Common use of Insurability Clause in Contracts

Insurability. For all loans, the Lender shall assure, and the Authority shall have determined to its satisfaction, in accordance with reasonable and prudent business practices, for each loan that: the loan is a legally valid, and binding obligation of the borrower; each such loan was made and serviced in compliance with applicable laws and regulations; and the insurance on such loan is in full force and effect. A Lender shall comply with due diligence requirements established by the U.S. Department of Education and the Authority in making, disbursing, servicing, and collecting loans insured pursuant to this contract. Failure to exercise such due diligence, with regard to any loan insured hereunder, may, without precluding other remedies, constitute grounds for avoidance by the Authority of its insurance obligation on that loan. This Lender warrants that it has and will continue to maintain itself or by contract, sufficient present capacity to exercise due diligence in the making, servicing, and collection of student loans and the maintenance of records pertaining thereto. Compliance by the Lender with the terms and conditions of this contract and applicable laws and regulations shall be deemed a condition precedent to the insurance obligation imposed upon the Authority hereunder. The Authority agrees that its insurance on any loan disbursed hereunder will remain in full force and effect if the loan becomes ineligible for federal reinsurance due to the Authority's acts or omissions in performing its obligations under this contract. If, at any time, any loan is determined to be either ineligible for reinsurance or legally unenforceable due to the Lender's acts or omissions in performing its obligations under the applicable law or this contract, then the Authority's insurance shall be voided and revoked and the Authority may require the Lender to repurchase the loan.

Insurability. For all loans, the Lender shall assure, and the Authority shall have determined to its satisfaction, in accordance with reasonable and prudent business practices, for each loan that: the loan is a legally legal, valid, and binding obligation of the borrower; each such loan was made and serviced in compliance with applicable laws and regulations; and the insurance on such loan is in full force and effect. effect A Lender shall comply with due diligence requirements established by the U.S. Department of Education and the Authority in making, disbursing, servicing, and collecting loans insured pursuant to this contract. Failure to exercise such due diligence, with regard to any loan insured hereunder, may, without precluding other remedies, constitute grounds for avoidance by the Authority of its insurance obligation on that loan. This Lender warrants that it has and will continue to maintain itself or by contract, sufficient present capacity to exercise due diligence in the making, servicing, and collection of student loans and the maintenance of records pertaining thereto. Compliance by the Lender with the terms and conditions of this contract and applicable laws and regulations shall be deemed a condition precedent to the insurance obligation imposed upon the Authority hereunder. The Authority agrees that its insurance on any loan disbursed hereunder will remain in full force and effect if the loan becomes ineligible for federal reinsurance due to the Authority's acts or omissions in performing its obligations under this contract. If, at any time, any loan is determined to be either ineligible for reinsurance or legally unenforceable due to the Lender's acts or omissions in performing its obligations under the applicable law or this contract, then the Authority's insurance shall be voided and revoked and the Authority may require the Lender to repurchase the loan.

Insurability. For all loans, the Lender Holder shall assure, and the Authority shall have determined to its satisfaction, in accordance with reasonable and prudent business practices, for each loan that: the loan was properly disbursed by the originating lender; the loan is a legally legal, valid, and binding obligation of the borrower; each such loan was made and serviced in compliance with applicable laws and regulations; and the insurance on such loan is in full force and effect. A Lender Holder shall comply with due diligence requirements established by the U.S. Department of Education and the Authority in making, disbursing, servicing, servicing and collecting loans insured pursuant to this contract. Failure to exercise such due diligence, with regard to any loan insured hereunder, may, without precluding other remedies, constitute grounds for avoidance by the Authority of its insurance obligation on that loan. This Lender Holder warrants that it has and will continue to maintain itself or by contract, sufficient present capacity to exercise due diligence in the making, servicing, servicing and collection of student loans and the maintenance of records pertaining thereto. Compliance by the Lender Holder with the terms and conditions of this contract and applicable laws and regulations shall be deemed a condition precedent to the insurance obligation imposed upon the Authority hereunder. The Authority agrees that its insurance on any loan disbursed hereunder will remain in full force and effect if the loan becomes ineligible for federal reinsurance due to the Authority's acts or omissions in performing its obligations under this contract. If, at any time, any loan is determined to be either ineligible for reinsurance or legally unenforceable due to the LenderHolder's acts or omissions in performing its obligations under the applicable law or this contract, then the Authority's insurance shall be voided and revoked and the Authority may require the Lender Holder to repurchase the loan.