Common use of Mandatory Repurchases Clause in Contracts

Mandatory Repurchases. (a) CAC and Funding shall inform the other party promptly in writing, upon the discovery of any breach of CAC’s representations and warranties pursuant to Sections 4.1(h), (i), (j), (k), (l), (m), (n), (o), (q), (bb) and (cc) hereof as of the time such representation, warranty or covenant was made but without regard to any limitation set forth therein concerning the knowledge of CAC as to the facts stated therein (which in the case of CAC can be provided in the applicable Servicer Certificate). (b) Unless any breach of a representation, warranty or covenant as described in Section 6.1(a) above shall have been cured by the last day of the first full Collection Period following the discovery thereof, CAC shall have the obligation to make a payment to Funding of the applicable Purchase Amount in respect of all Loans and Contracts with respect to which there is a breach of any such representation, warranty or covenant, which are materially and adversely affected by such event and which materially and adversely affect the interests of Funding therein as of such last day (such Loans and Contracts, the “Ineligible Loans”). (c) CAC hereby acknowledges that, concurrently with the transfers under this Agreement, the Ineligible Loans are being (or will be) transferred to the Trust under the Sale and Servicing Agreement and Funding may be required to repurchase from the Trust such Ineligible Loans in accordance with the terms of the Sale and Servicing Agreement. CAC hereby agrees to repurchase directly from the Trust such Ineligible Loans by making a payment to the Collection Account of the applicable Purchase Amount in accordance with the Sale and Servicing Agreement, if it is requested by the Trust Collateral Agent to do so. Funding hereby acknowledges that any repurchase of Ineligible Loans under this Article VI, whether from Funding or directly from the Trust, shall be the sole remedy of Funding in respect to the Ineligible Loans. (d) Each Dealer Loan, Dealer Loan Contract, Purchased Loan or Purchased Loan Contract which is subject to a payment in accordance with Section 6.1(b) or (c) above shall, upon payment in full of the related Purchase Amount, be reconveyed to CAC and shall no longer constitute Conveyed Property. After payment in full of the related Purchase Amount and upon the request of CAC, Funding shall execute and deliver to CAC any assignments, termination statements and any other releases and instruments as CAC may reasonably request in order to effect and evidence the release of Funding’s security interest on such Dealer Loan, Dealer Loan Contract, Purchased Loan or Purchased Loan Contract.

Mandatory Repurchases. (a) CAC If at any time there has occurred a Purchased Asset Issue with respect to any Purchased Asset, then the MarketAsset Value thereof shall automatically be reduced to zero and Funding shall inform Buyer may, at its option, by notice to Sellers (as such notice is more particularly set forth below, a “Repurchase Notice”), require Sellers to repurchase such asset or Sellers may repurchase such asset without the other party promptly in writing, upon the discovery payment of any breach Exit Fees. In the case of CACa repurchase, the Sellers, shall, at the Buyer’s representations and warranties pursuant direction, be required to Sections 4.1(h)repurchase the affected Purchased Asset as soon as is practicable but, in any case, not more than (i), (j), (k), (l), (m), (n), (o), (q), (bbx) and (cc) hereof as of the time such representation, warranty or covenant was made but without regard to any limitation set forth therein concerning the knowledge of CAC as to the facts stated therein (which in the case of CAC can be provided a Purchased Asset Issue with respect to Non-QM Mortgage Loans, two (2) Business Days and (y) in the applicable Servicer Certificate)case of any other Purchased Asset Issue, three (3) Business Days, in each case, after Buyer has delivered such Repurchase Notice to Sellers. The Sellers shall be required to notify the Buyer as soon as is practicable after obtaining knowledge of any fact that could be the basis for any Purchased Asset Issue, but, in any case, not more than two (2) Business Days after obtaining knowledge thereof. In such event, the price paid by the Sellers for such Purchased Asset shall be equal to the Repurchase Price. (b) Unless Buyer’s election, in its sole and absolute discretion, not to send a Repurchase Notice at any breach of time a representation, warranty Purchased Asset is no longer an Eligible Mortgage Loan shall not in any way limit or covenant as described in Section 6.1(a) above shall have been cured by the last day of the first full Collection Period following the discovery thereof, CAC shall have the obligation impair its right to make send a payment to Funding of the applicable Purchase Amount in respect of all Loans and Contracts with respect to which there is Repurchase Notice at a breach of any such representation, warranty or covenant, which are materially and adversely affected by such event and which materially and adversely affect the interests of Funding therein as of such last day (such Loans and Contracts, the “Ineligible Loans”)later time. (c) CAC hereby acknowledges that, concurrently The fact that Buyer has conducted or has failed to conduct any partial or complete due diligence investigation in connection with the transfers its purchase of any Purchased Asset shall not affect Buyer’s right to demand repurchase or any other remedy as provided under this Agreement, the Ineligible Loans are being (or will be) transferred to the Trust