Common use of Settlement of Claim Clause in Contracts

Settlement of Claim. In case of loss covered by any of such policies, Lender is authorized to adjust, collect and compromise, in its discretion, all claims thereunder if an Event of Default has occurred and is continuing at the time, subject to the rights of the Senior Lender. In the event of any adjustment, collection and compromise by Lender, Borrower covenants to sign upon demand, or Lender may sign or endorse on Borrower’s behalf, all necessary proofs of loss, receipts, releases and other papers required by the insurance companies to be signed by Borrower. Borrower hereby irrevocably appoints Lender as its attorney-in-fact for the purposes set forth in the preceding sentence, subject to the rights of the Senior Lender. Subject to the rights of the Senior Lender, Lender may deduct from such insurance proceeds any reasonable expenses incurred by Lender in the collection and settlement thereof, including attorneys’ and adjustors’ fees and charges. Nothing contained in this Agreement shall create any responsibility or obligation of the Lender to collect any amounts owing on any insurance policy, to rebuild or replace the damaged or destroyed portions of the Project or to perform any other related act. The Lender shall not, by the fact of approving, disapproving, accepting, preventing, obtaining or failing to obtain any insurance, incur any liability for or with respect to the amount of insurance carried, the form or legal sufficiency of insurance contracts, solvency of insurance companies, or payment or defense of lawsuits, and the Borrower hereby expressly assumes full responsibility therefor and all liability, if any, with respect thereto.

Appears in 2 contracts

Samples: Senior Mezzanine Loan Agreement (Behringer Harvard Opportunity REIT I, Inc.), Senior Mezzanine Loan Agreement (Behringer Harvard Opportunity REIT I, Inc.)

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Settlement of Claim. In case of loss covered by any of such policies, Lender is authorized to adjust, collect and compromise, in its reasonable discretion, all claims thereunder if an Event of Default has occurred and is continuing at the timethereunder, subject to the rights of the Senior Lender. In the event of any such adjustment, collection and compromise by Lender, Borrower covenants Borrowers covenant to sign upon demand, or Lender may sign or endorse on Borrower’s Borrowers’ behalf, all necessary proofs of loss, receipts, releases and other papers required by the insurance companies to be signed by BorrowerBorrowers. Borrower Borrowers hereby irrevocably appoints appoint Lender as its their attorney-in-fact for the purposes set forth in the preceding sentence, subject to the rights of the Senior Lender. Subject to the rights of the Senior Lender, Lender may deduct from such insurance proceeds any reasonable expenses incurred by Lender in the collection and settlement thereof, including attorneys’ and adjustors’ fees and charges. Nothing contained in this Agreement shall create any responsibility or obligation of the Lender to collect any amounts owing on any insurance policy, to rebuild or replace the damaged or destroyed portions of the Project or to perform any other related act. The Lender shall not, by the fact of approving, disapproving, accepting, preventing, obtaining or failing to obtain any insurance, incur any liability for or with respect to the amount of insurance carried, the form or legal sufficiency of insurance contracts, solvency of insurance companies, or payment or defense of lawsuits, and the Borrower Borrowers hereby expressly assumes assume full responsibility therefor and all liability, if any, with respect thereto.

Appears in 2 contracts

Samples: Mezzanine Loan Agreement (Behringer Harvard Opportunity REIT I, Inc.), Mezzanine Loan Agreement (Behringer Harvard Opportunity REIT I, Inc.)

Settlement of Claim. In case of loss covered by any of such policies, Lender Agent, as agent for the Lenders is authorized to adjust, collect and compromise, in its discretion, all claims thereunder if an Event of Default has occurred and is continuing at the time, subject to the rights of the Senior Lenderthereunder. In the event of any adjustment, collection and compromise by LenderAgent, Borrower covenants to sign upon demand, or Lender Agent may sign or endorse endorse, on Borrower’s behalf, all necessary proofs of loss, receipts, releases and other papers required by the insurance companies to be signed by Borrower. Borrower hereby irrevocably appoints Lender Agent, as agent for the Lenders as its attorney-in-fact for the purposes set forth in the preceding sentence, subject to the rights of the Senior Lender. Subject to the rights of the Senior Lender, Lender Agent may deduct from such insurance proceeds any reasonable expenses incurred by Lender Agent and/or the Lenders in the collection and settlement thereof, including reasonable attorneys’ and adjustors’ fees and charges. Nothing contained in this Agreement shall create any responsibility or obligation of on the Lender Agent or the Lenders to collect any amounts owing on any insurance policy, to rebuild or replace the any damaged or destroyed portions of the Project Property or to perform any other related actact hereunder. The Lender Agent shall not, not by the fact of approving, disapproving, accepting, preventing, obtaining or failing to obtain any insurance, incur any liability for or with respect to the amount of insurance carried, the form or legal sufficiency of insurance contracts, solvency of insurance companies, or payment or defense of lawsuits, and the Borrower hereby expressly assumes full responsibility therefor and all liability, if any, with respect thereto.

Appears in 1 contract

Samples: Loan Agreement (KBS Strategic Opportunity REIT, Inc.)

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Settlement of Claim. In case of loss covered by any of such policies, Lender Agent, as agent for the Lenders is authorized to adjust, collect and compromise, in its discretion, all claims thereunder if an Event of Default has occurred and is continuing at the time, subject to the rights of the Senior Lenderthereunder. In the event of any adjustment, collection and compromise by LenderAgent, Borrower covenants to sign upon demand, or Lender Agent may sign or endorse endorse, on Borrower’s 's behalf, all necessary proofs of loss, receipts, releases and other papers required by the insurance companies to be signed by Borrower. Borrower hereby irrevocably appoints Lender Agent, as agent for the Lenders as its attorney-in-fact for the purposes set forth in the preceding sentence, subject to the rights of the Senior Lender. Subject to the rights of the Senior Lender, Lender Agent may deduct from such insurance proceeds any reasonable expenses incurred by Lender Agent and/or the Lenders in the collection and settlement thereof, including reasonable attorneys' and adjustors' fees and charges. Nothing contained in this Agreement shall create any responsibility or obligation of on the Lender Agent or the Lenders to collect any amounts owing on any insurance policy, to rebuild or replace the any damaged or destroyed portions of the Project Property or to perform any other related actact hereunder. The Lender Agent shall not, not by the fact of approving, disapproving, accepting, preventing, obtaining or failing to obtain any insurance, incur any liability for or with respect to the amount of insurance carried, the form or legal sufficiency of insurance contracts, solvency of insurance companies, or payment or defense of lawsuits, and the Borrower hereby expressly assumes full responsibility therefor and all liability, if any, with respect thereto.

Appears in 1 contract

Samples: Loan Agreement (KBS Real Estate Investment Trust III, Inc.)

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