Common use of Collection of Mortgage Loans; Collection Accounts; Certificate Account; Pre-Funding Account; Capitalized Interest Account Clause in Contracts

Collection of Mortgage Loans; Collection Accounts; Certificate Account; Pre-Funding Account; Capitalized Interest Account.

Collection of Mortgage Loans; Collection Accounts; Certificate Account; Pre-Funding Account; Capitalized Interest Account. (a) Continuously from the date hereof until the principal and interest on all Mortgage Loans have been paid in full or such Mortgage Loans have become Liquidated Mortgage Loans, each Servicer shall proceed in accordance with Accepted Servicing Practices to collect all payments due under each of the related Mortgage Loans when the same shall become due and payable to the extent consistent with this Agreement and, consistent with such standard, with respect to Escrow Mortgage Loans, a Servicer shall ascertain and estimate Escrow Payments and all other charges that will become due and payable with respect to the Mortgage Loans and the Mortgaged Properties, 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. Consistent with the foregoing, in connection with Mortgage Loans which it is directly servicing, each Servicer may in its discretion (i) waive any late payment charge or any prepayment charge or penalty interest in connection with the prepayment of a Mortgage Loan and (ii) extend the Due Dates for payments due on a Mortgage Note for a period not greater than 180 days; provided, however, that no such Servicer can extend the maturity of any such Mortgage Loan past the date on which the final payment is due on the latest maturing Mortgage Loan as of the Cut-off Date. Consistent with the foregoing, in instances when a Mortgage Loan is in default or default is reasonably foreseeable (within the meaning of the REMIC Provisions), the related Servicer may modify the terms of such Mortgage Loan to (1) capitalize to the principal balance of any unreimbursed Advances, unreimbursed Servicing Advances, unpaid Servicing Fees, and related amounts due to the related Servicer with respect to the related Mortgage Loan; (2) defer such amounts to a balloon payment due on the final payment date of such Mortgage Loan; (3) extend the maturity of any such Mortgage Loan, but in no instance past the date on which the final payment is due on the latest maturing Mortgage Loan as of the Cut-off Date; and/or (4) reduce the related Mortgage Rate (provided that the Mortgage Rate of any adjustable rate Mortgage Loan may not be reduced below the Mortgage Rate of such Mortgage Loan immediately prior to the related first adjustment date), provided, however, the Servicer shall not be entitled to reimbursement from the Trust Fund for any fee in connection with any such modification. Any such waiver, modification, postponement or indulgence granted to a Mortgagor by a Servicer in connection with its servicing of the related First Mortgage Loan shall not be considered relevant to a determination of whether such Servicer has acted consistently with the terms and standards of this Agreement, so long as in such Servicer’s determination such action is not materially adverse to the interests of the Certificateholders. Notice of any such modifications shall be provided (i) in writing, by the related Servicer to the Depositor and the Trustee or (ii) as part of the monthly report delivered by the related Servicer to the Trustee. In the event of any such arrangement that permits the deferment of principal and interest payment on any Mortgage Loan, the related Servicer shall make Advances on the related Mortgage Loan in accordance with the provisions of Section 4.01 during the scheduled period in accordance with the amortization schedule of such Mortgage Loan without modification thereof by reason of such arrangements. Each Servicer shall not be required to institute or join in litigation with respect to collection of any payment (whether under a Mortgage, Mortgage Note or otherwise or against any public or governmental authority with respect to a taking or condemnation) if it reasonably believes that enforcing the provision of the Mortgage or other instrument pursuant to which such payment is required is prohibited by applicable law.

