Common use of Realization Upon Defaulted Home Equity Loans Clause in Contracts

Realization Upon Defaulted Home Equity Loans. The Master Servicer shall, or shall cause the applicable Subservicer to, foreclose upon or otherwise comparably convert to ownership Mortgaged Properties securing such of the Home Equity Loans as come into and continue in default when, in the opinion of the Master Servicer, no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.02. In connection with such foreclosure or other conversion, the Master Servicer or such Subservicer shall follow such practices (including, in the case of any default on a related prior deed of trust, the advancing of funds to correct such default) and procedures as it shall deem necessary or advisable and as shall be normal and usual from time to time in its general mortgage servicing activities. In determining whether to foreclose upon or otherwise comparably convert the ownership of a Mortgaged Property, the Master Servicer and each Subservicer shall take into account (and shall not be required to foreclose or otherwise convert the ownership of such Mortgaged Property in the case of) the existence of any hazardous substances, hazardous wastes or solid wastes, as such terms are defined in the Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery Act of 1976, or other federal, state or local environmental legislation, on such Mortgaged Property. The foregoing is subject to the proviso that neither the Master Servicer nor any Subservicer shall be required to expend its own funds in connection with any foreclosure or other conversion or towards the correction of any default on a related prior mortgage loan or restoration of any property unless it shall determine that such foreclosure, correction or restoration will increase Trust Liquidation Proceeds. In the event that the Trust Fund acquires any Mortgaged Property by foreclosure or by deed in lieu of foreclosure, such Mortgaged Property shall be disposed of by or on behalf of the Trust Fund within two years after its acquisition by the Trust Fund unless the Trustee shall have received an Opinion of Counsel to the effect that the holding by the Trust Fund of such Mortgaged Property subsequent to two years after its acquisition will not result in the imposition of taxes on "prohibited transactions" (as defined in section 860F of the Code) of the Trust Fund or cause the Trust Fund to fail to qualify as a REMIC at any time that any Certificates are outstanding.

Realization Upon Defaulted Home Equity Loans. The Master With respect to those of the Home Equity Loans which become and continue in default, the Servicer shall, or shall cause the applicable Subservicer to, will decide whether to (i) foreclose upon or otherwise comparably convert to ownership the Mortgaged Properties securing such Home Equity Loans, (ii) write off the unpaid principal balance of the Home Equity Loans as come into and continue bad debt, (iii) take a deed in default whenlieu of foreclosure, (iv) accept a short sale, (v) arrange for a repayment plan, (vi) agree to a modification in accordance with this Servicing Agreement, or (vii) take an unsecured note or substitute a new lien, in each case subject to the opinion rights of any related first lien holder; provided that in connection with the Master Servicerforegoing if the Servicer has actual knowledge that any Mortgaged Property is affected by hazardous or toxic wastes or substances and that the acquisition of such Mortgaged Property would not be commercially reasonable, no satisfactory arrangements can be made for collection of delinquent payments pursuant then the Servicer will not cause the Issuer or the Indenture Trustee to Section 3.02acquire title to such Mortgaged Property in a foreclosure or similar proceeding. In connection with such foreclosure or other conversiondecision, the Master Servicer or such Subservicer shall follow such practices (including, in the case of any default on a related prior deed of trustsenior mortgage loan, the advancing of funds to correct such defaultdefault if deemed to be appropriate by the Servicer) and procedures as it shall deem necessary or advisable and as shall be normal and usual from time to time in its general mortgage servicing activities. In determining whether to foreclose upon or otherwise comparably convert ; provided that the ownership of a Mortgaged Property, the Master Servicer and each Subservicer shall take into account (and shall not be required to foreclose liable in any respect hereunder if the Servicer is acting in connection with any such foreclosure or otherwise convert the ownership of such Mortgaged Property in the case of) the existence of any hazardous substances, hazardous wastes or solid wastes, as such terms are defined in the Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery Act of 1976, attempted foreclosure which is not completed or other federal, state or local environmental legislation, on such Mortgaged Propertyconversion in a manner that is consistent with the provisions of this Servicing Agreement. The foregoing is subject to the proviso that neither the Master Servicer nor any Subservicer shall not be required to expend its own funds in connection with any foreclosure or other conversion attempted foreclosure or towards the correction of any default on a related prior senior mortgage loan or restoration of any property unless it shall determine that such foreclosure, correction or restoration expenditure will increase Trust Net Liquidation Proceeds. In the event that the Trust Fund acquires any Mortgaged Property by foreclosure or by deed in lieu of foreclosure, such Mortgaged Property shall be disposed of by or on behalf of the Trust Fund within two years after its acquisition a determination by the Trust Fund unless the Trustee shall have received an Opinion of Counsel to the effect that the holding by the Trust Fund of such Mortgaged Property subsequent to two years after its acquisition will not result in the imposition of taxes on "prohibited transactions" (as defined in section 860F of the Code) of the Trust Fund or cause the Trust Fund to fail to qualify as a REMIC at any time Servicer that any Certificates are outstanding.such expenditure previously made pursuant to this Section

