Realization on Underlying Collateral Securing Receivables Sample Clauses
The 'Realization on Underlying Collateral Securing Receivables' clause defines the process and rights related to enforcing or liquidating collateral that backs certain receivables. In practice, this clause outlines how and when a party may take possession of, sell, or otherwise realize value from assets pledged as security if the receivables are not paid as agreed. For example, if a borrower defaults on payments, the secured party may seize and sell the collateral to recover the outstanding amounts. The core function of this clause is to provide a clear mechanism for recouping losses and managing risk in the event of non-payment, thereby protecting the interests of the secured party.
Realization on Underlying Collateral Securing Receivables. The Servicer warrants, represents and covenants that in the event that the Servicer or any Subservicer realizes upon any underlying collateral securing a Receivable, the methods utilized to realize upon such Receivable or otherwise enforce any provisions of the related Contract, will not subject the Servicer, the Borrower or any Secured Party to liability under any federal, State or local law, and that such enforcement by the Servicer or a Subservicer will be conducted in accordance with the provisions of this Agreement, the Collection Policy and Applicable Law.