Common use of Recovery of Avoided Payments Clause in Contracts

Recovery of Avoided Payments. If any payments or proceeds of collection applied by Lender to the Obligations should be challenged by a bankruptcy trustee, debtor-in-possession, creditor or other party as an avoidable transfer on the grounds that the payment constituted a preferential payment or a fraudulent conveyance under state law, federal law, or the Bankruptcy Code or any successor or similar statute thereto or on any other grounds, Lender may, as its option and in its sole discretion, elect whether to contest such challenge. If the Lender contests the avoidance action, all costs of the proceedings, including Lender’s reasonable attorney’s fees, will become part of the Obligations. If the contested amount, or any part thereof, is successfully avoided, the avoided amount will become part of the Obligations hereunder. If Lender elects not to contest the avoidance action, Lender may tender the amount subject to the avoidance action to the court, bankruptcy trustee, debtor-in-possession, creditor, or other party and the amount so tendered shall become part of the Obligations hereunder. The Guarantor’s obligation to reimburse Lender for amounts due under this paragraph shall survive the purported cancellation hereof.

Recovery of Avoided Payments. If any payments or proceeds of collection amount applied by Lender to the Guaranteed Obligations should be is subsequently challenged by a bankruptcy trustee, trustee or debtor-in-possession, creditor or other party possession as an avoidable transfer on the grounds that the payment constituted a preferential payment or a fraudulent conveyance under state law, federal law, law or the Bankruptcy Code or any successor or similar statute thereto or on any other grounds, Lender may, as at its option and in its sole discretion, elect whether to contest such challenge. If the Lender contests the avoidance action, all costs of the proceedingsproceeding, including Lender’s reasonable attorney’s 's attorneys fees, will become part of the Guaranteed Obligations. If the contested amount, or any part thereof, amount is successfully avoided, the avoided amount will become part of the Guaranteed Obligations hereunder. If Lender elects not to contest the avoidance action, Lender may tender the amount subject to the avoidance action to the bankruptcy court, bankruptcy trustee, trustee or debtor-in-possession, creditor, or other party possession and the amount so tendered advanced shall become part of the Guaranteed Obligations hereunder. The Guarantor’s 's obligation to reimburse Lender for amounts due under this paragraph shall survive the purported cancellation hereofhereof except as otherwise provided above.

Recovery of Avoided Payments. If any payments or proceeds of collection amount applied by Lender to the Guaranteed Obligations should be is subsequently challenged by a bankruptcy trustee, debtor-in-possession, creditor trustee or debtor‑in‑possession or other party Person as an avoidable transfer on the grounds that the payment constituted a preferential payment or a fraudulent conveyance under state law, federal law, law or the Bankruptcy Code or any successor or similar statute thereto or on any other grounds, Lender may, as may at its option and in its sole discretion, elect whether to contest such challenge. If the Lender contests the avoidance action, all costs of the proceedingsproceeding, including Lender’s reasonable attorney’s attorneys fees, will become part of the Guaranteed Obligations, and shall be due and payable by Guarantor on demand. If the contested amount, or any part thereof, amount is successfully avoided, the avoided amount will become part of the Guaranteed Obligations hereunderhereunder and shall be due and payable by Guarantor on demand. If Lender elects not to contest the avoidance action, Lender may tender the amount subject to the avoidance action to the bankruptcy court, bankruptcy trustee, debtor-in-possession, creditor, trustee or other party debtor in possession and the amount so tendered advanced shall become part of the Guaranteed Obligations hereunder, and shall be due and payable by Guarantor on demand. The Guarantor’s obligation to reimburse Lender for amounts due under this paragraph section shall survive the purported cancellation hereof.

Recovery of Avoided Payments. If any payments or proceeds of collection amount applied by Lender to the Obligations should be Indebtedness is subsequently challenged by a bankruptcy trustee, trustee or debtor-in-possession, creditor or other party in- possession as an avoidable transfer on the grounds that the payment constituted a preferential payment or a fraudulent conveyance under state law, federal law, law or the Bankruptcy Code or any successor or similar statute thereto or on any other grounds, Lender may, as at its option and in its sole discretion, elect whether and to what extent to contest such challenge. If the Lender contests the avoidance action, all costs of the proceedingsproceeding, including Lender’s reasonable attorney’s 's attorneys' fees, will become part of the ObligationsIndebtedness. If any of the contested amount, amounts are successfully avoided (whether through settlement or any part thereof, is successfully avoidedotherwise), the avoided amount will become reinstated as part of the Obligations Indebtedness hereunder. If Lender elects not to contest the avoidance action, Lender may tender the amount subject to the avoidance action to the bankruptcy court, bankruptcy trustee, trustee or debtor-in-possession, creditor, or other party possession and the amount so tendered advanced shall become part of the Obligations Indebtedness hereunder. The Guarantor’s 's obligation to reimburse Lender for amounts due under this paragraph Section shall survive the purported cancellation hereof.

Recovery of Avoided Payments. If any payments or proceeds of collection amount applied by the Lender Parties to the Obligations should be is subsequently challenged by a bankruptcy trustee, debtor-in-possession, creditor possession or other party person or entity as an avoidable transfer on the grounds that the payment constituted a preferential payment or a fraudulent conveyance under state law, federal law, law or the Bankruptcy Code or any successor or similar statute thereto or on any other grounds, the Lender Parties may, as its at their option and in its their sole discretion, elect whether to contest such challenge. If the Lender contests Parties contest the avoidance action, all costs of the proceedingsproceeding, including Lender’s reasonable attorney’s feesthe fees and expenses of the Lender Parties' attorneys, will become part of the Obligations. If the contested amount, or any part thereof, amount is nevertheless successfully avoided, the avoided amount will also become part of the Obligations hereunder. If the Lender elects Parties elect not to contest the avoidance action, the Lender Parties may tender the amount subject to the avoidance action to the bankruptcy court, bankruptcy trustee, trustee or debtor-in-possession, creditor, or other party possession and the amount so tendered advanced shall become part of the Obligations hereunder. The Each Guarantor’s 's obligation to reimburse the Lender Parties for amounts due under this paragraph shall survive the purported cancellation hereofhereof except as otherwise provided above.