Common use of Realization Upon Default Clause in Contracts

Realization Upon Default. (a) The Trustee, on behalf of the Holders, shall assert claims under the Underlying Securities or the Permitted Investments, and shall take such reasonable steps as are necessary to receive payment or to permit recovery thereunder with respect to any default, subject in all cases to the terms of Article X. (b) If the Trustee is unable to obtain full recovery in respect of a defaulted Underlying Security or Permitted Investment, the Trustee shall follow or cause to be followed such normal practices and procedures as it deems necessary or advisable to realize upon such defaulted Underlying Security or Permitted Investment, subject in all cases to the terms of Article X. (c) If there is an event of default (as defined in the Underlying Security Indenture) with respect to any Underlying Security and such default is known to the Trustee, the Trustee shall promptly give notice to the Holders thereof as promptly as practicable as provided in Section 12.05 hereof, and in the manner and to the extent provided in TIA Section 313(c)) within 90 days after such event of default occurs. (d) Except as otherwise expressly provided in the applicable prospectus supplement and the Terms Schedule attached hereto, if the proceeds of any liquidation of the defaulted Deposited Assets are less than the sum of (i) the outstanding principal balance of the defaulted Deposited Asset, (ii) interest accrued but unpaid thereon at the applicable interest rate and (iii) the aggregate amount of expenses incurred by the Trust Administrator and the trustee in connection with such proceedings to the extent reimbursable from the assets of the trust under the trust agreement, the trust will realize a loss in the amount of such difference. (e) Only if and to the extent provided in the applicable prospectus supplement and in the Terms Schedule attached hereto, the Trust Administrator or trustee, as so provided, will be entitled to withdraw or cause to be withdrawn from the related Certificate Account out of the net proceeds recovered on any defaulted Deposited Asset, prior to the distribution of such proceeds to certificateholders, amounts representing its normal administrative compensation on the Deposited Asset, unreimbursed administrative expenses incurred with respect to the Deposited Asset and any unreimbursed advances of delinquent payments made with respect to the Deposited Asset.

Realization Upon Default. The Servicer, on behalf of and as the agent of the Indenture Trustee, shall foreclose upon or otherwise comparably convert the ownership of Mortgaged Properties securing such of the Home Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 2.02(a) into the name of the Indenture Trustee; provided, however, that if the Servicer has actual knowledge or reasonably believes that any Mortgaged Property is affected by hazardous or toxic wastes or substances, then the Servicer will cause to be undertaken an environmental inspection of the Mortgaged Property that complies with Xxxxxx Mae's selling and servicing guide applicable to single family homes and its servicing procedures. If the environmental inspection reveals any potentially hazardous substances, the Servicer will notify the Indenture Trustee and the Note Insurer, and the Servicer will not foreclose or accept a deed in lieu of foreclosure on the Mortgaged Property without the consent of the Note Insurer. In connection with such foreclosure or other conversion, the Servicer shall follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general loan servicing activities. The foregoing is subject to the proviso that the Servicer shall not be required to expend its own funds in connection with any foreclosure or restoration of any Mortgaged Property unless, in the reasonable judgment of the Servicer, such foreclosure, correction or restoration will increase Net Liquidation Proceeds (a) The taking into account the reimbursement of such expenses to the Servicer and any unreimbursed Servicing Advances made or expected to be made with respect to such Home Loan). To the extent the Net Liquidation Proceeds derived from any such foreclosure or conversion exceed the Principal Balance of the related Home Loan and accrued interest thereon at the applicable Mortgage Interest Rate through the Determination Date during the Collection Period in which such foreclosure or conversion occurs, such excess shall be paid directly to the Servicer as additional Servicing Compensation and shall be free from the lien of the Indenture. In the event that title to any Mortgaged Property is acquired as REO Property by the Indenture Trustee in foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale shall be issued to the Indenture Trustee, or to its nominee, on behalf of the Holders, shall assert claims under Noteholders and the Underlying Securities or the Permitted InvestmentsNote Insurer, and the Servicer shall take manage, conserve, protect and operate each such reasonable steps REO Property for the Noteholders solely for the purpose of its prompt disposition and sale. The Servicer shall use its best efforts to dispose of each such REO Property as are necessary to receive payment expeditiously as possible consistent with the goal of maximizing Net Liquidation Proceeds (taking into account any unreimbursed Servicing Advances made or to permit recovery thereunder with respect to any default, subject in all cases to the terms of Article X. (b) If the Trustee is unable to obtain full recovery in respect of a defaulted Underlying Security or Permitted Investment, the Trustee shall follow or cause expected to be followed such normal practices and procedures as it deems necessary or advisable to realize upon such defaulted Underlying Security or Permitted Investment, subject in all cases to the terms of Article X. (c) If there is an event of default (as defined in the Underlying Security Indenture) with respect to any Underlying Security and such default is known to the Trustee, the Trustee shall promptly give notice to the Holders thereof as promptly as practicable as provided in Section 12.05 hereof, and in the manner and to the extent provided in TIA Section 313(c)) within 90 days after such event of default occurs. (d) Except as otherwise expressly provided in the applicable prospectus supplement and the Terms Schedule attached hereto, if the proceeds of any liquidation of the defaulted Deposited Assets are less than the sum of (i) the outstanding principal balance of the defaulted Deposited Asset, (ii) interest accrued but unpaid thereon at the applicable interest rate and (iii) the aggregate amount of expenses incurred by the Trust Administrator and the trustee in connection with such proceedings to the extent reimbursable from the assets of the trust under the trust agreement, the trust will realize a loss in the amount of such difference. (e) Only if and to the extent provided in the applicable prospectus supplement and in the Terms Schedule attached hereto, the Trust Administrator or trustee, as so provided, will be entitled to withdraw or cause to be withdrawn from the related Certificate Account out of the net proceeds recovered on any defaulted Deposited Asset, prior to the distribution of such proceeds to certificateholders, amounts representing its normal administrative compensation on the Deposited Asset, unreimbursed administrative expenses incurred with respect to the Deposited Asset and any unreimbursed advances of delinquent payments made with respect to such REO Property). None of the Deposited AssetIssuer, the Indenture Trustee or the Servicer, acting on behalf of the Trust Estate, shall provide financing from the Trust Estate to any purchaser of any such REO Property. The Servicer must determine, as to each defaulted Home Loan, when such Home Loan has become a Liquidated Home Loan.