under the Sale and Servicing Agreement and Funding may be required to repurchase from the Trust such Ineligible Loans in accordance with the terms of the Sale and Servicing Agreement. CAC hereby agrees to repurchase directly from the Trust such Ineligible Loans by making a payment to the Collection Account of the applicable Purchase Amount in accordance with the Sale and Servicing Agreement, if it is requested by the Trust Collateral Agent to do so. Funding hereby acknowledges that any repurchase of Ineligible Loans under this Article VI, whether from Funding or directly from the Trust, shall be the sole remedy of Funding in respect to the Ineligible Loans. (d) Each Dealer Loan, Dealer Loan Contract, Purchased Loan or Purchased Loan Contract which is subject Any cash transferred to a payment in accordance with Buyer pursuant to Section 6.1(b) or (c4(a) above shall, upon payment in full shall be credited to the Repurchase Price of the related Purchase Amount, be reconveyed to CAC and shall no longer constitute Conveyed Property. After payment in full of the related Purchase Amount and upon the request of CAC, Funding shall execute and deliver to CAC any assignments, termination statements and any other releases and instruments as CAC may reasonably request in order to effect and evidence the release of Funding’s security interest on such Dealer Loan, Dealer Loan Contract, Purchased Loan or Purchased Loan ContractTransactions.

Mandatory Repurchases. (a) CAC If at any time there has occurred a Purchased Asset Issue with respect to any Purchased Asset, then the Market Value thereof shall automatically be reduced to zero and Funding shall inform Buyer may, at its option, by notice to Sellers (as such notice is more particularly set forth below, a “Repurchase Notice”), require Sellers to repurchase such asset or Sellers may repurchase such asset without the other party promptly in writing, upon the discovery payment of any breach of CAC’s representations and warranties pursuant to Sections 4.1(h), (i), (j), (k), (l), (m), (n), (o), (q), (bb) and (cc) hereof as of the time such representation, warranty or covenant was made but without regard to any limitation set forth therein concerning the knowledge of CAC as to the facts stated therein (which in Exit Fees. In the case of CAC can a repurchase, the Sellers, shall, at the Buyer’s direction, be provided required to repurchase the affected Purchased Asset as soon as is practicable but, in any case, not more than two (2) Business Days after Buyer has delivered such Repurchase Notice to Sellers. The Sellers shall be required to notify the applicable Servicer Certificate)Buyer as soon as is practicable after obtaining knowledge of any fact that could be the basis for any Purchased Asset Issue, but, in any case, not more than two (2) Business Days after obtaining knowledge thereof. In such event, the price paid by the Sellers for such Purchased Asset shall be equal to the Repurchase Price. (b) Unless Buyer’s election, in its sole and absolute discretion, not to send a Repurchase Notice at any breach of time a representation, warranty Purchased Asset is no longer an Eligible Mortgage Loan shall not in any way limit or covenant as described in Section 6.1(a) above shall have been cured by the last day of the first full Collection Period following the discovery thereof, CAC shall have the obligation impair its right to make send a payment to Funding of the applicable Purchase Amount in respect of all Loans and Contracts with respect to which there is Repurchase Notice at a breach of any such representation, warranty or covenant, which are materially and adversely affected by such event and which materially and adversely affect the interests of Funding therein as of such last day (such Loans and Contracts, the “Ineligible Loans”)later time. (c) CAC hereby acknowledges that, concurrently The fact that Buyer has conducted or has failed to conduct any partial or complete due diligence investigation in connection with the transfers its purchase of any Purchased Asset shall not affect Buyer’s right to demand repurchase or any other remedy as provided under this Agreement, the Ineligible Loans are being (or will be) transferred to the Trust under the Sale and Servicing Agreement and Funding may be required to repurchase from the Trust such Ineligible Loans in accordance with the terms of the Sale and Servicing Agreement. CAC hereby agrees to repurchase directly from the Trust such Ineligible Loans by making a payment to the Collection Account of the applicable Purchase Amount in accordance with the Sale and Servicing Agreement, if it is requested by the Trust Collateral Agent to do so. Funding hereby acknowledges that any repurchase of Ineligible Loans under this Article VI, whether from Funding or directly from the Trust, shall be the sole remedy of Funding in respect to the Ineligible Loans. (d) Each Dealer Loan, Dealer Loan Contract, Purchased Loan or Purchased Loan Contract which is subject Any cash transferred to a payment in accordance with Buyer pursuant to Section 6.1(b) or (c4(a) above shall, upon payment in full shall be credited to the Repurchase Price of the related Purchase Amount, be reconveyed to CAC and shall no longer constitute Conveyed Property. After payment in full of the related Purchase Amount and upon the request of CAC, Funding shall execute and deliver to CAC any assignments, termination statements and any other releases and instruments as CAC may reasonably request in order to effect and evidence the release of Funding’s security interest on such Dealer Loan, Dealer Loan Contract, Purchased Loan or Purchased Loan ContractTransactions.

