Common use of Mandatory Prepayments or Pledge Clause in Contracts

Mandatory Prepayments or Pledge. Pursuant to the Custodial Agreement, on each Business Day on which there is a sale, release or other change in the Mortgage Loans held by the Custodian or REO Properties owned by an REO Subsidiary, the Custodian shall deliver to the Lender and the Borrower a Custodian Asset Transmission and an Exception Report. On the fifth Business Day of each calendar month, the Borrower shall cause the Servicer to deliver to the Lender the Servicing Transmission. No later than 5:00 p.m. eastern time on the Business Day preceding each Payment Date the Lender shall deliver to the Borrower a Borrowing Base Certificate, the calculation in such certificate to be based on (a) the principal balance and appraised value of the Mortgage Loans as of the last day of the preceding calendar month and (b) the appraised value of the REO Properties as of the last day of the preceding calendar month. Such information shall be ascertained from the Custodian Asset Transmission, the Exception Report and the Servicing Transmission. In the event that such Borrowing Base Certificate indicates that the aggregate outstanding principal amount of Advances exceeds the Borrowing Base (a “Borrowing Base Deficiency”), the Borrower or Guarantor shall on the related Payment Date, either prepay the Advances in part or in whole or pledge additional Eligible Assets (which Collateral shall be in all respects acceptable to the Lender) to the Lender, such that after giving effect to such prepayment or pledge the aggregate outstanding principal amount of the Advances does not exceed the Borrowing Base.

Mandatory Prepayments or Pledge. Pursuant to the Custodial Agreement, on On each Business Day on which there is a sale, release or other change in the Mortgage Loans held by the Custodian or REO Properties owned by an REO SubsidiaryDay, the Custodian shall deliver to the Lender and the Borrower a the Custodian Asset Transmission and an Exception ReportLoan Data File. On the fifth Business Day of each calendar month, the Borrower The Custodian shall cause the Servicer to also deliver to the Lender the Servicing Transmission. No later than 5:00 p.m. eastern time on the Business Day preceding each Payment Date the Lender shall deliver to and the Borrower a Borrowing Base CertificateCertificate in the form attached hereto as Exhibit H, the calculation in such certificate to be based on (a) the delinquency status and principal balance and appraised value of the Eligible Mortgage Loans as of the later of the funding date balance or the last calendar day of the preceding calendar month and (b) the appraised value of the REO Properties as of the last day of the preceding calendar prior month). Such information shall be ascertained from the Custodian Asset TransmissionServicing Loan Data File and each Banking Loan Data File, which shall be delivered by the Exception Report Borrower in accordance with Sections 7.19 and 7.20 and shall include all Mortgage Loans which were funded on or prior to the Servicing Transmissionlast calendar day of the previous month. In the event that such Borrowing Base Certificate indicates that or if at any time the aggregate outstanding principal amount of Advances exceeds the Borrowing Base (a “"Borrowing Base Deficiency”"), as determined by the Custodian and notified to the Lender and the Borrower on any Business Day, the Borrower or Guarantor shall on the related Payment Dateno later than one Business Day after receipt of such written notice, either prepay the Advances in part or in whole or pledge additional Eligible Assets Mortgage Loans (which Collateral shall be in all respects acceptable to the Lender) to the Lender, such that after giving effect to such prepayment or pledge the aggregate outstanding principal amount of the Advances does not exceed the Borrowing Base. Notwithstanding the foregoing, the Lender shall have the right at any time to calculate the Borrowing Base based upon any information delivered to the Lender by the Borrower or the Custodian and reasonably determine whether there is a Borrowing Base Deficiency. The Lender's calculation shall be deemed correct absent manifest error; provided, however, (i) if the difference in the calculation determined by the Lender and the Custodian exceeds $1,000,000, the Borrower shall deliver such difference within two Business Days if not otherwise cured or (ii) if the difference in the calculation determined by the Lender and the Custodian is less than or equal to $1,000,000, the parties shall use best efforts to cure such difference within five Business Days, at the end of which time, the Borrower shall deliver such difference, if any, to the Lender. Notwithstanding any other provision of this Loan Agreement or the Custodial Agreement, the Lender shall calculate the Borrowing Base Deficiency until such time that the Lender transfers to the Custodian the right to determine the Borrowing Base Deficiency. The Lender shall determine the Borrowing Base in accordance with the provisions of this Loan Agreement and shall deliver such calculation to the Borrower in the same manner as the Custodian.

