Common use of PURCHASE OF CONTRACTS UPON BREACH BY SERVICER Clause in Contracts

PURCHASE OF CONTRACTS UPON BREACH BY SERVICER. The Servicer or the Issuer shall inform the other party and the Indenture Trustee and the Insurer promptly, in writing, upon the discovery of any breach of the covenants, representations and warranties set forth in Section 3.06 or of the covenants set forth in Sections 3.02 or 3.05. Unless the breach shall have been cured within 30 days following such discovery or receipt of notice of such breach, the Servicer shall purchase any Contract materially and adversely affected by such breach from the Issuer. As consideration for the Contract, the Servicer shall remit the Purchase Amount on the Business Day preceding the Servicer Report Date next succeeding the end of such 30-day cure period in the manner specified in Section 4.02(a). The sole remedy of the Issuer, the Indenture Trustee, or the Noteholders with respect to a breach of Section 3.02, 3.05 or 3.06 shall be to require the Servicer to purchase Contracts pursuant to this Section 3.07; provided, however, that the Servicer shall indemnify the Owner Trustee, the Indenture Trustee, the Insurer, the Issuer, the Custodian and the Noteholders against all costs, expenses, losses damages, claims and liabilities, including reasonable fees and expenses of counsel, which may be asserted against or incurred by any of them as a result of third-party claims arising out of the events or facts giving rise to such breach. Any successor Servicer appointed pursuant to Section 7.02 shall not be obligated to purchase Contracts pursuant to this Section 3.07 with respect to any breaches by any prior Servicer.

PURCHASE OF CONTRACTS UPON BREACH BY SERVICER. The Servicer or the Issuer shall inform the other party and the Indenture Trustee and the Insurer promptly, in writing, upon the discovery of any breach of the covenants, representations and warranties set forth in Section 3.06 or of the covenants set forth in Sections 3.02 or 3.05. Unless the breach shall have been cured within 30 days following such discovery or receipt of notice of such breach, the Servicer shall purchase any Contract materially and adversely affected by such breach from the Issuer. As consideration for the Contract, the Servicer shall remit the Purchase Amount on the Business Day preceding the Servicer Report Date next succeeding the end of such 30-day cure period in the manner specified in Section 4.02(a). The sole remedy of the Issuer, the Indenture Trustee, or the Noteholders Securityholders with respect to a breach of Section 3.02, 3.05 or 3.06 shall be to require the Servicer to purchase Contracts pursuant to this Section 3.07; provided, however, that the Servicer shall indemnify the Owner Trustee, the Indenture Trustee, the Insurer, the Issuer, the Custodian and the Noteholders Securityholders against all costs, expenses, losses damages, claims and liabilities, including reasonable fees and expenses of counsel, which may be asserted against or incurred by any of them as a result of third-party claims arising out of the events or facts giving rise to such breach. Any successor Servicer appointed pursuant to Section 7.02 shall not be obligated to purchase Contracts pursuant to this Section 3.07 with respect to any breaches by any prior Servicer.

PURCHASE OF CONTRACTS UPON BREACH BY SERVICER. The Servicer or the Issuer shall inform the other party and the Indenture Trustee and the Insurer promptly, in writing, upon the discovery of any breach of the covenants, representations and warranties set forth in Section 3.06 or of the covenants set forth in Sections 3.02 or 3.05. Unless the breach shall have been cured within 30 days following such discovery or receipt of notice of such breach, the Servicer shall purchase any Contract materially and adversely affected by such breach from the Issuer. As consideration for the Contract, the Servicer shall remit the Purchase Amount on the Business Day preceding the Servicer Report Date next succeeding the end of such 30-day cure period in the manner specified in Section 4.02(a). The sole remedy of the Issuer, the Indenture Trustee, or the Noteholders with respect to a breach of Section 3.02, 3.05 or 3.06 shall be to require the Servicer to purchase Contracts pursuant to this Section 3.07; provided, however, that the Servicer shall indemnify the Owner Trustee, the Indenture Trustee, the Insurer, the Issuer, the Custodian and the Noteholders against all costs, expenses, losses damages, claims and liabilities, including reasonable fees and expenses of counsel, which may be asserted against or incurred by any of them as a result of third-party claims arising out of the events or facts giving rise to such breach. Any successor Successor Servicer appointed pursuant to Section 7.02 shall not be obligated to purchase Contracts pursuant to this Section 3.07 with respect to any breaches by any prior Servicer.

