Common use of Clearing Account Clause in Contracts

Clearing Account. If the Servicer finds it necessary to use a clearing account, the following guidelines must be followed: (a) the titles of such accounts must reflect that they are custodial in nature, and the depository in which the accounts are maintained must be informed in writing that the accounts are custodial accounts; (b) a check drawn on or funds transferred from a Custodial P&I Account or Custodial T&I Account must be deposited to a disbursement clearing account before or at the same time as any checks on the clearing account are issued; (c) a single clearing account must not be utilized both as a collection and disbursement clearing account; (d) the accounts must be held at depository institutions in which accounts are insured by the FDIC, through either the BIF or SAIF; (e) the Servicer must maintain adequate records and audit trails to support all debits and credits of each Borrower's payment records and accounts; and (f) collections deposited to a depository clearing account must be credited to the appropriate custodial account no later than one Business Day following receipt by the Servicer.

Clearing Account. If the Servicer finds it necessary to use a clearing account, the following guidelines must be followed: (a) the titles of such accounts must reflect that they are custodial in nature, and the depository in which the accounts are maintained must be informed in writing that the accounts are custodial accounts; (b) a check drawn on or funds transferred from a Custodial P&I Account or Custodial T&I Account must be deposited to a disbursement clearing account before or at the same time as any checks on the clearing account are issued; (c) a single clearing account must not be utilized both as a collection and disbursement clearing account; (d) the accounts must be held at depository institutions in which accounts are insured by the FDIC, through either the BIF or SAIF; (e) the Servicer must maintain adequate records and audit trails to support all debits and credits of each Borrower's ’s payment records and accounts; and (f) collections deposited to a depository clearing account must be credited to the appropriate custodial account no later than one Business Day following receipt by the Servicer.