Common use of Collection and Liquidation of Transferred Mortgage Loans Clause in Contracts

Collection and Liquidation of Transferred Mortgage Loans. Continuously from each Servicing Transfer Date until the date each Transferred Mortgage Loan ceases to be subject to this Agreement, the Special Servicer shall proceed diligently to collect all payments due under each of the Transferred Mortgage Loans when the same shall become due and payable and shall take special care in ascertaining and estimating Escrow Payments, to the extent such payments are required to be made by the related Mortgagor, and all other charges that will become due and payable with respect to the Transferred Mortgage Loans and each related Mortgaged Property, to the end that the installments payable by the Mortgagors will be sufficient to pay such charges as and when they become due and payable. The Special Servicer shall use its best efforts, consistent with the procedures that the Special Servicer would use in servicing similar mortgage loans for other institutional investors, to foreclose upon or otherwise comparably convert the ownership of such Mortgaged Properties as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.01. The Special Servicer shall use its best efforts to realize upon defaulted Transferred Mortgage Loans in such a manner as will maximize the receipt of principal and interest by the Trust Fund, taking into account, among other things, the timing of foreclosure proceedings. The foregoing is subject to the provisions that, in any case in which Mortgaged Property shall have suffered damage, the Special Servicer shall not be required to expend its own funds toward the restoration of such property unless it shall determine in its discretion (i) that such restoration will increase the proceeds of liquidation of the related Transferred Mortgage Loan to the Master Servicer after reimbursement to itself for such expenses, and (ii) that such expenses will be recoverable by the Special Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property. In the event that any payment due under any Transferred Mortgage Loan and not postponed pursuant to Section 3.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Transferred Mortgage Loan and such failure continues beyond any applicable grace period, the Special Servicer shall take such action as (1) the Special Servicer would take for other institutional investors under similar circumstances with respect to a similar mortgage loan, (2) shall be consistent with Accepted Servicing Practices, (3) the Special Servicer shall determine prudently to be in the best interest of the Trust Fund, and (4) is consistent with any related LPMI Policy.

Collection and Liquidation of Transferred Mortgage Loans. Continuously from each Servicing Transfer Date until the date each Transferred Mortgage Loan ceases to be subject to this Agreement, the Special Servicer shall proceed diligently to collect all payments due under each of the Transferred Mortgage Loans when the same shall become due and payable and shall take special care in ascertaining and estimating Escrow Payments, to the extent such payments are required to be made by the related Mortgagor, and all other charges that will become due and payable with respect to the Transferred Mortgage Loans and each related Mortgaged Property, to the end that the installments payable by the Mortgagors will be sufficient to pay such charges as and when they become due and payable. The Special Servicer shall use its best efforts, consistent with the procedures that the Special Servicer would use in servicing similar mortgage loans for other institutional investors, to foreclose upon or otherwise comparably convert the ownership of such Mortgaged Properties as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.01. The Special Servicer shall use its best efforts to realize upon defaulted Transferred Mortgage Loans in such a manner as will maximize the receipt of principal and interest by the Trust FundTrustee, taking into account, among other things, the timing of foreclosure proceedings. The foregoing is subject to the provisions that, in any case in which Mortgaged Property shall have suffered damage, the Special Servicer shall not be required to expend its own funds toward the restoration of such property unless it shall determine in its discretion (i) that such restoration will increase the proceeds of liquidation of the related Transferred Mortgage Loan to the Master Servicer after reimbursement to itself for such expenses, and (ii) that such expenses will be recoverable by the Special Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property. In the event that any payment due under any Transferred Mortgage Loan and not postponed pursuant to Section 3.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Transferred Mortgage Loan and such failure continues beyond any applicable grace period, the Special Servicer shall take such action as (1) the Special Servicer would take for other institutional investors under similar circumstances with respect to a similar mortgage loan, (2) shall be consistent with Accepted Servicing Practices, (3) the Special Servicer shall determine prudently to be in the best interest of the Trust Fund, and (4) is consistent with any related LPMI Policy.