Common use of Defects in Collateral Documentation; Loss of Collateral Value Clause in Contracts

Defects in Collateral Documentation; Loss of Collateral Value. A Pledged Mortgage Loan which has been delivered to the Agent under this Pledge and Security Agreement in accordance with Section 4.01 or Section 4.02 hereof shall be and remain Collateral which is subject to the lien and security interest granted to the Agent under Section 2 hereof until such Pledged Mortgage Loan is sold to an Investor in accordance with Sections 10.02 and 10.03 hereof (in which case the proceeds thereof, including, without limitation, any Related Mortgage-backed Security, shall constitute Collateral) or released pursuant to Section 10.04 hereof or until this Pledge and Security Agreement terminates in accordance with Section 19 hereof, notwithstanding (a) any defect in any document delivered to the Agent pursuant to Section 4.01, 4.02, or 4.03 hereof, (b) the failure of such Pledged Mortgage Loan to have or continue to have Collateral Value, as applicable, (c) the failure of the Borrower to make timely delivery of any document required to be delivered to the Agent under Section 4.02 hereof, (d) the failure of the Borrower to make timely delivery of any document required to be delivered to the Agent under Section 4.03 hereof, or (e) any other fact, circumstance, condition or event whatsoever. For purposes of the preceding sentence, the funding of the origination or purchase of a Pledged Mortgage Loan from the proceeds of Loans or Swing-Line Loans and/or the assignment of Collateral Value to such Pledged Mortgage Loan by the Agent shall be deemed to be conclusive evidence of the delivery of such Pledged Mortgage Loan under Section 4.01 hereof, notwithstanding any subsequent determination by the Agent that the documentation delivered for such Pledged Mortgage Loan was incomplete or defective in any respect or that such Pledged Mortgage Loan should not have been assigned Collateral Value; provided that, in the exercise of its reasonable discretion, the Agent may reduce the Collateral Value to zero for any Pledged Mortgage Loan due to any material defect in any deed, power of attorney or assignment of mortgage related to such Pledged Mortgage Loan as to which the Agent has given notice to the Borrower of such material defect, if such material defect is not corrected within 3 Business Days after such notice from the Agent.

Defects in Collateral Documentation; Loss of Collateral Value. A Pledged Mortgage Loan which has been delivered to the Agent under this Pledge and Security Agreement in accordance with Section 4.01 or Section 4.02 hereof shall be and remain Collateral which is subject to the lien and security interest granted to the Agent under Section 2 hereof until such Pledged Mortgage Loan is sold to an Investor in accordance with Sections 10.02 and 10.03 hereof (in which case the proceeds thereof, including, without limitation, any Related Mortgage-backed Security, shall constitute Collateral) or released pursuant to Section 10.04 hereof or until this Pledge and Security Agreement terminates in accordance with Section 19 hereof, notwithstanding (a) any defect in any document delivered to the Agent pursuant to Section 4.01, 4.02, or 4.03 hereof, (b) the failure of such Pledged Mortgage Loan to have or continue to have Warehousing Collateral Value, as applicable, (c) the failure of the Borrower Company to make timely delivery of any document required to be delivered to the Agent under Section 4.02 hereof, (d) the failure of the Borrower Company to make timely delivery of any document required to be delivered to the Agent under Section 4.03 hereof, or (e) any other fact, circumstance, condition or event whatsoever. For purposes of the preceding sentence, the funding of the origination or purchase of a Pledged Mortgage Loan from the proceeds of Loans or Swing-Line Loans a Warehousing Loan and/or the assignment of Warehousing Collateral Value to such Pledged Mortgage Loan by the Agent shall be deemed to be conclusive evidence of the delivery of such Pledged Mortgage Loan under Section 4.01 hereof, notwithstanding any subsequent determination by the Agent that the documentation delivered for such Pledged Mortgage Loan was incomplete or defective in any respect or that such Pledged Mortgage Loan should not have been assigned Warehousing Collateral Value; provided that, in the exercise of its reasonable discretion, the Agent may reduce the Collateral Value to zero for any Pledged Mortgage Loan due to any material defect in any deed, power of attorney or assignment of mortgage related to such Pledged Mortgage Loan as to which the Agent has given notice to the Borrower of such material defect, if such material defect is not corrected within 3 Business Days after such notice from the Agent.