Collection of Mortgage Loans; Collection Accounts; Certificate Account; Pre-Funding Account; Capitalized Interest Account. (a) Continuously from the date hereof until the principal and interest on all Mortgage Loans have been paid in full or such Mortgage Loans have become Liquidated Mortgage Loans, each Servicer shall proceed in accordance with Accepted Servicing Practices to collect all payments due under each of the related Mortgage Loans when the same shall become due and payable to the extent consistent with this Agreement and, consistent with such standard, with respect to Escrow Mortgage Loans, a Servicer shall ascertain and estimate Escrow Payments and all other charges that will become due and payable with respect to the Mortgage Loans and the Mortgaged Properties, 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. Consistent with the terms of this Agreement, each Servicer may also waive, modify or vary any term of any Mortgage Loan or consent to the postponement of strict compliance with any such term or in any manner grant indulgence to any Mortgagor if in such Servicer’s determination such waiver, modification, postponement or indulgence is not materially adverse to the interests of the Certificateholders (taking into account any estimated Realized Loss that might result absent such action); provided, however, that such Servicer may not modify materially or permit any Subservicer to modify any Mortgage Loan (unless such Mortgage Loan is in default or, in the judgment of such Servicer, such default is reasonably foreseeable), including without limitation any modification that would change the Mortgage Rate, forgive the payment of any principal or interest (unless in connection with the liquidation of the related Mortgage Loan or except in connection with Principal Prepayments to the extent that such reamortization is not inconsistent with the terms of the Mortgage Loan), increase the principal balance, or extend the final maturity date of such Mortgage Loan, and, provided however, that in no event shall such modification reduce the interest rate on a Mortgage Loan below the rate at which the Servicing Fee with respect to such Mortgage Loan accrues, and provided, further, that any such waiver, modification, postponement or indulgence granted to a Mortgagor by a Servicer in connection with its servicing of the related First Mortgage Loan shall not be considered relevant to a determination of whether such Servicer has acted consistently with the terms and standards of this Agreement, so long as in such Servicer’s determination such action is not materially adverse to the interests of the Certificateholders. In the event of any such arrangement that permits the deferment of principal and interest payment on any Mortgage Loan, the related Servicer shall make Advances on the related Mortgage Loan in accordance with the provisions of Section 4.01 during the scheduled period in accordance with the amortization schedule of such Mortgage Loan without modification thereof by reason of such arrangements. Each Servicer shall not be required to institute or join in litigation with respect to collection of any payment (whether under a Mortgage, Mortgage Note or otherwise or against any public or governmental authority with respect to a taking or condemnation) if it reasonably believes that enforcing the provision of the Mortgage or other instrument pursuant to which such payment is required is prohibited by applicable law.

Collection of Mortgage Loans; Collection Accounts; Certificate Account; Pre-Funding Account; Capitalized Interest Account. (a) Continuously from the date hereof until the principal and interest on all Mortgage Loans have been paid in full or such Mortgage Loans have become Liquidated Mortgage Loans, the Servicer shall proceed in accordance with Accepted Servicing Practices to collect all payments due under the Mortgage Loans when the same shall become due and payable to the extent consistent with this Agreement and, consistent with such standard, with respect to Escrow Mortgage Loans, the Servicer shall ascertain and estimate Escrow Payments and all other charges that will become due and payable with respect to the Mortgage Loans and the Mortgaged Properties, 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. Consistent with the foregoing, in connection with Mortgage Loans which it is directly servicing, the Servicer may in its discretion (i) waive any late payment charge or any prepayment charge or penalty interest in connection with the prepayment of a Mortgage Loan (provided that any such related prepayment charge waiver shall be in accordance with the provisions of Section 4.09) and (ii) extend the Due Dates for payments due on a Mortgage Note for a period not greater than 180 days; provided, however, that the Servicer cannot extend the maturity of any such Mortgage Loan past the date on which the final payment is due on the latest maturing Mortgage Loan as of the Cut-off Date. Consistent with the foregoing, in instances when a Mortgage Loan is in default or default is reasonably foreseeable (within the meaning of the REMIC Provisions), the Servicer may modify the terms of such Mortgage Loan to (1) capitalize to the principal balance of any unreimbursed Advances, unreimbursed Servicing Advances, unpaid Servicing Fees, and related amounts due to the Servicer with respect to the related Mortgage Loan; (2) defer such amounts to a balloon payment due on the final payment date of such Mortgage Loan; (3) extend the maturity of any such Mortgage Loan, but in no instance past the date on which the final payment is due on the latest maturing Mortgage Loan as of the Cut-off Date; (4) reduce the related Mortgage Rate; and/or (5) accept less than the outstanding principal balance as satisfaction of such Mortgage Loan; provided, however, that the aggregate principal balance of all mortgage loans subject to modifications (measured at the time of the modification and after giving effect to any modification) can be no more than five percent of the Aggregate Collateral Balance as of the Cut-off Date, provided, that such limit may be increased from time to time if each Rating Agency provides written confirmation that an increase in excess of that limit will not reduce the rating assigned to any Class of Certificates by such Rating Agency below the lower of the then-current rating or the rating assigned to such Certificates as of the Closing Date by such Rating Agency. Any such waiver, modification, postponement or indulgence granted to a Mortgagor by the Servicer in connection with its servicing of the related First Mortgage Loan shall not be considered relevant to a determination of whether the Servicer has acted consistently with the terms and standards of this Agreement, so long as in the Servicer’s determination such action is not materially adverse to the interests of the Certificateholders. Notice of any such modifications shall be provided (i) in writing, by the Servicer to the Depositor and the Trustee or (ii) as part of the monthly report delivered by the Servicer to the Trustee. In the event of any such arrangement that permits the deferment of principal and interest payment on any Mortgage Loan, the Servicer shall make Advances on the related Mortgage Loan in accordance with the provisions of Section 4.01 during the scheduled period in accordance with the amortization schedule of such Mortgage Loan without modification thereof by reason of such arrangements. The Servicer shall not be required to institute or join in litigation with respect to collection of any payment (whether under a Mortgage, Mortgage Note or otherwise or against any public or governmental authority with respect to a taking or condemnation) if it reasonably believes that enforcing the provision of the Mortgage or other instrument pursuant to which such payment is required is prohibited by applicable law.

