It seems that the clause implies that if the damages, costs, or proceeds are insufficient, the undertaking will only cover the amount actually received, not necessarily the full loan balance.
Is there a specific concern you have about the remaining loan balance?
That the borrower is not liable
It sounds like you're concerned that the borrower might still be liable for any remaining loan balance after applying the damages, costs, or proceeds. Generally, such clauses mean that the borrower is only responsible for the amount recovered.
Is there a specific clause in the contract that you would like further clarification on?
And what does this mean In the event that the Borrower is not in breach of this Agreement and the damages and/or costs are
awarded in respect of the Legal Claim either by a court of competent jurisdiction or by way of Settlement
with the Defendant and the amount paid to the Lender by the Solicitor pursuant to the Legal Claim or in
settlement is insufficient to discharge the full amount of the Credit or the Balance of Credit plus accrued
Interest and Fees the amount paid will be accepted by the Lender in full and final settlement of this
Agreement and the Lender shall write off the balance owed and have no recourse against the Borrower
for the remaining balance.
This clause means that if the borrower is not in breach of the agreement and the damages or costs awarded from the legal claim are not enough to cover the full loan amount, including interest and fees, the lender will accept the amount paid as full settlement. The lender will then write off any remaining balance, and the borrower will not owe anything more.
Do you have any other questions regarding this agreement?
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