Initial Custody Receipt Sample Clauses
The Initial Custody Receipt clause establishes the process by which a party acknowledges receipt of certain assets, documents, or property at the commencement of a contractual relationship. Typically, this clause outlines the specific items to be received, the timing of the receipt, and the method of documentation, such as requiring a signed acknowledgment or inventory list. Its core practical function is to provide clear evidence of what was delivered and received at the outset, thereby reducing the risk of future disputes regarding the condition or existence of the items in question.
Initial Custody Receipt. The Custodian shall review the documents delivered to it on each Delivery Date and shall deliver to MLCC as initial Registered Holder within two (2) Business Days following the Delivery Date, or within a mutually agreed upon time between the Bank and the Custodian, but prior to the Closing Date, an Initial Custody Receipt with respect to the Mortgage Loans, in which the Custodian shall certify that such Mortgage Loans are held for MLCC (as Registered Holder) and that, as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan specifically identified in such certification as not covered by such certification), (a) all documents described in Paragraphs 2(a) through 2(e) and to the extent provided in the Custodian's Mortgage Files Paragraphs 2(f) through 2(j), if applicable, of this Agreement are in its possession and (b) each Mortgage Note has been endorsed and each Assignment has been executed as provided in Paragraph 2 hereof. If the Custodian determines from such verification that any discrepancy or deficiency exists with respect to a Custodian's Mortgage File, the Custodian shall note such discrepancy on the schedule of exceptions attached to the Initial Custody Receipt as Schedule B thereto (the "Exception Report"). The Custodian shall also note on the Exception Report, with respect to each Mortgage Loan, whether a certified copy of the related Mortgage was delivered to the Custodian in lieu of the original of such Mortgage, whether a certified copy of an intervening assignment of the related Mortgage was delivered to the Custodian in lieu of the original of such assignment, and whether a preliminary title report with respect to such Mortgage Loan was delivered to the Custodian in lieu of the original policy of title insurance. On the first Business Day of each calendar month following delivery of the Initial Custody Receipt until the month in which the Final Custody Receipt is to be delivered pursuant to Subsection (b) below, the Custodian shall deliver to the Registered Holder of the Initial Custody Receipt, an updated Exception Report, revised to reflect any changes with respect to the status of the exceptions noted for the related Mortgage Loans.