Common use of Right to Withhold Payment of Contested Claims Clause in Contracts

Right to Withhold Payment of Contested Claims. In the event that Assignee contests the validity of a Claim1 falling within any of the classifications set forth in Section 9 above, the Assignee may withhold the pro rata distribution (whether interim or final) to which the holder of such contested Claim would otherwise be entitled to receive until the allowance of the contested claim is determined by a Court of competent jurisdiction or by agreement with the Assignee.

Right to Withhold Payment of Contested Claims. In the event that Assignee contests the validity of a Claim1 falling within any of the classifications set forth in Section 9 above, the Assignee may withhold the pro rata distribution (whether interim or final) to which the holder of such contested Claim would otherwise be entitled to receive until the allowance of the contested claim is determined by a Court of competent jurisdiction or by agreement with the Assignee.