Common use of Administration of Loans Clause in Contracts

Administration of Loans. Except as otherwise provided herein, Lender shall hold the Loan Instruments and service the Loan, including processing all payments. Lender, however, shall not, without prior written consent of Authority: (a) make or consent to any substantial alteration in the terms of any Loan Instrument ("substantial" includes, but is not limited to, increases or decreases in the principal amount due under the Loan or in the interest rate for the Loan); (b) take any action that benefits or confers a preference on Lender or any other holder of the note; (c) make or consent to any release of collateral, except collateral that is routinely purchased and sold in the normal operation of the Applicant's business; (d) accelerate the maturity of any note; (e) sue or foreclose upon any Loan Instrument, except that partial or complete drawings upon any letter of credit pledged as security for any note or for the obligations of Applicant or any other party under any other Loan Instrument shall be permitted without the prior written consent of Authority if such letter of credit drafts are necessary to prevent the letter of credit from expiring without having been renewed or replaced; (f) waive any claim against any borrower, guarantor, obligor or standby creditor arising out of any Loan Instrument; or (g) resell or otherwise dispose of any collateral acquired at a foreclosure sale. Lender may make remedial adjustments in the terms and conditions of a Loan as may be authorized by the Authority. Lender represents and warrants to Authority that it has and will continue to have the ability to evaluate and service each Loan and to perform its obligations under the Loan Instruments, to make all required reports to Authority concerning the status of a Loan or the Applicant, and to undertake efforts to collect each Loan upon default.

Administration of Loans. Except as otherwise provided herein, Lender shall hold the Loan Instruments and service the Loan, including processing all payments. Lender, however, shall not, without prior written consent of Authority: (a) make or consent to any substantial alteration in the terms of any Loan Instrument ("substantial" includes, but is not limited to, increases or decreases in the principal amount due under the Loan or in the interest rate for the Loan); (b) take any action that benefits or confers a preference on Lender or any other holder of the note; (c) make or consent to any release of collateral, except collateral that is routinely purchased and sold in the normal operation of the Applicant's business; (d) accelerate the maturity of any note; (e) sue xxx or foreclose upon any Loan Instrument, except that partial or complete drawings upon any letter of credit pledged as security for any note or for the obligations of Applicant or any other party under any other Loan Instrument shall be permitted without the prior written consent of Authority if such letter of credit drafts are necessary to prevent the letter of credit from expiring without having been renewed or replaced; (f) waive any claim against any borrower, guarantor, obligor or standby creditor arising out of any Loan Instrument; or (g) resell or otherwise dispose of any collateral acquired at a foreclosure sale. Lender may make remedial adjustments in the terms and conditions of a Loan as may be authorized by the Authority. Lender represents and warrants to Authority that it has and will continue to have the ability to evaluate and service each Loan and to perform its obligations under the Loan Instruments, to make all required reports to Authority concerning the status of a Loan or the Applicant, and to undertake efforts to collect each Loan upon default.