Common use of Settlement of Claims Clause in Contracts

Settlement of Claims. Lender is authorized to collect and apply the Miscellaneous Proceeds either to the sums secured by this Security Instrument, whether or not then due, or to restoration or repair of the Property, if Borrower (i) abandons the Property, or (ii) fails to respond to Lender within 30 days after the date Lender notifies Borrower that the Opposing Party (as defined in the next sentence) offers to settle a claim for damages. “Opposing Party” means the third party that owes Borrower the Miscellaneous Proceeds or the party against whom Xxxxxxxx has a right of action in regard to the Miscellaneous Proceeds.