Collection of Mortgage Loans; Collection Accounts; Certificate Account; Pre-Funding Account; Capitalized Interest Account. (a) Continuously from the date hereof until the principal and interest on all Mortgage Loans have been paid in full or such Mortgage Loans have become Liquidated Mortgage Loans, the Servicer shall proceed in accordance with the customary and usual standards of practice of prudent mortgage loan servicers to collect all payments due under each of the related Mortgage Loans when the same shall become due and payable to the extent consistent with this Agreement and shall take special care with respect to Mortgage Loans for which the Servicer collects escrow payments in ascertaining and estimating Escrow Payments and all other charges that will become due and payable with respect to the Mortgage Loans and the Mortgaged Properties, 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. Consistent with the terms of this Agreement, the Servicer may also waive, modify or vary any term of any Mortgage Loan or consent to the postponement of strict compliance with any such term or in any manner grant indulgence to any Mortgagor if in such Servicer's determination such waiver, modification, postponement or indulgence is not materially adverse to the interests of the Certificateholders (taking into account any estimated Realized Loss that might result absent such action); PROVIDED, HOWEVER, that the Servicer may not modify materially or permit any Subservicer to modify any Mortgage Loan, including without limitation any modification that would change the Mortgage Rate, forgive the payment of any principal or interest (unless in connection with the liquidation of the related Mortgage Loan or except in connection with prepayments to the extent that such reamortization is not inconsistent with the terms of the Mortgage Loan), or extend the final maturity date of such Mortgage Loan, unless such Mortgage Loan is in default or, in the judgment of the Servicer, such default is reasonably foreseeable; and that no such modification shall reduce the interest rate on a Mortgage Loan below the rate at which the Servicing Fee with respect to such Mortgage Loan accrues; provided however, no such modification will be granted without the prior consent of the Pool Insurer if so required in the Pool Insurance Policy or the Special Hazard Insurer if so required in the Special Hazard Insurance Policy. In the event of any such arrangement, the Servicer shall make Advances on the related Mortgage Loan in accordance with the provisions of Section 4.01 during the scheduled period in accordance with the amortization schedule of such Mortgage Loan without modification thereof by reason of such arrangements. The Servicer shall not be required to institute or join in litigation with respect to collection of any payment (whether under a Mortgage, Mortgage Note or otherwise or against any public or governmental authority with respect to a taking or condemnation) if it reasonably believes that enforcing the provision of the Mortgage or other instrument pursuant to which such payment is required is prohibited by applicable law.