Realization Upon Default. The Servicer, on behalf of and as the agent of the Indenture Trustee, shall foreclose upon or otherwise comparably convert the ownership of Mortgaged Properties securing such of the Home Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 2.02(a) into the name of the Indenture Trustee; PROVIDED, HOWEVER, that if the Servicer has actual knowledge or reasonably believes that any Mortgaged Property is affected by hazardous or toxic wastes or substances, then the Servicer will cause to be undertaken an environmental inspection of the Mortgaged Property that complies with Xxxxxx Mae's selling and servicing guide applicable to single family homes and its servicing procedures. If the environmental inspection reveals any potentially hazardous substances, the Servicer will notify the Indenture Trustee and the Note Insurer, and the Servicer will not foreclose or accept a deed in lieu of foreclosure on the Mortgaged Property without the consent of the Note Insurer. In connection with such foreclosure or other conversion, the Servicer shall follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general loan servicing activities. The foregoing is subject to the proviso that the Servicer shall not be required to expend its own funds in connection with any foreclosure or restoration of any Mortgaged Property unless, in the reasonable judgment of the Servicer, such foreclosure, correction or restoration will increase Net Liquidation Proceeds (a) The taking into account the reimbursement of such expenses to the Servicer and any unreimbursed Servicing Advances made or expected to be made with respect to such Home Loan). To the extent the Net Liquidation Proceeds derived from any such foreclosure or conversion exceed the Principal Balance of the related Home Loan and accrued interest thereon at the applicable Mortgage Interest Rate through the Determination Date during the Collection Period in which such foreclosure or conversion occurs, such excess shall be paid directly to the Servicer as additional Servicing Compensation and shall be free from the lien of the Indenture. In the event that title to any Mortgaged Property is acquired as REO Property by the Indenture Trustee in foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale shall be issued to the Indenture Trustee, or to its nominee, on behalf of the Holders, shall assert claims under Noteholders and the Underlying Securities or the Permitted InvestmentsNote Insurer, and the Servicer shall take manage, conserve, protect and operate each such reasonable steps REO Property for the Noteholders solely for the purpose of its prompt disposition and sale. The Servicer shall use its best efforts to dispose of each such REO Property as are necessary to receive payment expeditiously as possible consistent with the goal of maximizing Net Liquidation Proceeds (taking into account any unreimbursed Servicing Advances made or to permit recovery thereunder with respect to any default, subject in all cases to the terms of Article X. (b) If the Trustee is unable to obtain full recovery in respect of a defaulted Underlying Security or Permitted Investment, the Trustee shall follow or cause expected to be followed such normal practices and procedures as it deems necessary or advisable to realize upon such defaulted Underlying Security or Permitted Investment, subject in all cases to the terms of Article X. (c) If there is an event of default (as defined in the Underlying Security Indenture) with respect to any Underlying Security and such default is known to the Trustee, the Trustee shall promptly give notice to the Holders thereof as promptly as practicable as provided in Section 12.05 hereof, and in the manner and to the extent provided in TIA Section 313(c)) within 90 days after such event of default occurs. (d) Except as otherwise expressly provided in the applicable prospectus supplement and the Terms Schedule attached hereto, if the proceeds of any liquidation of the defaulted Deposited Assets are less than the sum of (i) the outstanding principal balance of the defaulted Deposited Asset, (ii) interest accrued but unpaid thereon at the applicable interest rate and (iii) the aggregate amount of expenses incurred by the Trust Administrator and the trustee in connection with such proceedings to the extent reimbursable from the assets of the trust under the trust agreement, the trust will realize a loss in the amount of such difference. (e) Only if and to the extent provided in the applicable prospectus supplement and in the Terms Schedule attached hereto, the Trust Administrator or trustee, as so provided, will be entitled to withdraw or cause to be withdrawn from the related Certificate Account out of the net proceeds recovered on any defaulted Deposited Asset, prior to the distribution of such proceeds to certificateholders, amounts representing its normal administrative compensation on the Deposited Asset, unreimbursed administrative expenses incurred with respect to the Deposited Asset and any unreimbursed advances of delinquent payments made with respect to such REO Property). None of the Deposited AssetIssuer, the Indenture Trustee or the Servicer, acting on behalf of the Trust Estate, shall provide financing from the Trust Estate to any purchaser of any such REO Property. The Servicer must determine, as to each defaulted Home Loan, when such Home Loan has become a Liquidated Home Loan.