Common use of Appropriate Proceedings Clause in Contracts

Appropriate Proceedings. Subject only to the provisions of Sections 9 and 12(E) below: A. The Insured shall commence and diligently pursue Appropriate Proceedings, but in no event later than six (6) months after it is permitted to do so pursuant to the terms of the Loan and applicable law. If directed by the Company, the Insured shall commence Appropriate Proceedings as soon as it is permitted to do so pursuant to the terms of the Loan and applicable law. B. The Insured shall notify the Company of all notices and pleadings filed or required in connection with Appropriate Proceedings, and furnish such notices and pleadings to the Company upon request. C. Bidding Instructions. 1. The Company may give specific foreclosure sale bidding instructions to the Insured that do not require a minimum bid of less than fair market value and are in accordance with applicable law; provided, however, that the Company will not specify a maximum bid that would increase the Insured’s uninsured loss with respect to the applicable Property. 2. In the absence of specific bidding instructions, the Insured may control the bidding process in a manner that mitigates the Loss. 3. In the event of either (1) or (2), above, unless the Company elects in writing prior to the foreclosure sale to purchase the Property, any third-party purchase at foreclosure will be treated as an Approved Sale.