Common use of Negligent Servicing Clause in Contracts

Negligent Servicing. The guarantee cannot be enforced by the lender to the extent a loss results from a violation of usury laws or negligent servicing regardless of when the Agency discovers such violation or negligence. Negligent servicing is defined as the failure to perform those services which would be considered normal industry standards of loan management or failure to comply with any servicing requirement of 7 C.F.R. Part 762 or the lender's agreement or the guarantee. The term includes the concept of a failure to act or failing to act timely consistent with actions of a reasonable lender in loan making, servicing, and collection.

Negligent Servicing. The guarantee cannot be enforced by the lender Lender to the extent a loss results from a violation of usury laws or negligent servicing regardless of when the Agency Authority discovers such violation or negligence. Negligent servicing is defined as the failure to perform those services which a reasonably prudent Lender would be considered normal industry standards perform in servicing its own portfolio of loan management or failure to comply with any servicing requirement of 7 C.F.R. Part 762 or the lender's agreement or the guaranteeloans that are not guaranteed. The term includes the concept of both a failure to act and not acting in a timely manner to include actions taken up to the time of loan maturity or failing to act timely consistent with actions of a reasonable lender in loan making, servicing, and collectionuntil final loss is paid.

Negligent Servicing. The guarantee cannot be enforced by the lender to the extent a loss results from a violation of usury laws or negligent servicing regardless of when the Agency discovers such violation or negligence. Negligent servicing is defined as the failure to perform those services which would be considered normal industry standards of loan management or failure to comply with any servicing requirement of 7 C.F.R. Part 762 or the lender's agreement or the guarantee. The term includes the concept of a failure to act or failing to act timely consistent with actions of a reasonable lender in loan making, servicing, and collection. 5.