Common use of Inspections by Certificate Insurer; Errors and Omissions Insurance Clause in Contracts

Inspections by Certificate Insurer; Errors and Omissions Insurance. (a) At any reasonable time and from time to time upon reasonable notice, the Certificate Insurer, the Trustee, the Oversight Agent or any agents or representatives thereof may inspect the Servicer's servicing operations and discuss the servicing operations of the Servicer with any of its officers or directors. The costs and expenses incurred by the Servicer or its agents or representatives in connection with any such examinations or discussions shall be paid by the Servicer. (b) The Servicer agrees to maintain errors and omissions coverage and a fidelity bond, each at least to the extent generally maintained by prudent mortgage loan servicers having servicing portfolios of a similar size. Upon request of the Oversight Agent, the Servicer shall deliver to the Oversight Agent a certified true and correct copy of such fidelity bond and errors and omissions policy to the Oversight Agent. (c) For each year this Agreement is in effect, the Servicer shall submit to the Oversight Agent, (i) within 120 days of the end of each calendar year, a copy of the Servicer's annual audited financial statements and (ii) within 60 days of the end of each calendar quarter, the Servicer's quarterly unaudited financial statements. Such financial statements shall include a balance sheet, income statement and statement of retained earnings.

Inspections by Certificate Insurer; Errors and Omissions Insurance. (a) At any reasonable time and from time to time upon reasonable notice, the Certificate Insurer, the Trustee, the Oversight Agent Master Servicer or any agents or representatives thereof may inspect the Servicer's servicing operations and discuss the servicing operations of the Servicer with any of its officers or directors. The costs and expenses incurred by the Servicer or its agents or representatives in connection with any such examinations or discussions shall be paid by the Servicer. (b) The Servicer agrees to maintain errors and omissions coverage and a fidelity bond, each at least to the extent generally maintained by prudent mortgage loan servicers having servicing portfolios of a similar size. Upon request of the Oversight AgentMaster Servicer, the Servicer shall deliver to the Oversight Agent Master Servicer a certified true and correct copy of such fidelity bond and errors and omissions policy to the Oversight AgentMaster Servicer. (c) For each year this Agreement is in effect, the Servicer shall submit to the Oversight AgentMaster Servicer, (i) within 120 days of the end of each calendar year, a copy of the Servicer's annual audited financial statements and (ii) within 60 days of the end of each calendar quarter, the Servicer's quarterly unaudited financial statements. Such financial statements shall include a balance sheet, income statement and statement of retained earnings.