incurred by the Assured that insured claimant, which were authorized by the Company Company, up to the time of payment or tender of payment and that which the Company is obligated to pay.; or (bii) To pay or otherwise settle to purchase the indebtedness secured by the insured mortgage for the amount owing thereon together with the Assured any claim assured against under this Guarantee. In addition, the Company will pay any costs, attorneys' fees, ’ fees and expenses incurred by the Assured that insured claimant which were authorized by the Company up to the time of payment or tender of payment purchase and that which the Company is obligated to pay; or (c) To pay or otherwise settle with other parties for . If the loss or damage provided for under this GuaranteeCompany offers to purchase the indebtedness as herein provided, the owner of the indebtedness shall transfer, assign, and convey the indebtedness and the insured mortgage, together with any costscollateral security, attorneys' fees, and expenses incurred by the Assured that were authorized by to the Company up to the time of upon payment and that the Company is obligated to paytherefor. Upon the exercise by the Company of either of the options provided for in 6 (a), (bparagraphs a(i) or (c) of this paragraph the Company's ii), all liability and obligations to the Assured insured under this Guarantee for the claimed loss or damagepolicy, other than to make the payments payment required to be madein those paragraphs, shall terminate, including any duty liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorneys’ fees and all litigation initiated expenses incurred by the insured claimant which were authorized by the Company pursuant up to Paragraph 4.the time of payment and which the Company is obligated to pay; or

OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this Guarantee, the Company shall have the following additional options: (a) To pay Pay or tender payment Tender Payment of the Amount of Liability or to Purchase the Indebtedness. The Company shall have the option to pay or settle or compromise for or in the name of the Assured any claim which could result in loss to the Assured within the coverage of this Guarantee, or to pay the full amount of this Guarantee or, if this Guarantee is issued for the benefit of a holder of a mortgage or a lienholder, the Company shall have the option to purchase the indebtedness secured by said mortgage or said lien for the amount owing thereon, together with any costs, reasonable attorneys' fees, ’ fees and expenses incurred by the Assured that claimant which were authorized by the Company up to the time of purchase. Such purchase, payment or tender of payment and that of the full amount of the Guarantee shall terminate all liability of the Company is obligated hereunder. In the event after notice of claim has been given to paythe Company by the Assured the Company offers to purchase the indebtedness, ORT Form 3796 (CLTA Guarantee (Rev. 12/94) – Form 1025-7) the owner of such indebtedness shall transfer and assign said indebtedness, together with any collateral security, to the Company upon payment of the purchase price. Upon the exercise by the Company of the option provided for in Paragraph (a) the Company’s obligation to the Assured under this Guarantee for the claimed loss or damage, other than to make the payment required in that paragraph, shall terminate, including any obligation to continue the defense or prosecution of any litigation for which the Company has exercised its options under Paragraph 5, and the Guarantee shall be surrendered to the Company for cancellation. (b) To pay Pay or otherwise settle with Otherwise Settle With Parties Other Than the Assured any claim assured against under this Guarantee. In addition, the Company will pay any costs, attorneys' fees, and expenses incurred by or With the Assured that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or (c) Claimant. To pay or otherwise settle with other parties for or in the loss or damage provided for name of an Assured claimant any claim assured against under this Guarantee, together with any costs, attorneys' fees, ’ fees and expenses incurred by the Assured that claimant which were authorized by the Company up to the time of payment and that which the Company is obligated to pay. Upon the exercise by the Company of either of the options option provided for in 6 (a), Paragraph (b) or (c) of this paragraph the Company's ’s obligations to the Assured under this Guarantee for the claimed loss or damage, other than to make the payments payment required to be madein that paragraph, shall terminate, including any duty obligation to continue the defense or prosecution of any and all litigation initiated by for which the Company pursuant to has exercised its options under Paragraph 45.

OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this Guaranteepolicy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the Amount of Liability Insurance under this policy together with any costs, attorneys' ’ fees, and expenses incurred by the Assured Insured Claimant that were authorized by the Company up to the time of payment or tender lender of payment and that the Company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations of the Company to the Insured under this policy, other than to make the payment required in this subsection, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Otherwise Settle With Parties Other Than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the Assured name of an Insured Claimant any claim assured insured against under this Guaranteepolicy. In addition, the Company will pay any costs, attorneys' ’ fees, and expenses incurred by the Assured Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or (cii) To to pay or otherwise settle with other parties for the Insured Claimant the loss or damage provided for under this Guaranteepolicy, together with any costs, attorneys' ’ fees, and expenses incurred by the Assured Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in 6 subsections (a), (bb)(i) or (c) of this paragraph ii), the Company's ’s obligations to the Assured Insured under this Guarantee policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any duty liability or obligation to defend, prosecute, or continue any and all litigation initiated by the Company pursuant to Paragraph 4litigation.

OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this Guaranteepolicy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the Amount of Liability Insurance under this policy together with any costs, attorneys' fees, fees and expenses incurred by the Assured Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations of the Company to the Insured under this policy, other than to make the payment required in this subsection, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Otherwise Settle with Parties Other than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the Assured name of an Insured Claimant any claim assured insured against under this Guaranteepolicy. In addition, the Company will pay any costs, attorneys' fees, fees and expenses incurred by the Assured Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or (cii) To to pay or otherwise settle with other parties for the Insured Claimant the loss or damage provided for under this Guaranteepolicy, together with any costs, attorneys' fees, fees and expenses incurred by the Assured Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in 6 subsections (a), (bb)(i) or (c) of this paragraph ii), the Company's obligations to the Assured Insured under this Guarantee policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any duty liability or obligation to defend, prosecute or continue any and all litigation initiated by the Company pursuant to Paragraph 4litigation.

OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this Guaranteepolicy, the Company The Fund shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the Amount amount of Liability insurance under this policy together with any costs, attorneys' fees, fees and expenses incurred by the Assured that insured claimant, which were authorized by the Company The Fund, up to the time of payment or tender of payment and that the Company is obligated to pay. (b) To pay or otherwise settle with the Assured any claim assured against under this Guarantee. In addition, the Company will pay any costs, attorneys' fees, and expenses incurred by the Assured that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or (c) To pay or otherwise settle with other parties for the loss or damage provided for under this Guarantee, together with any costs, attorneys' fees, and expenses incurred by the Assured that were authorized by the Company up to the time of payment and that the Company which The Fund is obligated to pay. Upon the exercise by The Fund of this option, all liability and obligations to the Company insured under this policy, other than to make the payment required, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to The Fund for cancellation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorney's fees and expenses incurred by the insured claimant which were authorized by The Fund up to the time of payment and which The Fund is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by The Fund up to the time of payment and which The Fund is obligated to pay. Upon the exercise by The Fund of either of the options provided for in 6 paragraphs (a), (bb)(i) or (c) of this paragraph the Companyii), The Fund's obligations to the Assured insured under this Guarantee policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any duty liability or obligation to defend, prosecute or continue any and all litigation initiated by the Company pursuant to Paragraph 4litigation.

OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this Guaranteepolicy, the Company shall have the following additional options:; (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase the Indebtedness. (i) To pay or tender payment of the Amount of Liability Insurance under this policy together with any costs, attorneys' ’ fees, and expenses incurred by the Assured that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay. (b) To pay or otherwise settle with the Assured any claim assured against under this Guarantee. In addition, the Company will pay any costs, attorneys' fees, and expenses incurred by the Assured Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or (cii) To purchase the Indebtedness for the amount of the Indebtedness on the date of purchase, together with any costs, attorneys’ fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of purchase and that the Company is obligated to pay. When the Company purchases the Indebtedness, the Insured shall transfer, assign, and convey to the Company the Indebtedness and the Insured Mortgage, together with any collateral security. Upon the exercise by the Company of either of the options provided for in subsections (a)(i) or (ii), all liability and obligations of the Company to the Insured under this policy, other than to make the payment required in those subsections, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Otherwise Settle With Parties Other Than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an Insured Claimant any claim insured against under this policy. In addition, the Company will pay any costs, attorneys’ fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay; or (ii) to pay or otherwise settle with the Insured Claimant the loss or damage provided for under this Guaranteepolicy, together with any costs, attorneys' ’ fees, and expenses incurred by the Assured Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in 6 subsections (a), (bb)(i) or (c) of this paragraph ii), the Company's ’s obligations to the Assured Insured under this Guarantee policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any duty liability or obligation to defend, prosecute, or continue any and all litigation initiated by the Company pursuant to Paragraph 4litigation.