Mandatory Repurchases. (a) CAC If at any time there has occurred a Purchased Asset Issue with respect to any Purchased Asset, then the Asset Value thereof shall automatically be reduced to zero and Funding shall inform Buyer may, at its option, by notice to Sellers (as such notice is more particularly set forth below, a “Repurchase Notice”), require Sellers to repurchase such asset or Sellers may repurchase such asset without the other party promptly in writing, upon the discovery payment of any breach Exit Fees. In the case of CACa repurchase, the Sellers, shall, at the Buyer’s representations and warranties pursuant direction, be required to Sections 4.1(h)repurchase the affected Purchased Asset as soon as is practicable but, in any case, not more than (i), (j), (k), (l), (m), (n), (o), (q), (bbx) and (cc) hereof as of the time such representation, warranty or covenant was made but without regard to any limitation set forth therein concerning the knowledge of CAC as to the facts stated therein (which in the case of CAC can be provided a Purchased Asset Issue with respect to Non-QM Mortgage Loans, two (2) Business Days and (y) in the applicable Servicer Certificate)case of any other Purchased Asset Issue, three (3) Business Days, in each case, after Buyer has delivered such Repurchase Notice to Sellers. The Sellers shall be required to notify the Buyer as soon as is practicable after obtaining knowledge of any fact that could be the basis for any Purchased Asset Issue, but, in any case, not more than two (2) Business Days after obtaining knowledge thereof. In such event, the price paid by the Sellers for such Purchased Asset shall be equal to the Repurchase Price. (b) Unless Buyer’s election, in its sole and absolute discretion, not to send a Repurchase Notice at any breach of time a representation, warranty Purchased Asset is no longer an Eligible Mortgage Loan shall not in any way limit or covenant as described in Section 6.1(a) above shall have been cured by the last day of the first full Collection Period following the discovery thereof, CAC shall have the obligation impair its right to make send a payment to Funding of the applicable Purchase Amount in respect of all Loans and Contracts with respect to which there is Repurchase Notice at a breach of any such representation, warranty or covenant, which are materially and adversely affected by such event and which materially and adversely affect the interests of Funding therein as of such last day (such Loans and Contracts, the “Ineligible Loans”)later time. (c) CAC hereby acknowledges that, concurrently The fact that Buyer has conducted or has failed to conduct any partial or complete due diligence investigation in connection with the transfers its purchase of any Purchased Asset shall not affect Buyer’s right to demand repurchase or any other remedy as provided under this Agreement, the Ineligible Loans are being (or will be) transferred to the Trust under the Sale and Servicing Agreement and Funding may be required to repurchase from the Trust such Ineligible Loans in accordance with the terms of the Sale and Servicing Agreement. CAC hereby agrees to repurchase directly from the Trust such Ineligible Loans by making a payment to the Collection Account of the applicable Purchase Amount in accordance with the Sale and Servicing Agreement, if it is requested by the Trust Collateral Agent to do so. Funding hereby acknowledges that any repurchase of Ineligible Loans under this Article VI, whether from Funding or directly from the Trust, shall be the sole remedy of Funding in respect to the Ineligible Loans. (d) Each Dealer Loan, Dealer Loan Contract, Purchased Loan or Purchased Loan Contract which is subject Any cash transferred to a payment in accordance with Buyer pursuant to Section 6.1(b) or (c4(a) above shall, upon payment in full shall be credited to the Repurchase Price of the related Purchase Amount, be reconveyed to CAC and shall no longer constitute Conveyed Property. After payment in full of the related Purchase Amount and upon the request of CAC, Funding shall execute and deliver to CAC any assignments, termination statements and any other releases and instruments as CAC may reasonably request in order to effect and evidence the release of Funding’s security interest on such Dealer Loan, Dealer Loan Contract, Purchased Loan or Purchased Loan ContractTransactions.