Common use of Contingency Plans Clause in Contracts

Contingency Plans. The Servicer represents and warrants that it has in place a contingency plan that will enable it to (i) materially perform its servicing obligations within 48 hours in the event its primary location is rendered inoperative as a result of a natural or other disaster or emergency, and once the Servicer relocates to its backup site, it shall make arrangements to provide continued service as stated in this Agreement. The Servicer covenants and agrees to (i) test such contingency plan at least once annually and, upon request of Owner, provide the results of such test to the Owner, and (ii) upon request of Owner, provide the Owner with copies of its operating procedures in the event that such contingency plan is put into effect. If Owner determines in its reasonable discretion, that such contingency plan is inadequate, the Owner shall have the right to make reasonable recommendations consistent with those required by its regulators, and the Servicer shall take commercially reasonable efforts to implement such recommendations.