Insurance Settlements; Assignment of Proceeds Clause Samples
The "Insurance Settlements; Assignment of Proceeds" clause governs how insurance payouts related to the contract are handled and who has the right to receive them. Typically, this clause specifies the process for settling insurance claims, such as requiring the consent of certain parties before accepting a settlement, and may allow one party to assign the right to receive insurance proceeds to another, such as a lender or landlord. Its core function is to ensure that insurance funds are properly distributed to the parties with a financial interest in the insured property or contract, thereby protecting their interests and clarifying the process for handling insurance recoveries.
Insurance Settlements; Assignment of Proceeds. If ▇▇▇▇▇▇▇▇ abandons the Property, Lender may file, negotiate, and settle any available insurance claim and related matters. If ▇▇▇▇▇▇▇▇ does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then ▇▇▇▇▇▇ may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 26 or otherwise, Borrower is unconditionally assigning to Lender (i) Borrower’s rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note and this Security Instrument, and (ii) any other of Borrower’s rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, to the extent that such rights are applicable to the coverage of the Property. If Lender files, negotiates, or settles a claim, ▇▇▇▇▇▇▇▇ agrees that any insurance proceeds may be made payable directly to Lender without the need to include Borrower as an additional loss payee. Lender may use the insurance proceeds either to repair or restore the Property (as provided in Section 5(d)) or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due.
Insurance Settlements; Assignment of Proceeds. If I abandon the Property, Lender may file, negotiate, and settle any available insurance claim and related matters. If I do not answer, within 30 days, a notice from ▇▇▇▇▇▇ stating that the insurance company has offered to settle a claim, ▇▇▇▇▇▇ may negotiate and settle any insurance claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 26, or otherwise, I give Lender (i) my rights to any Proceeds in an amount not greater than the amounts unpaid under the Note and this Security Instrument, and (ii) any other of my rights (other than the right to any refund of unearned premiums that I paid) under all insurance policies covering the Property, if the rights are applicable to the coverage of the Property. If Lender files, negotiates, or settles a claim, I agree that any Proceeds may be made payable directly to Lender without the need to include me as an additional loss payee. Lender may use the insurance proceeds either to repair or restore the Property (as provided in Section 5(d)) or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due.