Collection of Mortgage Loans; Collection Accounts; Certificate Account; Pre-Funding Account; Capitalized Interest Account. (a) Continuously from the date hereof until the principal and interest on all Mortgage Loans have been paid in full or such Mortgage Loans have become Liquidated Mortgage Loans, each Servicer shall proceed in accordance with Accepted Servicing Practices to collect all payments due under each of the related Mortgage Loans when the same shall become due and payable to the extent consistent with this Agreement and, consistent with such standard, with respect to Escrow Mortgage Loans, a Servicer shall ascertain and estimate Escrow Payments and all other charges that will become due and payable with respect to the Mortgage Loans and the Mortgaged Properties, 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. Consistent with the terms of this Agreement, each Servicer may also waive, modify or vary any term of any Mortgage Loan or consent to the postponement of strict compliance with any such term or in any manner grant indulgence to any Mortgagor if in such Servicer’s determination such waiver, modification, postponement or indulgence is not materially adverse to the interests of the Certificateholders (taking into account any estimated Realized Loss that might result absent such action); provided, however, that such Servicer may not modify materially or permit any Subservicer to modify any Mortgage Loan (unless such Mortgage Loan is in default or, in the judgment of such Servicer, such default is reasonably foreseeable), including without limitation any modification that would change the Mortgage Rate, forgive the payment of any principal or interest (unless in connection with the liquidation of the related Mortgage Loan or except in connection with Principal Prepayments to the extent that such reamortization is not inconsistent with the terms of the Mortgage Loan), increase the principal balance, or extend the final maturity date of such Mortgage Loan, and, provided however, that in no event shall such modification reduce the interest rate on a Mortgage Loan below the rate at which the Servicing Fee with respect to such Mortgage Loan accrues and provided, further, that any such waiver, modification, postponement or indulgence granted to a Mortgagor by a Servicer in connection with its servicing of the related First Mortgage Loan shall not be considered relevant to a determination of whether such Servicer has acted consistently with the terms and standards of this Agreement, so long as in such Servicer’s determination such action is not materially adverse to the interests of the Certificateholders. In the event of any such arrangement that permits the deferment of principal and interest payment on any Mortgage Loan, the related Servicer shall make Advances on the related Mortgage Loan in accordance with the provisions of Section 4.01 during the scheduled period in accordance with the amortization schedule of such Mortgage Loan without modification thereof by reason of such arrangements. Each Servicer shall not be required to institute or join in litigation with respect to collection of any payment (whether under a Mortgage, Mortgage Note or otherwise or against any public or governmental authority with respect to a taking or condemnation) if it reasonably believes that enforcing the provision of the Mortgage or other instrument pursuant to which such payment is required is prohibited by applicable law.

Collection of Mortgage Loans; Collection Accounts; Certificate Account; Pre-Funding Account; Capitalized Interest Account. (a) Continuously from the date hereof until the principal and interest on all Mortgage Loans have been paid in full or such Mortgage Loans have become Liquidated Mortgage Loans, each Servicer shall proceed in accordance with Accepted Servicing Practices to collect all payments due under each of the related Mortgage Loans when the same shall become due and payable to the extent consistent with this Agreement and, consistent with such standard, with respect to Escrow Mortgage Loans, a Servicer shall ascertain and estimate Escrow Payments and all other charges that will become due and payable with respect to the Mortgage Loans and the Mortgaged Properties, 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. Consistent with the terms of this Agreement, each Servicer may also waive, modify or vary any term of any Mortgage Loan or consent to the postponement of strict compliance with any such term or in any manner grant indulgence to any Mortgagor if in such Servicer's determination such waiver, modification, postponement or indulgence is not materially adverse to the interests of the Certificateholders (taking into account any estimated Realized Loss that might result absent such action); provided, however, that such Servicer may not modify materially or permit any Subservicer to modify any Mortgage Loan (unless such Mortgage Loan is in default or, in the judgment of such Servicer, such default is reasonably foreseeable), including without limitation any modification that would change the Mortgage Rate, forgive the payment of any principal or interest (unless in connection with the liquidation of the related Mortgage Loan or except in connection with Principal Prepayments to the extent that such reamortization is not inconsistent with the terms of the Mortgage Loan), increase the principal balance, or extend the final maturity date of such Mortgage Loan, and, provided however, that in no event shall such modification reduce the interest rate on a Mortgage Loan below the rate at which the Servicing Fee with respect to such Mortgage Loan accrues, provided, further, no such modification will be granted without the prior consent of the Credit Insurance Provider if so required in the Credit Insurance Policy and provided, further, that any such waiver, modification, postponement or indulgence granted to a Mortgagor by a Servicer in connection with its servicing of the related First Mortgage Loan shall not be considered relevant to a determination of whether such Servicer has acted consistently with the terms and standards of this Agreement, so long as in such Servicer's determination such action is not materially adverse to the interests of the Certificateholders. In the event of any such arrangement that permits the deferment of principal and interest payment on any Mortgage Loan, the related Servicer shall make Advances on the related Mortgage Loan in accordance with the provisions of Section 4.01 during the scheduled period in accordance with the amortization schedule of such Mortgage Loan without modification thereof by reason of such arrangements. Each Servicer shall not be required to institute or join in litigation with respect to collection of any payment (whether under a Mortgage, Mortgage Note or otherwise or against any public or governmental authority with respect to a taking or condemnation) if it reasonably believes that enforcing the provision of the Mortgage or other instrument pursuant to which such payment is required is prohibited by applicable law.

