Common use of Third Party Damage Clause in Contracts

Third Party Damage. If the conduct of a third party causes a decrease in the value of the mortgaged property, the indemnification of the loss shall be deposited in a bank account assigned by Party A. Party B agrees that Party A has the right to select whatever mode listed below to manage this indemnification of the loss, and Party B shall cooperate with Party A with the formalities: (1) Discharge or discharge ahead of time all or a part of the debt under the Principal Contract. (2) Transfer it into a fixed deposit, and use the deposit receipt to provide a guaranty of pledge on the debt under the Principal Contract, while conclude a relevant pledge contract with Party A. (3) Transfer it into a security to provide a guaranty of pledge on the debt under the Principal Contract, and conclude a relevant pledge contract with Party A. (4) Use it to renovate the mortgaged property by written agreement of Party A to restore the value of the mortgaged property. (5) After providing further guaranty in conformity of the requirement of Party A, Party B may dispose the indemnification at his will. If the conduct of a third party causes the value of the mortgaged property to become insufficient to discharge all the debt under the Principal Contract, Party B shall provide a further guaranty recognized by Party A, while the remaining value of the mortgaged property is still used for the guaranty of the claim.