Defects in Collateral Documentation; Loss of Collateral Value. A Pledged Mortgage Loan which has been delivered to the Agent under this Pledge and Security Agreement in accordance with Section 4.01 or Section 4.02 hereof shall be and remain Collateral which is subject to the lien and security interest granted to the Agent under Section 2 hereof until such Pledged Mortgage Loan is sold to an Investor in accordance with Sections 10.02 and 10.03 hereof (in which case the proceeds thereof, including, without limitation, any Related Mortgage-backed Security, shall constitute Collateral) or released pursuant to Section 10.04 hereof or until this Pledge and Security Agreement terminates in accordance with Section 19 21 hereof, notwithstanding (a) any defect in any document delivered to the Agent pursuant to Section 4.01, 4.02, or 4.03 hereof, (b) the failure of such Pledged Mortgage Loan to have or continue to have Warehousing Collateral Value, as applicable, (c) the failure of the Borrower Company to make timely delivery of any document required to be delivered to the Agent under Section 4.02 hereof, (d) the failure of the Borrower Company to make timely delivery of any document required to be delivered to the Agent under Section 4.03 hereof, or (e) any other fact, circumstance, condition or event whatsoever. For purposes of the preceding sentence, the funding of the origination or purchase of a Pledged Mortgage Loan from the proceeds of Loans or Swing-Line Loans a Warehousing Loan and/or the assignment of Warehousing Collateral Value to such Pledged Mortgage Loan by the Agent shall be deemed to be conclusive evidence of the delivery of such Pledged Mortgage Loan under Section 4.01 hereof, notwithstanding any subsequent determination by the Agent that the documentation delivered for such Pledged Mortgage Loan was incomplete or defective in any respect or that such Pledged Mortgage Loan should not have been assigned Collateral Value; provided that, in the exercise of its reasonable discretion, the Agent may reduce the Collateral Value to zero for any Pledged Mortgage Loan due to any material defect in any deed, power of attorney or assignment of mortgage related to such Pledged Mortgage Loan as to which the Agent has given notice to the Borrower of such material defect, if such material defect is not corrected within 3 Business Days after such notice from the Agent.under

Defects in Collateral Documentation; Loss of Collateral Value. A Pledged Mortgage Loan which has been delivered to the Agent Bank under this Pledge and Security Agreement in accordance with Section 4.01 or Section 4.02 hereof shall be and remain Collateral which is subject to the lien and security interest granted to the Agent Bank under Section 2 hereof until such Pledged Mortgage Loan is sold to an Investor in accordance with Sections 10.02 and 10.03 hereof (in which case the proceeds thereof, including, without limitation, any Related Mortgage-backed Security, shall constitute Collateral) or released pursuant to Section 10.04 hereof or until this Pledge and Security Agreement terminates in accordance with Section 19 hereof, notwithstanding (a) any defect in any document delivered to the Agent Bank pursuant to Section 4.01, 4.02, or 4.03 4.01 hereof, (b) the failure of such Pledged Mortgage Loan to have be or continue to have Collateral Value, as applicableremain a Pledged Approved Mortgage Loan, (c) the failure of such Pledged Mortgage Loan to have or to retain Collateral Value, (d) the Borrower failure of the Pledgor to make timely delivery of any document required to be delivered to the Agent Bank under Section 4.02 hereof, (d) the failure of the Borrower to make timely delivery of any document required to be delivered to the Agent under Section 4.03 hereof, or (e) any other fact, circumstance, condition or event whatsoever. For purposes of the preceding sentence, the funding financing or refinancing of the origination or purchase repurchase of a Pledged Mortgage Loan from the proceeds of Loans or Swing-Line Loans Advances and/or the assignment of Collateral Value to such Pledged Mortgage Loan by the Agent Bank shall be deemed to be conclusive evidence of the delivery of such Pledged Mortgage Loan under Section 4.01 hereof, notwithstanding any subsequent determination by the Agent Bank that the documentation delivered for such Pledged Mortgage Loan was incomplete or defective in any respect or that such Pledged Mortgage Loan should not have been assigned Collateral Value; provided that, in the exercise of its reasonable discretion, the Agent may reduce the Collateral Value to zero for any Pledged Mortgage Loan due to any material defect in any deed, power of attorney or assignment of mortgage related to such Pledged Mortgage Loan as to which the Agent has given notice to the Borrower of such material defect, if such material defect is not corrected within 3 Business Days after such notice from the Agent.