Common use of Right to Defend Clause in Contracts

Right to Defend. Lender shall have the right, but not the obligation, at Borrower’s expense, to commence, to appear in or to defend any action or proceeding (initiated by a third party against Borrower) purporting to affect the rights or duties of the parties hereunder and in connection therewith pay out of the funds of the Loan all necessary expenses, including reasonable fees of counsel, if Borrower fails to so commence, appear in or defend any such action or proceeding with counsel satisfactory to Lender.

Appears in 8 contracts

Samples: Development Loan Agreement (Amrep Corp.), Loan Agreement (Amrep Corp.), Development Loan Agreement (Amrep Corp.)

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Right to Defend. Lender shall have the right, but not the obligation, at Borrower’s expense, to commence, to appear in or to defend any action or proceeding (initiated by a third party against Borrower) excluding any insured medical malpractice suit or claim, purporting to affect the rights or duties of the parties hereunder and in connection therewith pay out of the funds of the Loan loan all necessary expenses, including reasonable fees of counsel, if Borrower fails to so commence, appear in or defend any such action or proceeding proceedings with counsel reasonably satisfactory to Lender.

Appears in 4 contracts

Samples: Loan Agreement (Sunlink Health Systems Inc), Working Capital Loan Agreement (Sunlink Health Systems Inc), Mortgage Loan Agreement (Sunlink Health Systems Inc)

Right to Defend. Lender shall have the right, but not the obligation, at Borrower’s expense, to commence, to appear in or to defend any action or proceeding (initiated by a third party against Borrower) purporting to affect the rights or duties of the parties hereunder and in connection therewith pay out of the funds proceeds of the Loan all necessary expenses, including reasonable fees of counsel, if Borrower fails to so commence, appear in or defend any such action or proceeding with counsel satisfactory to Lender.

Appears in 2 contracts

Samples: Loan Agreement (Paycom Software, Inc.), Loan Agreement (Paycom Software, Inc.)

Right to Defend. Lender shall have the right, but not the obligation, at Borrower’s 's expense, to commence, to appear in or to defend any action or proceeding (initiated by a third party against Borrower) purporting to affect the rights or duties of the parties hereunder and in connection therewith pay out of the funds of the Loan all necessary expenses, including reasonable fees of counsel, if Borrower fails to so commence, appear in or defend any such action or proceeding with counsel satisfactory to Lender.

Appears in 1 contract

Samples: Loan Agreement (Leucadia National Corp)

Right to Defend. Lender shall have the right, but not the obligation, at Borrower’s expense, to commence, to appear in or to defend any action or proceeding (initiated by a third party against the Borrower) purporting to affect the rights or duties of the parties hereunder and in connection therewith pay out of the funds of the Loan loan all necessary expenses, including reasonable fees of counsel, if Borrower fails to so commence, appear in or defend any such action or proceeding proceedings with counsel satisfactory to Lender.

Appears in 1 contract

Samples: Loan Agreement (Campus Crest Communities, Inc.)

Right to Defend. Lender shall have the right, but not the obligation, at each Borrower’s expense, to commence, to appear in or to defend any action or proceeding (initiated by a third party against Borrower) purporting to affect the rights or duties of the parties hereunder and and, in connection therewith therewith, pay out of the funds of the Loan all necessary expenses, including reasonable fees of counsel, if Borrower fails to so commence, appear in or defend any such action or proceeding with counsel satisfactory to Lender, except in a suit by the Borrowers against Lender, in which case the prevailing party shall be entitled to such fees and expenses as a part of any judgment obtained.

Appears in 1 contract

Samples: Loan and Security Agreement (Novan, Inc.)

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Right to Defend. Lender shall have the right, but not the obligation, at each Borrower’s expense, to commence, to appear in or to defend any action or proceeding (initiated by a third party against Borrower) purporting to affect the rights or duties of the parties hereunder and and, in connection therewith therewith, pay out of the funds of the Loan Loans all necessary expenses, including reasonable fees of counsel, if Borrower fails to so commence, appear in or defend any such action or proceeding with counsel satisfactory to LenderLender in its sole discretion, except in a suit by the Borrowers against Xxxxxx, in which case the prevailing party shall be entitled to such fees and expenses as a part of any judgment obtained.

Appears in 1 contract

Samples: Possession Loan and Security Agreement (Novan, Inc.)

Right to Defend. Lender shall have the right, but not the obligationobliga­ tion, at Borrower’s 's expense, to commence, to appear in or to defend any action or proceeding (initiated by a third party against Borrower) purporting to affect the rights or duties of the parties hereunder and in connection therewith pay out of the funds proceeds of the Loan all necessary expenses, including reasonable fees of counsel, if Borrower fails to so commence, appear in or defend any such action or proceeding with counsel satisfactory to Lender.

Appears in 1 contract

Samples: Loan Agreement (Paycom Software, Inc.)

Right to Defend. Lender shall have the right, but not the obligation, at Borrower’s and Borrower Parent’s expense, to commence, to appear in or to defend any action or proceeding (initiated by a third party against BorrowerBorrower or Borrower Parent) purporting to affect the rights or duties of the parties hereunder and in connection therewith pay out of the funds of the Loan all necessary expenses, including reasonable fees of counsel, if Borrower or Borrower Parent fails to so commence, appear in or defend any such action or proceeding with counsel satisfactory to Lender.

Appears in 1 contract

Samples: Loan and Security Agreement (Addvantage Technologies Group Inc)

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