Limitation on Waiver of Prepayment Charges and Other Ancillary Charges. If the Issue Supplement provides for any prepayment charge collected on a Mortgage Loan to be passed through to Holders, the Direct Servicer will not waive any portion of a prepayment charge that is to be passed through to Holders unless (i) the Mortgage Loan is in default, and the Direct Servicer determines that the waiver makes it more likely that there will be a recovery of the remaining principal and interest payments due on the Mortgage Loan, or (ii) (A) the enforceability of the prepayment charge is limited (1) by court order, (2) by bankruptcy, insolvency, moratorium, receivership, or other similar law relating to creditors’ rights generally or (3) due to acceleration of the Mortgage Loan’s maturity in connection with a foreclosure or other involuntary payment, or (B) the Direct Servicer reasonably believes that enforceability is otherwise limited or prohibited by applicable law. The Direct Servicer may waive other ancillary service charges if permitted by the Servicing Contract.
Appears in 7 contracts
Samples: Second Amended and Restated 2016 Single Family Master Trust Agreement, Single Family Master Trust Agreement, Second Amended and Restated 2007 Single Family Master Trust Agreement
