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Rule 8 CONDITIONS,EXCEPTIONS AND LIMITATIONS
A. Payment first by the Member, subrogation and assignment
Unless the Directors in their discretion otherwise decide, it is a condition precedent of a Member’s right to recover from the Association in respect of any liabilities, costs or expenses that he shall first have discharged or paid the same.
Without prejudice to the Managers’ power under paragraph [H] of Rule 8 relating to the handling and settlement of claims, where the Association makes a payment to a Member and the Member has rights against a third party, whether by way of a claim for contribution, indemnity or otherwise arising out of a claim or matter in respect of which the Association has made such payment to the Member, the Association shall be subrogated to the rights of the Member in respect of the claim or matter to the extent of that payment, including the right to any interest accruing on that amount prior to its recovery from such third party and the right to recover any costs incurred in relation to the exercise of such rights.
The Member agrees to hold such rights as a trustee for the Association and to take such steps as the Association may direct with regard to his enforcement and recovery. All such recoveries, including interest and recovered costs howsoever and whensoever made, are to be paid to the Association, provided that if any such recovery exceeds the amounts paid by the Association, including interest and costs whether paid to the third parties or incurred by the Association, the balance shall be paid to the Member.
If required by the Association, the Member shall execute a legal assignment of such rights to the Association. In the event that such rights are not assignable or transferable as a matter of law, the Member undertakes not to dissolve himself or otherwise render himself incapable of taking such steps as may be required by the Association in enforcing any such rights against a third party.
B. No liability until Calls and other sums paid, and set-off
Without prejudice to anything elsewhere contained in these Rules it shall be a condition precedent of a Member’s right to recover from the Association in respect of any loss, damage, liabilities, costs or expenses that all Calls and other amounts whatsoever as shall have become due from the Member to the Association shall have been paid in full by the Member or by some assignee or other person on his behalf.
But, the Association may waive the above condition precedent, in such event the Association shall be entitled to set off any amount due from a Member against any amount due to him from the Association.
Without prejudice to anything elsewhere contained in these Rules, the Association shall be entitled to set off any amount due from a Member against any amount due to him from the Association.
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