Common use of Obligations of the Supplemental Servicer Clause in Contracts

Obligations of the Supplemental Servicer. (a) The Supplemental Servicer shall, with respect to each Mandatory Trust Group, and may, with respect to each Optional Trust Group, advance on each Monthly Remittance Date, until the Supplemental Servicer's advancing obligation terminates pursuant to Section 4.01 hereof, to each Trustee on behalf its respective Trust Groups, a "Supplemental Delinquency Advance" in an amount equal to the lesser of (i) the "Calculated Delinquency Advance," which shall be the lesser of: (a) the Delinquency Advance due on such Monthly Remittance Date for such Trust Group less (I) any Compensating Interest with respect to such Remittance Period not paid by the Servicer with its own funds and (II) any portion of a Delinquency Advance to the extent payable as a result of accounting or other errors, or the failure to deposit funds or the misapplication of funds by the Servicer, and (b) 5.0% of the unpaid principal balance of the Home Equity Loans of such Trust Group as of the last Business Day of the calendar month immediately preceding the calendar month in which such Monthly Remittance Date occurs less any unreimbursed Supplemental Delinquency Advances for such Trust Group as of such Monthly Remittance Date; and (ii) if the aggregate of all Calculated Delinquency Advances exceeds the Maximum Available Supplemental Delinquency Advance, the amount of the Calculated Delinquency Advance shall be allocated on a pro rata basis among the Trusts, based on the ratio of the aggregate Calculated Delinquency Advances due to all Trusts to the Maximum Available Supplemental Delinquency Advance, first among the Mandatory Trust Groups and secondly among the Optional Trust Groups for which the Supplemental Servicer is making a Supplemental Delinquency Advance. With respect to any Trust Group, the Supplemental Servicer may agree in its sole discretion to make a Supplemental Delinquency Advance in an amount greater than the Calculated Delinquency Advance provided for above. Unless otherwise agreed by the Supplemental Servicer in its sole discretion, in no event shall the aggregate of all Supplemental Delinquency Advances exceed the Maximum Available Supplemental Delinquency Advance. The difference between the Supplemental Delinquency Advance paid by the Supplemental Servicer on any Monthly Remittance Date to a particular Trust Group and received by the Trustee and the total Delinquency Advance due under the Pooling Agreement for such Trust Group on such Monthly Remittance Date shall be paid by the Servicer as a Delinquency Advance (a "Servicer Delinquency Advance"). (b) No later than 1:00 p.m. New York time on the Business Day preceding each Monthly Remittance Date, the Servicer shall deliver to the Supplemental Servicer, each Trustee and the Certificate Insurer for each Trust a notice (the "Supplemental Delinquency Advance Notice"), in the form of Exhibit I hereto, setting forth, among other things, the amounts due on such Monthly Remittance Date for the Delinquency Advance, the Supplemental Delinquency Advance and the Servicer Delinquency Advance to each Trustee for each Trust Group, and the amounts thereof from prior Remittance Periods that remain unreimbursed. (c) As soon as reasonably practicable following receipt of the Supplemental Delinquency Advance Notice, the Supplemental Servicer shall advise the Servicer and the Verification Agent of the amount, if any, of the Supplemental Advance it intends to make in respect of Optional Trust Groups. On each Monthly Remittance Date, the Supplemental Servicer shall, pursuant to the terms of this Section 2.02, pay in immediately available funds by wire transfer to the Certificate Account for each Trust the Supplemental Delinquency Advance due in respect of each Mandatory Trust Group and, if it elects to make such advance, the Supplemental Delinquency Advance (or portion thereof) due in respect of each Optional Trust Group. (d) The obligation of the Supplemental Servicer to make a Supplemental Delinquency Advance in respect of a Mandatory Trust Group is expressly conditioned upon (i) issuance of a Supplemental Delinquency Advance Notice verified by the Verification Agent at least one Business Day prior to the Monthly Remittance Date with regard to such Trust Group, (ii) no Turbo Event with respect to any Trust having occurred and continuing unremedied and no facts or circumstances described in Section 4.01(c) having occurred and continuing unremedied, without regard to whether the Supplemental Servicer has issued a notice with respect to such event(s), (iii) this Amendment not having been terminated; (iv) the Clearing Bank not having failed to act in accordance with a Disbursement Notice; (v) the Supplemental Servicer determining in its reasonable good faith judgment that such Supplemental Delinquency Advance will be recoverable from Net Collections of such Trust Group within three months of the date made; and (vi) the Servicer having paid in full all amounts due to the Verification Agent (collectively, the "Advance Conditions"). Notwithstanding any provision contained herein to the contrary, the Supplemental Servicer shall have no obligation to make a Supplemental Delinquency Advance to a particular Trust unless all the Advance Conditions have been satisfied and the making of a Supplemental Delinquency Advance if any Advance Conditions are not satisfied shall not constitute a waiver of such right or be construed as a precedent.