Common use of Bankruptcies Clause in Contracts

Bankruptcies. If the Servicer has actual knowledge that a Borrower is the subject of a proceeding under the bankruptcy code or any other similar law, has made an assignment for the benefit of creditors, or has had a receiver or custodian appointed for its property, the Servicer will retain an attorney to pursue claims to payment on the Mortgage Loan and foreclosure on the Mortgaged Premises. If the Mortgaged Premises is acquired in an insolvency proceeding, it shall be acquired in the name of Owner or its designee. The Servicer will be responsible for representing the Owner's interest in any bankruptcy proceedings relating to the Borrower. The costs of protecting the Owner's interest shall be paid in accordance with Section 6.