Enforcement of Recourse Against Third Parties Sample Clauses

Enforcement of Recourse Against Third Parties. Except as hereinafter provided, and in each case with the prior written consent of the Issuer, the Servicer shall exercise any rights of recourse against third parties that exist with respect to any Lease Agreement in accordance with standards it applies in servicing aircraft engine lease agreements held for its own account. In any such proceeding, the Servicer, as agent of the Issuer, shall have the right, with the prior written consent of the Issuer, to (x) settle any such proceeding, (y) compromise any claims brought by a Lessee against the Servicer or the Issuer and (z) give a general release in connection with any proceeding by or against the Lessee arising out of or in connection with a Lease Agreement. In exercising such recourse rights, the Servicer is authorized on the Issuer’s and the Indenture Trustee’s behalf to reassign the Lease Agreement to the Person against whom recourse exists to the extent necessary, and on the terms set forth, in the document creating such recourse rights. Except as hereinafter provided, the Servicer will not reduce or diminish such recourse rights, unless (i) the Lease Agreement is in default, or the Servicer reasonably believes that a default is imminent, (ii) the Issuer delivers its prior written consent and (iii) the Servicer believes, in its good faith judgment, that such reduction or diminution in recourse rights is reasonably likely to maximize the net amount ultimately collected on such Lease Agreement after giving effect to reimbursement of any extraordinary out-of-pocket expenses payable pursuant to Section 3.04 and incurred by the Servicer in connection with the reduction or diminution of such recourse rights;