PURCHASE OF CONTRACTS UPON BREACH BY SERVICER. The Servicer or the Issuer shall inform the other party and the Indenture Trustee and the Insurer promptly, in writing, upon the discovery of any breach of the covenants, representations and warranties set forth in Section 3.06 3.05 or of the covenants set forth in Sections 3.02 3.02, 3.03 or 3.053.04; provided, however, that delivery of the Distribution Date Statement shall be deemed to constitute prompt notice by the Servicer and the Issuer of such breach. Unless the breach shall have been cured within 30 days following such discovery prior to the end of the Collection Period that includes the 60th day (or, if the Servicer elects, an earlier date) after the date that the Servicer becomes aware or receipt is notified of notice of any such breach, the Servicer shall purchase any Contract materially and adversely affected by such breach from the Issuer. Any such purchase by the Servicer shall be at a price equal to the Purchase Amount. As consideration for the Contract, the Servicer shall remit make (or cause to be made) a payment equal to the Purchase Payment Amount to the Issuer prior to noon, New York City time, on the Business Day preceding the Servicer Report Distribution Date next succeeding following the end of such 30-day cure period Collection Period in the manner specified in Section 4.02(a). The sole remedy of the Issuer, the Insurer, the Indenture Trustee, or the Noteholders or any other Person with respect to a breach of Section 3.02, 3.03, 3.04 or 3.05 or 3.06 shall be to require the Servicer to purchase Contracts pursuant to this Section 3.073.06; provided, however, that the Servicer shall indemnify the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the Issuer, the Custodian and the Noteholders against all costs, expenses, losses damages, claims and liabilities, including reasonable fees and expenses of counsel, which may be asserted against or incurred by any of them as a result of third-party claims arising out of the events or facts giving rise to such breach. Any successor Successor Servicer appointed pursuant to Section 7.02 shall not be obligated to purchase Contracts pursuant to this Section 3.07 3.06 with respect to any breaches by any prior Servicer.

PURCHASE OF CONTRACTS UPON BREACH BY SERVICER. The Servicer or the Issuer shall inform the other party and the Indenture Trustee and the Insurer promptly, in writing, upon the discovery of any breach of the covenants, representations and warranties set forth in Section 3.06 or of the covenants set forth in Sections 3.02 or 3.05. Unless the breach shall have been cured within 30 days following such discovery or receipt of notice of such -45- 50 breach, the Servicer shall purchase any Contract materially and adversely affected by such breach from the Issuer. As consideration for the Contract, the Servicer shall remit the Purchase Amount on the Business Day preceding the Servicer Report Date next succeeding the end of such 30-day cure period in the manner specified in Section 4.02(a). The sole remedy of the Issuer, the Indenture Trustee, or the Noteholders with respect to a breach of Section 3.02, 3.05 or 3.06 shall be to require the Servicer to purchase Contracts pursuant to this Section 3.07; provided, however, that the Servicer shall indemnify the Owner Trustee, the Indenture Trustee, the Insurer, the Issuer, the Custodian and the Noteholders against all costs, expenses, losses damages, claims and liabilities, including reasonable fees and expenses of counsel, which may be asserted against or incurred by any of them as a result of third-party claims arising out of the events or facts giving rise to such breach. Any successor Servicer appointed pursuant to Section 7.02 shall not be obligated to purchase Contracts pursuant to this Section 3.07 with respect to any breaches by any prior Servicer.

PURCHASE OF CONTRACTS UPON BREACH BY SERVICER. The Servicer or the Issuer shall inform the other party and the Indenture Trustee and the Insurer promptly, in writing, upon the discovery of any breach of the covenants, representations and warranties set forth in Section 3.06 or of the covenants set forth in Sections 3.02 or 3.05. Unless the breach shall have been cured within 30 days following such discovery or receipt of notice of such breach, the Servicer shall purchase any Contract materially and adversely affected by such breach from the Issuer. As consideration for the Contract, the Servicer shall remit the Purchase Amount on the Business Day preceding the Servicer Report Date next succeeding the end of such 30-day cure period in the manner specified in Section 4.02(a). The sole remedy of the Issuer, the Indenture Trustee, or the Noteholders with respect to a breach of Section 3.02, 3.05 or 3.06 shall be to require the Servicer to purchase Contracts pursuant to this Section 3.07; provided, however, that the Servicer shall indemnify the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the Issuer, the Custodian and the Noteholders against all costs, expenses, losses damages, claims and liabilities, including reasonable fees and expenses of counsel, which may be asserted against or incurred by any of them as a result of third-party claims arising out of the events or facts giving rise to such breach. Any successor Successor Servicer appointed pursuant to Section 7.02 shall not be obligated to purchase Contracts pursuant to this Section 3.07 with respect to any breaches by any prior Servicer.

PURCHASE OF CONTRACTS UPON BREACH BY SERVICER. The Servicer or the Issuer shall inform the other party and the Indenture Trustee and the Insurer promptly, in writing, upon the discovery of any breach of the covenants, representations and warranties set forth in Section 3.06 3.05(b) or of the covenants set forth in Sections 3.02 3.02, 3.05 or 3.053.06 (a) provided, however, failure to give notice shall not affect any obligation of the Servicer under this Section 3.06. Unless the breach shall have been cured within 30 days following such discovery or receipt of notice of such breach, the Servicer shall purchase any Contract materially and adversely affected by such breach from the Issuer. As consideration for the Contract, the Servicer shall remit the Purchase Amount on the Business Day preceding the Servicer Report Date next succeeding the end of such 30-day cure period in the manner specified in Section 4.02(a). The sole remedy of the Issuer, the Indenture Trustee, or the Noteholders with respect to a breach of Section 3.02, 3.05 or 3.06 shall be to require the Servicer to purchase Contracts pursuant to this Section 3.07; provided, however, provided that the Servicer shall indemnify the Owner Trustee, the Indenture Trustee, the Insurer, the Issuer, the Custodian and the Noteholders against all costs, expenses, losses damages, claims and liabilities, including reasonable fees and expenses of counsel, which may be asserted against or incurred by any of them as a result of third-party claims arising out of the events or facts giving rise to such breach. Any successor Servicer appointed pursuant to Section 7.02 shall not be obligated to purchase Contracts pursuant to this Section 3.07 with respect to any breaches by any prior Servicer3.07.