Common use of Maintenance of PMI Policy Clause in Contracts

Maintenance of PMI Policy. Pursuant to Section 1.01 of the Indenture, a Mortgage Loan secured by a Mortgaged Property having an original loan-to-value ratio in excess of 80% must have a PMI Policy insuring against default of that portion of the principal amount thereof in excess of 75% of the value of the Mortgaged Property. The Servicer shall exercise its Best Efforts to keep each PMI Policy (if and so long as any is required and is permitted under applicable law) in full force and effect. The Servicer shall not be required to maintain a PMI Policy beyond the date required by applicable laws or regulations. The Servicer shall pay the premium for each PMI Policy as a Servicing Advance on a timely basis in the event that the Mortgagor does not make such payments. The Servicer, on behalf of the Issuer, shall present claims to the insurer under any applicable PMI Policy and shall take such reasonable steps as are necessary to permit recovery under such insurance policies respecting defaulted Mortgage Loans. All Insurance Proceeds received by the Servicer under such policies that are not applied to the restoration of the related Mortgaged Property or refunded to the Mortgagor shall be deposited in the Collection Account. If any property securing a defaulted Mortgage Loan is damaged and proceeds, if any, from the related hazard insurance policy are insufficient to restore the damaged property to a condition sufficient to permit recovery under any applicable PMI Policy, the Servicer shall be required to expend its own funds to restore the damaged property unless the Servicer reasonably determines (i) that such restoration will not increase the proceeds to the Issuer upon liquidation of the Mortgage Loan after reimbursement of the Servicer for its expenses and (ii) that such expenses will not be recoverable by it through Liquidation Proceeds. In the event that the

Maintenance of PMI Policy. Pursuant to Section 1.01 of the Indenture, a Mortgage Loan secured by a Mortgaged Property having an original loan-to-value ratio in excess of 80% must [must] [may] have a PMI Policy insuring against default of that portion of the principal amount thereof in excess of 75% of the value of the Mortgaged Property. The Servicer shall exercise its Best Efforts to keep each PMI Policy (if and so long as any is required and is permitted under applicable lawrequired) in full force and effect. The Servicer shall not be required to maintain a PMI Policy beyond the date required by applicable laws or regulations. The Servicer shall pay the premium for each PMI Policy as a Servicing Advance on a timely basis in the event that the Mortgagor does not make such payments. The Servicer, on behalf of the Issuer, shall present claims to the insurer under any applicable PMI Policy and shall take such reasonable steps as are necessary to permit recovery under such insurance policies respecting defaulted Mortgage Loans. All Insurance Proceeds received by the Servicer under such policies that are not applied to the restoration of the related Mortgaged Property or refunded to the Mortgagor shall be deposited in the Collection Account. If any property securing a defaulted Mortgage Loan is damaged and proceeds, if any, from the related hazard insurance policy are insufficient to restore the damaged property to a condition sufficient to permit recovery under any applicable PMI Policy, the Servicer shall be required to expend its own funds to restore the damaged property unless the Servicer reasonably determines (i) that such restoration will not increase the proceeds to the Issuer upon liquidation of the Mortgage Loan after reimbursement of the Servicer for its expenses and (ii) that such expenses will not be recoverable by it through Liquidation Proceeds. In the event that theliquidation

Maintenance of PMI Policy. Pursuant With respect to Section 1.01 of the Indenture, a any Mortgage Loan secured by a Mortgaged Property having an original loan-to-value ratio Note for which there is in excess of 80% must have effect a PMI Policy insuring against default of that portion of Policy, the principal amount thereof in excess of 75% of the value of the Mortgaged Property. The Servicer shall exercise its Best Efforts to keep each such PMI Policy (if and so long as any is required and is permitted under applicable lawrequired) in full force and effect. The Servicer shall not be required to maintain a PMI Policy beyond the date required by applicable laws or regulations. The Servicer shall pay the premium for each PMI Policy as a Servicing Advance on a timely basis in the event that the Mortgagor does not make such payments. The Servicer, on behalf of the IssuerOwner, shall present claims to the insurer under any applicable PMI Policy and shall take such reasonable steps as are necessary to permit recovery under such insurance policies respecting defaulted Mortgage LoansNotes. All Insurance Proceeds received by the Servicer under such policies that are not applied to the restoration of the related Mortgaged Property or refunded to the Mortgagor shall be deposited in the Collection Account. If any property securing a defaulted Mortgage Loan Note is damaged and proceeds, if any, from the related hazard insurance policy are insufficient to restore the damaged property to a condition sufficient to permit recovery under any applicable PMI Policy, the Servicer shall be required to expend its own funds to restore the damaged property unless the Servicer reasonably determines (i) that such restoration will not increase the proceeds to the Issuer Owner upon liquidation of the Mortgage Loan Note after reimbursement of the Servicer for its expenses and (ii) that such expenses will not be recoverable by it through Liquidation Proceeds. In the event that thethe Servicer elects to restore the damaged property and the cost of restoration exceeds the amount recovered by it through Liquidation Proceeds, the Owner shall reimburse the Servicer for the difference between the amount expended by the Servicer and the amount recovered through Liquidation Proceeds.

Maintenance of PMI Policy. Pursuant to Section 1.01 of the Indenture, a Mortgage Loan Note secured by a Mortgaged Property having an original loan-to-value ratio in excess of 80% must have a PMI Policy insuring against default of that portion of the principal amount thereof in excess of 75% of the value of the Mortgaged Property. The Servicer shall exercise its Best Efforts to keep each PMI Policy (if and so long as any is required and is permitted under applicable lawrequired) in full force and effect. The Servicer shall not be required to maintain a PMI Policy beyond the date required by applicable laws or regulations. The Servicer shall pay the premium for each PMI Policy as a Servicing Advance on a timely basis in the event that the Mortgagor does not make such payments. The Servicer, on behalf of the Issuer, shall present claims to the insurer under any applicable PMI Policy and shall take such reasonable steps as are necessary to permit recovery under such insurance policies respecting defaulted Mortgage LoansNotes. All Insurance Proceeds received by the Servicer under such policies that are not applied to the restoration of the related Mortgaged Property or refunded to the Mortgagor shall be deposited in the Collection Account. If any property securing a defaulted Mortgage Loan Note is damaged and proceeds, if any, from the related hazard insurance policy are insufficient to restore the damaged property to a condition sufficient to permit recovery under any applicable PMI Policy, the Servicer shall be required to expend its own funds to restore the damaged property unless the Servicer reasonably determines (i) that such restoration will not increase the proceeds to the Issuer upon liquidation of the Mortgage Loan Note after reimbursement of the Servicer for its expenses and (ii) that such expenses will not be recoverable by it through Liquidation Proceeds. In the event that thethe Servicer elects to restore the damaged property and the cost of restoration exceeds the amount recovered by it through Liquidation Proceeds, the Issuer shall reimburse the Servicer for the difference between the amount expended by the Servicer and the amount recovered through Liquidation Proceeds.