Common use of Successor in Interest Clause in Contracts

Successor in Interest. If a Surety becomes insolvent, all rights or bene- fits conferred on the Surety under a valid and binding Prior Approval or PSB Agreement will accrue only to the trustee or receiver of the Surety. SBA will not be liable to the trustee or re- ceiver of the insolvent Surety except for the guaranteed portion of any Loss incurred and actually paid by such Sur- ety or its trustee or receiver under the guaranteed bonds.