Common use of Delivery Commitments Clause in Contracts

Delivery Commitments. (a) As provided in the Guides, the MPF Provider’s Service Center will publish Rate and Fee Schedules for Agency Loans and Closed Loans not purchased in bulk transactions. Rate and Fee Schedules for Closed Loans purchased in bulk transactions may be calculated by the MPF Provider separately for each Delivery Commitment. Rate and Fee Schedules are subject to change as provided for in the Guides. The Boston Bank PFIs will contact the Service Center to obtain and fill Delivery Commitments. The Service Center will provide reports and loan data transmissions concerning all Delivery Commitment activities of the Boston Bank PFIs to the Boston Bank at the times and in the manner provided in the FHLB Guide. The funding and purchasing of Program Loans will be processed through a PFI’s DDA Account with the Boston Bank. The Service Center shall compute any Pairoff Fees that are owed to the Boston Bank by any PFI and will report these amounts to the Boston Bank. The Boston Bank shall be responsible for collecting Pairoff Fees from its PFIs and disbursing the same to itself and its participants (including the MPF Provider), as applicable. (i) At any time when outstanding Program Loans funded or purchased pursuant to this Agreement (regardless of the issuance of any participation interests therein) are less than One Billion Dollars ($1,000,000,000), the Boston Bank shall have the right to identify Designated Delivery Commitments by giving a Liquidity Option Notice to the MPF Provider. Pursuant to the issuance of such Liquidity Option Notice, the MPF Provider hereby agrees to acquire a 100% participation in the Program Loans funded or purchased under any Delivery Commitments requested by the Boston Bank’s PFIs, such Delivery Commitments shall be issued as Designated Delivery Commitments. (ii) If outstanding Program Loans funded or purchased pursuant to this Agreement (regardless of the issuance of any participation interests therein) equal or exceed One Billion Dollars ($1,000,000,000), the MPF Provider may, at its sole discretion either accept in writing a Liquidity Option Notice from the Boston Bank and acquire a 100% participation in such Designated Delivery Commitments, or advise the Boston Bank that it elects to treat the Liquidity Option Notice as the Boston Bank’s election not to issue any Delivery Commitments for the remainder of that Business Day. In such later case, the MPF Provider shall cancel all prices published on behalf of the Boston Bank until the next Business Day. (iii) Any Liquidity Option Notice must be given to the MPF Provider as provided for in the FHLB Guide. The MPF Provider’s 100% participation in the Program Loans funded or purchased under Designated Delivery Commitments shall be pursuant to a Liquidity Option MPF Participation Agreement, which shall be in a form mutually acceptable to the parties.