Realization Upon Defaulted Home Equity Loans. The Master With respect to those of the Home Equity Loans which become and continue in default, the Servicer shall, or shall cause the applicable Subservicer to, will decide whether to (i) foreclose upon or otherwise comparably convert to ownership the Mortgaged Properties securing such Home Equity Loans, (ii) write off the unpaid principal balance of the Home Equity Loans as come into and continue bad debt, (iii) take a deed in default whenlieu of foreclosure, (iv) accept a short sale, (v) arrange for a repayment plan, (vi) agree to a modification in accordance with this Servicing Agreement, or (vii) take an unsecured note or substitute a new lien, in each case subject to the opinion rights of any related first lien holder; provided that in connection with the Master Servicerforegoing if the Servicer has actual knowledge that any Mortgaged Property is affected by hazardous or toxic wastes or substances and that the acquisition of such Mortgaged Property would not be commercially reasonable, no satisfactory arrangements can be made for collection of delinquent payments pursuant then the Servicer will not cause the Issuer or the Indenture Trustee to Section 3.02acquire title to such Mortgaged Property in a foreclosure or similar proceeding. In connection with such foreclosure or other conversiondecision, the Master Servicer or such Subservicer shall follow such practices (including, in the case of any default on a related prior deed of trustsenior mortgage loan, the advancing of funds to correct such defaultdefault if deemed to be appropriate by the Servicer) and procedures as it shall deem necessary or advisable and as shall be normal and usual from time to time in its general mortgage servicing activities. In determining whether to foreclose upon or otherwise comparably convert ; provided that the ownership of a Mortgaged Property, the Master Servicer and each Subservicer shall take into account (and shall not be required to foreclose liable in any respect hereunder if the Servicer is acting in connection with any such foreclosure or otherwise convert the ownership of such Mortgaged Property in the case of) the existence of any hazardous substances, hazardous wastes or solid wastes, as such terms are defined in the Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery Act of 1976, attempted foreclosure which is not completed or other federal, state or local environmental legislation, on such Mortgaged Propertyconversion in a manner that is consistent with the provisions of this Servicing Agreement. The foregoing is subject to the proviso that neither the Master Servicer nor any Subservicer shall not be required to expend its own funds in connection with any foreclosure or other conversion attempted foreclosure or towards the correction of any default on a related prior senior mortgage loan or restoration of any property unless it shall determine that such foreclosure, correction or restoration expenditure will increase Trust Net Liquidation Proceeds. In the event of a determination by the Servicer that any such expenditure previously made pursuant to this Section 3.07 will not be reimbursable from Net Liquidation Proceeds, the Trust Fund acquires Servicer shall be entitled to reimbursement of its funds so expended pursuant to Section 3.03. Notwithstanding any provision of this Servicing Agreement, a Home Equity Loan may be deemed to be finally liquidated if substantially all amounts expected by the Servicer to be received in connection with the related defaulted Home Equity Loan have been received; provided, however, that any subsequent collections with respect to any such Home Equity Loan shall be deposited to the Collection Account. For purposes of determining the amount of any Liquidation Proceeds or Insurance Proceeds, or other unscheduled collections, the Servicer may take into account minimal amounts of additional receipts expected to be received or any estimated additional liquidation expenses expected to be incurred in connection with the related defaulted Home Equity Loan. As soon as practical thereafter the expenses of such sale shall be paid and the Servicer shall reimburse itself for any related xxxxxxxxxxxx X&X Advances, Servicing Advances, unpaid Servicing Fees, and on the Remittance Date immediately following the date on which such sale proceeds are received the net cash proceeds of such sale remaining in the Collection Account shall be distributed to the Seller. In the event that title to any Mortgaged Property by is acquired in foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale shall be issued to the Indenture Trustee, who shall hold the same on behalf of the Issuer in accordance with Section 3.13 of the Indenture. Notwithstanding any such acquisition of title and cancellation of the related Home Equity