Common use of Option to Substitute Clause in Contracts

Option to Substitute. If the Seller is required to repurchase any Mortgage Loan pursuant to Section 2.02 or 3.01, the Seller may, at its option, within two years from the Closing Date, remove such defective Mortgage Loan from the terms of this Agreement and substitute another mortgage loan for such defective Mortgage Loan, in lieu of repurchasing such defective Mortgage Loan. Any substitute Mortgage Loan shall (a) have a Principal Balance at the time of substitution not in excess of the Principal Balance of the removed Mortgage Loan (the amount of any difference, plus one month's interest thereon at the Mortgage Rate borne by the removed Mortgage Loan, being paid by the Seller and deemed to be a Principal Prepayment to be deposited by the Servicer in the Collection Account), (b) have a Mortgage Rate not less than, and not more than one percentage point greater than, the Mortgage Rate of the removed Mortgage Loan (provided, however, that if the Mortgage Rate on the substitute Mortgage Loan exceeds the Mortgage Rate on the removed Mortgage Loan, the amount of that excess interest (the

Option to Substitute. If the Seller is required to repurchase any Mortgage Loan pursuant to Section 2.02 or 3.01, the Seller may, at its option, within two years from the Closing Date, remove such defective Mortgage Loan from the terms of this Agreement and substitute another mortgage loan for such defective Mortgage Loan, in lieu of repurchasing such defective Mortgage Loan. Any substitute Mortgage Loan shall (a) have a Principal Balance at the time of substitution not in excess of the Principal Balance of the removed Mortgage Loan (the amount of any difference, plus one month's ’s interest thereon at the Mortgage Rate borne by the removed Mortgage Loan, being paid by the Seller and deemed to be a Principal Prepayment to be deposited by the Servicer in the Collection Account), (b) have a Mortgage Rate not less than, and not more than one percentage point greater than, the Mortgage Rate of the removed Mortgage Loan (provided, however, that if the Mortgage Rate on the substitute Mortgage Loan exceeds the Mortgage Rate on the removed Mortgage Loan, the amount of that excess interest (the

Option to Substitute. If the Mortgage Loan Seller is would otherwise be required to repurchase any Mortgage Loan pursuant to Section 1.04 or 2.02 or 3.01hereof, the Mortgage Loan Seller may, at its option, but only within less than two years from of the Closing Date, remove such defective deficient Mortgage Loan from the terms of this Agreement and substitute another mortgage loan for such defective deficient Mortgage Loan, in lieu of repurchasing such defective deficient Mortgage Loan. Any substitute Mortgage Loan shall (ai) have a Principal Balance an outstanding principal amount at the time of substitution not in excess of the Principal Balance outstanding principal amount of the removed Mortgage Loan (the amount of any difference, plus one month's interest thereon at the Mortgage Rate borne by the removed deficient Mortgage Loan, being paid by the Seller and deemed to be a Principal Prepayment to be deposited by the Servicer in the Collection Account), (bii) have a Mortgage Rate not less thanthan the Mortgage Rate of the deficient Mortgage Loan, and not more than one percentage point greater than, than the Mortgage Rate of the removed Mortgage Loan (provided, however, that if the Mortgage Rate on the substitute Mortgage Loan exceeds the Mortgage Rate on the removed deficient Mortgage Loan, (iii) have a remaining term to maturity not later than, and not more than one year less than, the amount remaining term to maturity of the deficient Mortgage Loan, (iv) be, in the reasonable determination of the related servicer, of the same type, quality and character (including location of the Mortgaged Property) as the deficient Mortgage Loan as if the breach had not occurred, (v) have a Loan-to-Value Ratio at origination not greater than that excess interest (theof the deficient Mortgage Loan,