Pledged Asset Mortgage Loans. For each Pledged Asset Mortgage Loan, the Company has obtained a Letter of Credit from the Pledge Holder for the Pledged Value Amount. The Pledge Holder is responsible for managing the Pledge Account, which includes making a determination as to the types of assets or accounts the Mortgagor may pledge, as well as the Pledge Account Set-Up Value and Pledge Account Maintenance Value. In the event that the value of the Pledge Account is reduced below the Pledge Account Maintenance Value, the Pledge Holder will require the Mortgagor to add funds to the Pledge Account. In the event the Mortgagor is unable to comply with the Pledge Account Maintenance Value requirements, the Pledge Holder can perform a margin call. The Company has no role in the management or maintenance of the Pledge Account.
Appears in 7 contracts
Samples: Warranties and Servicing Agreement (MASTR Adjustable Rate Mortgages Trust 2006-2), Warranties and Servicing Agreement (Merrill Lynch Mortgage Investors Trust Series 2006-A3), Warranties and Servicing Agreement (Merrill Lynch Mortgage Investors Trust Series 2005-A9)
