Common use of Compromise Settlement Clause in Contracts

Compromise Settlement. Com- promise settlements must be approved by the Lender and the Agency. Com- plete current financial information on all parties obligated for the loan must be provided. At a minimum, the com- promise settlement must be equivalent to the value and timeliness of that which would be received from attempt- ing to collect on the guarantee. The guarantor cannot be released from li- ability until the full amount of the compromise settlement has been re- ceived. In weighing whether the com- promise settlement should be accepted, among other things, the Agency will weigh whether the compromise is more financially advantageous than col- lecting on the guarantee.

Compromise Settlement. Com- promise settlements must be approved by the Lender lender and the Agency. Com- plete current financial information on all parties obligated for the loan must be provided. At a minimum, the com- promise settlement must be equivalent to the value and timeliness of that which would be received from attempt- ing to collect on the guarantee. The guarantor cannot be released from li- ability until the full amount of the compromise settlement has been re- ceived. In weighing whether the com- promise settlement should be accepted, among other things, the Agency will weigh whether the compromise comparison is more financially advantageous than col- lecting on the guarantee.