Common use of Discovery of Fraud Clause in Contracts

Discovery of Fraud. In the event that the PFI discovers or has reasonable grounds to suspect that fraud was committed in connection with the origination of a Mortgage, the PFI shall immediately notify FHLB in writing of such discovery. Upon FHLB’s receipt of such notice or FHLB’s independent discovery or reasonable suspicion of fraud in connection with the origination of a Mortgage, FHLB may, in its sole and absolute discretion, report such fraud to investors, agencies, mortgage industry clearing houses and any other third parties FHLB believes have an interest in the fraud.

Discovery of Fraud. In the event that the PFI Seller discovers or has reasonable grounds to suspect that fraud was committed in connection with the origination of a Mortgage, the PFI Seller shall immediately notify FHLB FHLBI in writing of such discovery. Upon FHLBFHLBI’s receipt of such notice notice, or FHLBFHLBI’s independent discovery or reasonable suspicion of fraud in connection with the origination of a Mortgage, FHLB FHLBI may, in its sole and absolute discretion, report such fraud to investors, agencies, mortgage industry clearing houses houses, and any other third parties FHLB FHLBI believes have an interest in the fraud.