Common use of Prepayment Penalty Term Clause in Contracts

Prepayment Penalty Term. No Mortgage Loan is subject to a prepayment penalty except as provided in the related Mortgage Note and as set forth on the related Mortgage Loan Schedule. With respect to each Mortgage Loan that has a prepayment penalty feature, each such prepayment penalty is enforceable and will be enforced by the Servicer for the benefit of the Purchaser, and each prepayment penalty is permitted pursuant to federal, state and local law. Each such prepayment penalty is in an amount not more than the maximum amount permitted under applicable law and no such prepayment penalty may be imposed for a term in excess of five (5) years with respect to Mortgage Loans originated prior to October, 1, 2002. With respect to Mortgage Loans originated on or after October 1, 2002, the duration of the prepayment period shall not exceed three (3) years from the date of the Mortgage Note unless the Mortgage Loan was modified to reduce the prepayment period to no more than three (3) years from the date of such Mortgage Note and the Mortgagor was notified in writing of such reduction in prepayment period. With respect to any Mortgage Loan that contains a provision permitting imposition of a penalty upon a prepayment prior to maturity: (i) the Mortgage Loan provides some benefit to the Mortgagor (e.g., a rate or fee reduction) in exchange for accepting such prepayment penalty, (ii) the Mortgage Loan’s originator had a written policy of offering the Mortgagor or requiring third-party brokers to offer the Mortgagor, the option of obtaining a mortgage loan that did not require payment of such a penalty, (iii) the prepayment penalty was adequately disclosed to the Mortgagor in the mortgage loan documents pursuant to applicable state, local and federal law and (iv) notwithstanding any state, local or federal law to the contrary, the Servicer shall not impose such prepayment premium in any instance when the mortgage debt is accelerated as the result of the Mortgagor’s default in making the loan payments. This representation and warranty is a Deemed Material Breach Representation;

Prepayment Penalty Term. No Mortgage Loan is subject to a prepayment penalty except as provided in the related Mortgage Note and as set forth on the related Mortgage Loan Schedule. With respect to each Mortgage Loan that has a prepayment penalty feature, each such prepayment penalty is enforceable and will be enforced by the Servicer for the benefit of the Purchaser, and each prepayment penalty is permitted pursuant to federal, state and local law. Each such prepayment penalty is in an amount not more than the maximum amount permitted under applicable law and no such prepayment penalty may be imposed for a term in excess of five (5) years with respect to Mortgage Loans originated prior to October, 1, 2002. With respect to Mortgage Loans originated on or after October 1, 2002, the duration of the prepayment period shall not exceed three (3) years from the date of the Mortgage Note unless the Mortgage Loan was modified to reduce the prepayment period to no more than three (3) years from the date of such Mortgage Note the note and the Mortgagor was notified in writing of such reduction in prepayment period. With respect to any Mortgage Loan that contains a provision permitting imposition of a penalty premium upon a prepayment prior to maturity: (i) the Mortgage Loan provides some benefit prior to the loan’s origination, the Mortgagor (e.g.agreed to such premium in exchange for a monetary benefit, including but not limited to a rate or fee reduction) in exchange for accepting such prepayment penalty, (ii) prior to the Mortgage Loanloan’s originator had a written policy of offering origination, the Mortgagor or requiring third-party brokers to offer the Mortgagor, was offered the option of obtaining a mortgage loan that did not require payment of such a penaltypremium, (iii) the prepayment penalty was adequately premium is disclosed to the Mortgagor in the mortgage loan documents pursuant to applicable state, local and federal law law, and (iv) notwithstanding any state, local or federal law to the contrary, the Servicer shall not impose such prepayment premium in any instance when the mortgage debt is accelerated as the result of the Mortgagor’s default in making the loan payments. This representation and warranty is a Deemed Material Breach Representation;

Prepayment Penalty Term. No Mortgage Loan is subject to a prepayment penalty except as provided in the related Mortgage Note and as set forth on the related Mortgage Loan Schedule. With respect to each Mortgage Loan that has a prepayment penalty feature, each such prepayment penalty is enforceable and will be enforced by the Servicer for the benefit of the Purchaser, and each prepayment penalty is permitted pursuant to federal, state and local law. Each such prepayment penalty is in an amount not more than the maximum amount permitted under applicable law and no such prepayment penalty may be imposed for a term in excess of five (5) years with respect to Mortgage Loans originated prior to October, 1, 2002. With respect to Mortgage Loans originated on or after October 1, 2002, the duration of the prepayment period shall not exceed three (3) years from the date of the Mortgage Note unless the Mortgage Loan was modified to reduce the prepayment period to no more than three (3) years from the date of such Mortgage Note the note and the Mortgagor was notified in writing of such reduction in prepayment period. With respect to any Mortgage Loan that contains a provision permitting imposition of a penalty premium upon a prepayment prior to maturity: (i) the Mortgage Loan provides some benefit prior to the loan's origination, the Mortgagor (e.g.agreed to such premium in exchange for a monetary benefit, including but not limited to a rate or fee reduction) in exchange for accepting such prepayment penalty, (ii) prior to the Mortgage Loan’s originator had a written policy of offering loan's origination, the Mortgagor or requiring third-party brokers to offer the Mortgagor, was offered the option of obtaining a mortgage loan that did not require payment of such a penaltypremium, (iii) the prepayment penalty was adequately premium is disclosed to the Mortgagor in the mortgage loan documents pursuant to applicable state, local and federal law law, and (iv) notwithstanding any state, local or federal law to the contrary, the Servicer shall not impose such prepayment premium in any instance when the mortgage debt is accelerated as the result of the Mortgagor’s 's default in making the loan payments. This representation and warranty is a Deemed Material Breach Representation;