Assigned Prepayment Premiums Sample Clauses
The Assigned Prepayment Premiums clause defines the requirement for a borrower to pay a specified premium if they repay a loan or debt obligation before its scheduled maturity. Typically, this clause applies when a loan is transferred or assigned to another party, and the prepayment premium is intended to compensate the lender or assignee for the loss of anticipated interest income. By establishing clear terms for prepayment penalties in the event of assignment, this clause ensures that lenders are protected from financial loss due to early repayment and provides predictability in the event of loan transfers.
Assigned Prepayment Premiums. (a) Notwithstanding anything in this Agreement to the contrary, in the event of a voluntary Payoff, the Servicer may not waive any Prepayment Premium or portion thereof required by the terms of the related Mortgage Note:
(1) unless the related Mortgage Loan is in default or default is foreseeable and such waiver (i) is standard and customary in servicing mortgage loans similar to the Mortgage Loans and (ii) would, in the reasonable judgment of the Servicer, maximize recovery of total proceeds taking into account the value of such Prepayment Premium and the related Mortgage Loan,
(2) unless (i) the enforceability thereof is limited due to acceleration in connection with a foreclosure or other involuntary payment or (ii) the enforceability is otherwise limited or prohibited by applicable law,
(3) unless the enforceability would be considered “predatory” pursuant to written guidelines issued by any applicable federal, state or local authority having jurisdiction over such matters,
(4) unless the Servicer is unable to locate documentation sufficient to allow it to confirm the existence and amount of such Prepayment Premium after using commercially reasonable efforts to locate such documentation, which efforts shall include, but are not limited to, seeking such documentation from the Company, the Custodian and from its own records or files,
(5) unless (i) the Mortgage Loan was originated by the Servicer or an affiliate thereof and (ii) the Mortgagor sells the Mortgaged Property and obtains a new mortgage loan originated and serviced by the Servicer to purchase another property, provided that the prepayment is made no earlier than one year after origination,
(6) unless (i) the Mortgage Loan was originated by the Servicer or an affiliate thereof and (ii) the Payoff is made on a Mortgage Loan with a prepayment penalty term greater than twelve months and is made using the proceeds of another mortgage loan originated by the Servicer within 90 days of the end of the prepayment penalty term, if such mortgage loan qualifies under the Servicer’s then current policies for the administration of prepayment penalties for mortgage loans of the same type as the Mortgage Loan that the Servicer administers for its own account, or
(7) unless the Mortgage Loan is subject to the Relief Act at the time of such Payoff.
(b) If the Servicer has waived all or a portion of a Prepayment Premium relating to a voluntary Payoff in compliance with Section 3.20(a), then the Class PPP Certific...
Assigned Prepayment Premiums. At its option, the Servicer may invest funds withdrawn from the Custodial Accounts for P&I, as well as any Buydown Funds, Insurance Proceeds and Liquidation Proceeds previously received by the Servicer (including amounts paid by the Company in respect of any Purchase Obligation or its substitution obligations set forth in Section 2.07 or Section 2.08 or by the Servicer in connection with the exercise of the option to terminate this Agreement pursuant to Section 9.01) for its own account and at its own risk, during any period prior to their deposit in the Certificate Account. Such funds, as well as any funds which were withdrawn from the Custodial Accounts for P&I on or before the Withdrawal Date, but not yet deposited into the Certificate Account, shall immediately be deposited by the Servicer with the Investment Depository in an Investment Account in the name of the Servicer and the Trust for investment only as set forth in this Section 3.03. The Servicer shall bear any and all losses incurred on any investments made with such funds and shall be entitled to retain all gains realized on such investments as additional servicing compensation. Not later than the Business Day prior to the Distribution Date, the Servicer shall deposit such funds, net of any gains (except Payoff Earnings to the extent used to pay Compensating Interest) earned thereon, in the Certificate Account.
(b) Funds held in the Investment Account shall be invested in (i) one or more Eligible Investments which shall in no event mature later than the Business Day prior to the related Distribution Date (except if such Eligible Investments are obligations of the Trustee, such Eligible Investments may mature on the Distribution Date), or (ii) such other instruments as shall be required to maintain the Ratings.
Assigned Prepayment Premiums. Notwithstanding anything in this Agreement to the contrary, in the event of a voluntary Payoff of a WMB Loan, the Servicer may not waive any Prepayment Premium or portion thereof required by the terms of the related Mortgage Note: