Common use of Consequences of a Termination Event Clause in Contracts

Consequences of a Termination Event. (a) If a Backup Servicer Event of Default (as defined in Section 4.1 above) shall occur and be continuing, the Controlling Party may (or shall, at the direction of Holders evidencing not less than 25% of the outstanding principal amount of the Notes, if the Indenture Trustee is the Controlling Party), by notice given in writing to the Backup Servicer with a copy of such writing to the other parties hereto and the Rating Agencies, terminate all of the rights and obligations of the Backup Servicer under this Agreement. On or after the receipt by the Backup Servicer of such written notice, all authority, power, obligations and responsibilities of the Backup Servicer under this Agreement shall be terminated. The terminated Backup Servicer agrees to cooperate with the other parties hereto in effecting the termination of the responsibilities and rights of the terminated Backup Servicer under this Agreement.