Common use of Recovery by Lender Subsequent to Claim Clause in Contracts

Recovery by Lender Subsequent to Claim. a) If after payment of a Claim by the VSBFA, the Lender recovers from a Borrower any amount for which payment of the Claim was made, the Lender shall promptly pay to the VSBFA for deposit in the Reserve Fund an amount recovered equal to the payment received from the VSBFA for the Claim, less the Lender’s customary and reasonable out-of-pocket expenses. The Lender shall retain documentation in its files evidencing those expenses. Notwithstanding anything to the contrary herein, Lender shall be required to make the foregoing payment solely to the extent that the amount recovered by Xxxxxx from the Borrower for an Enrolled Loan for which Xxxxxx made a Claim, when added to the payments received by Lender under such Claim, exceeds Lender’s loss on such Enrolled Loan.

Recovery by Lender Subsequent to Claim. a) If after payment of a Claim by the VSBFA, the Lender recovers from a Borrower any amount for which payment of the Claim was made, the Lender shall promptly pay to the VSBFA for deposit in the Reserve Fund an amount recovered equal to the payment received from the VSBFA for the Claim, less the Lender’s customary and reasonable out-of-pocket expenses. The Lender shall retain documentation in its files evidencing those expenses. Notwithstanding anything to the contrary herein, Lender shall be required to make the foregoing payment solely to the extent that the amount recovered by Xxxxxx Lender from the Borrower for an Enrolled Loan for which Xxxxxx Lender made a Claim, when added to the payments received by Lender under such Claim, exceeds Lender’s loss on such Enrolled Loan.