Right to Elect To Apply Proceeds Clause Samples
The "Right to Elect To Apply Proceeds" clause grants a party the authority to decide how funds received, typically from insurance claims or asset sales, are allocated or used. In practice, this means that if an insured event occurs or collateral is liquidated, the designated party can choose whether the proceeds are used to repair or replace damaged property, pay down outstanding debt, or for another specified purpose. This clause ensures flexibility in managing financial outcomes and helps address the interests of both parties by clarifying who controls the disposition of significant funds, thereby reducing disputes over their application.
Right to Elect To Apply Proceeds. In case of material loss or damage to the Property or to the Improvements by fire, by a taking by condemnation for public use or the action of any governmental authority or agency, or the transfer by private sale in lieu thereof, either temporarily or permanently, or otherwise, if in the sole judgment of Agent there is reasonable doubt as to Company's ability to complete construction of the Improvements on or before October 1, 2007, by reason of such loss or damage or because of delays in making settlements with governmental agencies or authorities or with insurers, Agent may terminate its obligations to make advances hereunder and elect to collect, retain and apply to the Commitment all proceeds of the taking or insurance after deduction of all expense of collection and settlement, including attorneys' and adjusters' fees and charges. In the event such proceeds are insufficient to pay the Commitment in full, Agent may declare the balance remaining unpaid on the Commitment to be due and payable forthwith and avail itself on any of the remedies afforded thereby as in any case of default.
Right to Elect To Apply Proceeds. In case of material loss or damage to the Property or the Improvements by fire or other casualty, by a taking by condemnation for public use or the action of any governmental authority or agency, or the transfer by private sale in lieu thereof, either temporarily or permanently, or otherwise, if in the sole judgment of Lender there is reasonable doubt as to CGI's ability to complete construction of the Improvements on or before the Completion Date by reason of such loss or damage or because of delays in making settlements with governmental agencies or authorities or with insurers, Lender may terminate its obligations to make Advances hereunder and elect to collect, retain and apply to the outstanding balance all proceeds of the taking or insurance after deduction of all expenses of collection and settlement, including attorneys' and adjusters' fees and charges. In the event such proceeds are insufficient to pay the outstanding balance in full, Lender may declare the balance remaining unpaid on the outstanding balance to be due and payable forthwith and avail itself of any of the remedies afforded hereby as in case of any Event of Default.