Loan, such Mortgaged Property shall (except as otherwise expressly provided herein) be considered to be an outstanding Home Equity Loan held as an asset of the Issuer until such time as such property shall be sold. Consistent with the foregoing for purposes of all calculations hereunder, so long as such Mortgaged Property shall be disposed of by or on behalf of considered to be an outstanding Home Equity Loan it shall be assumed that, notwithstanding that the Trust Fund within two years after its acquisition indebtedness evidenced by the Trust Fund unless the Trustee related Credit Line Agreement shall have received an Opinion been discharged, such Credit Line Agreement in effect at the time of Counsel any such acquisition of title before any adjustment thereto by reason of any bankruptcy or similar proceeding or any moratorium or similar waiver or grace period will remain in effect. Any proceeds from foreclosure proceedings or the purchase or repurchase of any Home Equity Loan pursuant to the effect that the holding by the Trust Fund terms of such Mortgaged Property subsequent to two years after its acquisition this Servicing Agreement, as well as any recovery resulting from a collection of Liquidation Proceeds or Insurance Proceeds, will not result be applied in the imposition following order of taxes priority: first, to reimburse the Servicer in accordance with Section 3.03(vi) and this Section 3.07; second, to the Servicer, all Servicing Fees payable therefrom (to the extent not retained pursuant to Section 3.02(b)); third, to the Payment Account to the extent of accrued and unpaid interest to the Payment Date on "prohibited transactions" the related Home Equity Loan, at the Loan Rate (as defined in section 860F of less the Code) of Servicing Fee Rate); fourth, to the Trust Fund or cause the Trust Fund to fail to qualify Payment Account as a REMIC at any time that any Certificates are outstandingrecovery of principal on the Home Equity Loan; and fifth, to Foreclosure Profits (to the extent permitted by law).

Realization Upon Defaulted Home Equity Loans. The Master Servicer shall, or shall cause the applicable Subservicer to, foreclose upon or otherwise comparably convert to ownership Mortgaged Properties securing such of the Home Equity Loans as come into and continue in delinquency or default when, in the opinion of the Master Servicer, and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.02. In connection with such foreclosure or other conversion, the Master Servicer or such Subservicer shall follow such practices (including, in the case of any delinquency or default on a related prior deed of trustsenior mortgage, the advancing of funds to correct such delinquency or default) and procedures as it shall deem necessary or advisable and as shall be normal and usual from time to time in its the general mortgage home equity loan servicing activitiesactivities of the Servicer. In determining whether to foreclose upon or otherwise comparably convert The Servicer shall be reimbursed for Property Protection Expenses incurred by it out of the ownership related Liquidation Proceeds or, if such proceeds are inadequate, out of a Mortgaged Propertyother amounts in the Collection Account. Notwithstanding the foregoing, the Master Servicer and each Subservicer shall take into account (and shall not be required to foreclose or otherwise convert the ownership of such Mortgaged Property in the case of(i) the existence of any hazardous substances, hazardous wastes or solid wastes, as such terms are defined in the Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery Act of 1976, or other federal, state or local environmental legislation, on such Mortgaged Property. The foregoing is subject to the proviso that neither the Master Servicer nor any Subservicer shall be required to expend its own funds in connection with any foreclosure or other conversion or towards the correction of any delinquency or default on a related prior senior mortgage loan or restoration of any property unless it shall determine that unless, in the reasonable judgment of the Servicer, such foreclosure, correction or restoration will increase Trust Net Liquidation Proceeds, or (ii) to foreclose upon or otherwise convert to ownership any Mortgaged Property which the Servicer has determined may be materially contaminated with hazardous wastes or hazardous substances. All Net Liquidation Proceeds or other proceeds of any defaulted Home Equity Loan (net of any related Property Protection Expenses) shall be deposited into the Collection Account. In the event that the Trust Fund acquires title to any Mortgaged Property by securing a Home Equity Loan is acquired in foreclosure or by deed in lieu of foreclosure, such Mortgaged Property the deed or certificate of sale shall be disposed of by or issued to the Servicer on behalf of the Trust Fund within two years after its acquisition by the Trust Fund unless Trust, to the Trustee shall have received an Opinion on behalf of Counsel Certificateholders or to the effect that Trustee's nominee on behalf of Certificateholders. The Servicer or an affiliate of the holding by the Trust Fund of Servicer shall maintain a blanket hazard insurance policy covering hazard losses on such Mortgaged Property subsequent to two years after its acquisition will not result in for the imposition of taxes on "prohibited transactions" (as defined in section 860F benefit of the Code) of the Trust Fund or cause the Trust Fund to fail to qualify as a REMIC at any time that any Certificates are outstandingTrust.