Collection of Mortgage Loans; Collection Accounts; Certificate Account; Pre-Funding Account; Capitalized Interest Account. (a) Continuously from the date hereof until the principal and interest on all Mortgage Loans have been paid in full or such Mortgage Loans have become Liquidated Mortgage Loans, each Servicer shall proceed in accordance with Accepted Servicing Practices to collect all payments due under each of the related Mortgage Loans when the same shall become due and payable to the extent consistent with this Agreement and, consistent with such standard, with respect to Escrow Mortgage Loans, a Servicer shall ascertain and estimate Escrow Payments and all other charges that will become due and payable with respect to the Mortgage Loans and the Mortgaged Properties, 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. Consistent with the foregoing, in connection with Mortgage Loans which it is directly servicing, each Servicer may in its discretion (i) waive any late payment charge or any prepayment charge or penalty interest in connection with the prepayment of a Mortgage Loan (provided that any such related prepayment charge waiver shall be in accordance with the provisions of Section 4.09) and (ii) extend the Due Dates for payments due on a Mortgage Note for a period not greater than 180 days; provided, however, that no such Servicer can extend the maturity of any such Mortgage Loan past the date on which the final payment is due on the latest maturing Mortgage Loan as of the Cut-off Date. Consistent with the foregoing, in instances when a Mortgage Loan is in default or default is reasonably foreseeable (within the meaning of the REMIC Provisions), the related Servicer may modify the terms of such Mortgage Loan to (1) capitalize to the principal balance of any unreimbursed Advances, unreimbursed Servicing Advances, unpaid Servicing Fees, and related amounts due to the related Servicer with respect to the related Mortgage Loan; (2) defer such amounts to a balloon payment due on the final payment date of such Mortgage Loan; (3) extend the maturity of any such Mortgage Loan, but in no instance past the date on which the final payment is due on the latest maturing Mortgage Loan as of the Cut-off Date; (4) reduce the related Mortgage Rate (provided that the Mortgage Rate of any adjustable rate Mortgage Loan may not be reduced below the Mortgage Rate of such Mortgage Loan immediately prior to the related first adjustment date); and/or (5) accept less than the outstanding principal balance as satisfaction of such Mortgage Loan; provided, however, that the related Servicer shall be obligated to obtain the consent of the Master Servicer prior to taking any such action, if so directed by the Master Servicer and provided further, that the aggregate principal balance of all mortgage loans subject to modifications (measured at the time of the modification and after giving effect to any modification) can be no more than five percent of the Aggregate Collateral Balance as of the Cut-off Date, provided, that such limit may be increased from time to time if each Rating Agency provides written confirmation that an increase in excess of that limit will not reduce the rating assigned to any Class of Certificates by such Rating Agency below the lower of the then-current rating or the rating assigned to such Certificates as of the Closing Date by such Rating Agency. To the extent a Servicer is required to obtain the consent of the Master Servicer prior to any modification, it shall submit to the Master Servicer the information contained in Exhibit GG. If the Servicer has not received a response from the Master Servicer regarding such modification within ten (10) Business Days, then the Servicer may proceed with such modification as though an affirmative response had been provided by the Master Servicer. Any such waiver, modification, postponement or indulgence granted to a Mortgagor by a Servicer in connection with its servicing of the related First Mortgage Loan shall not be considered relevant to a determination of whether such Servicer has acted consistently with the terms and standards of this Agreement, so long as in such Servicer’s determination such action is not materially adverse to the interests of the Certificateholders. Notice of any such modifications shall be provided (i) in writing, by the related Servicer to the Depositor and the Trustee or (ii) as part of the monthly report delivered by the related Servicer to the Trustee. In the event of any such arrangement that permits the deferment of principal and interest payment on any Mortgage Loan, the related Servicer shall make Advances on the related Mortgage Loan in accordance with the provisions of Section 4.01 during the scheduled period in accordance with the amortization schedule of such Mortgage Loan without modification thereof by reason of such arrangements. Each Servicer shall not be required to institute or join in litigation with respect to collection of any payment (whether under a Mortgage, Mortgage Note or otherwise or against any public or governmental authority with respect to a taking or condemnation) if it reasonably believes that enforcing the provision of the Mortgage or other instrument pursuant to which such payment is required is prohibited by applicable law.