Mandatory Prepayments or Pledge. Pursuant to the Custodial Agreement, on each Business Day on which there is a sale, release or other change in the Mortgage Loans held by the Custodian or REO Properties owned by an REO Subsidiary, the Custodian shall deliver to the Lender and the Borrower a Custodian Asset ‘Transmission and an Exception Report. On the fifth Business Day of each calendar month, the Borrower shall cause the Servicer to deliver to the Lender the Servicing Transmission. No later than 5:00 p.m. eastern time on the Business Day preceding each Payment Date the Lender shall deliver to the Borrower a Borrowing Base Certificate, the calculation in such certificate to be based on (a) the principal balance and appraised value of the Mortgage Loans as of the last day of the preceding calendar month and (b) the appraised value of the REO Properties as of the last day of the preceding calendar month. Such information shall be ascertained from the Custodian Asset Transmission, the Exception Report and the Servicing Transmission. In the event that such Borrowing Base Certificate indicates that the aggregate outstanding principal amount of Advances exceeds the Borrowing Base (a “Borrowing Base Deficiency”), the Borrower or Guarantor shall on the related Payment Date, either prepay the Advances in part or in whole or pledge additional Eligible Assets (which Collateral shall be in all respects acceptable to the Lender) to the Lender, such that after giving effect to such prepayment or pledge the aggregate outstanding principal amount of the Advances does not exceed the Borrowing Base.

Mandatory Prepayments or Pledge. Pursuant to the Custodial Agreement, on On each Business Day Funding Date or other date on which there is a sale, release or other change in the Contracts or Mortgage Loans held by the Custodian or REO Properties owned by an REO SubsidiaryCustodian, the Custodian shall deliver to the Lender and the Borrower a the Custodian Asset Transmission and an Exception ReportLoan Transmission. On the fifth At least three (3) Business Day of Days prior to each calendar monthPayment Date, the Borrower shall cause the Servicer to deliver to the Lender the Servicing Transmission. No later than 5:00 p.m. eastern time on the Business Day preceding each Payment Date the Lender shall deliver to the Borrower a Borrowing Base CertificateCertificate in the form attached hereto as Exhibit H, the calculation in such certificate to be based on (a) the delinquency status and principal balance and appraised value of the Mortgage Loans Eligible Assets as of the last calendar day of the preceding calendar month and (b) the appraised value of the REO Properties as of the last day of the preceding calendar prior month. Such information shall be ascertained from the Custodian Asset Servicing Transmission, a copy of which shall be delivered or caused to be delivered by the Exception Report Borrower in accordance with Section 7.20 and shall include all Contracts and Mortgage Loans which were funded on or prior to the Servicing Transmissionlast calendar day of the previous month. The Lender shall promptly notify the Borrower of any material disagreement in the calculation of the Borrowing Base. In the event that such Borrowing Base Certificate indicates that or if at any time the aggregate outstanding principal amount of Advances exceeds the Borrowing Base (a “Borrowing Base Deficiency”), as determined by the Lender and notified to the Borrower or Guarantor on any Business Day, the Borrower shall on the related Payment Dateno later than one Business Day after receipt of such notice, either prepay the Advances in part or in whole or pledge additional Eligible Assets (which Collateral shall be in all respects acceptable to the Lender) to the Lender, such that after giving effect to such prepayment or pledge the aggregate outstanding principal amount of the Advances does not exceed the Borrowing Base.