Realization Upon Defaulted Home Equity Loans. The Master With respect to those of the Home Equity Loans which become and continue in default, the Servicer shall, or shall cause the applicable Subservicer to, will decide whether to (i) foreclose upon or otherwise comparably convert to ownership the Mortgaged Properties securing such Home Equity Loans, (ii) write off the unpaid principal balance of the Home Equity Loans as come into and continue bad debt, (iii) take a deed in default whenlieu of foreclosure, (iv) accept a short sale, (v) arrange for a repayment plan, (vi) agree to a modification in accordance with this Servicing Agreement, or (vii) take an unsecured note or substitute a new lien, in each case subject to the opinion rights of any related first lien holder; provided that in connection with the Master Servicerforegoing if the Servicer has actual knowledge that any Mortgaged Property is affected by hazardous or toxic wastes or substances and that the acquisition of such Mortgaged Property would not be commercially reasonable, no satisfactory arrangements can be made for collection of delinquent payments pursuant then the Servicer will not cause the Issuer or the Indenture Trustee to Section 3.02acquire title to such Mortgaged Property in a foreclosure or similar proceeding. In connection with such foreclosure or other conversiondecision, the Master Servicer or such Subservicer shall follow such practices (including, in the case of any default on a related prior deed of trustsenior mortgage loan, the advancing of funds to correct such defaultdefault if deemed to be appropriate by the Servicer) and procedures as it shall deem necessary or advisable and as shall be normal and usual from time to time in its general mortgage servicing activities. In determining whether to foreclose upon or otherwise comparably convert ; provided that the ownership of a Mortgaged Property, the Master Servicer and each Subservicer shall take into account (and shall not be required to foreclose liable in any respect hereunder if the Servicer is acting in connection with any such foreclosure or otherwise convert the ownership of such Mortgaged Property in the case of) the existence of any hazardous substances, hazardous wastes or solid wastes, as such terms are defined in the Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery Act of 1976, attempted foreclosure which is not completed or other federal, state or local environmental legislation, on such Mortgaged Propertyconversion in a manner that is consistent with the provisions of this Servicing Agreement. The foregoing is subject to the proviso that neither the Master Servicer nor any Subservicer shall not be required to expend its own funds in connection with any foreclosure or other conversion attempted foreclosure or towards the correction of any default on a related prior senior mortgage loan or restoration of any property unless it shall determine that such foreclosure, correction or restoration expenditure will increase Trust Net Liquidation Proceeds. In the event of a determination by the Servicer that any such expenditure previously made pursuant to this Section 3.07 will not be reimbursable from Net Liquidation Proceeds, the Trust Fund acquires Servicer shall be entitled to reimbursement of its funds so expended pursuant to Section 3.03. Notwithstanding any provision of this Servicing Agreement, a Home Equity Loan may be deemed to be finally liquidated if substantially all amounts expected by the Servicer to be received in connection with the related defaulted Home Equity Loan have been received; provided, however, that any subsequent collections with respect to any such Home Equity Loan shall be deposited to the Collection Account. For purposes of determining the amount of any Liquidation Proceeds or Insurance Proceeds, or other unscheduled collections, the Servicer may take into account minimal amounts of additional receipts expected to be received or any estimated additional liquidation expenses expected to be incurred in connection with the related defaulted Home Equity Loan. In the event that title to any Mortgaged Property by is acquired in foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale shall be issued to the Indenture Trustee, who shall hold the same on behalf of the Issuer in accordance with Section 3.13 of the Indenture. Notwithstanding any such acquisition of title and cancellation of the related Home Equity Loan, such Mortgaged Property shall (except as otherwise expressly provided herein) be considered to be an outstanding Home Equity Loan held as an asset of the Issuer until such time as such property shall be sold. Consistent with the foregoing for purposes of all calculations hereunder, so long as such Mortgaged Property shall be disposed of by or on behalf of considered to be an outstanding Home Equity Loan it shall be assumed that, notwithstanding that the Trust Fund within two years after its acquisition indebtedness evidenced by the Trust Fund unless the Trustee related Credit Line Agreement shall have received an Opinion been discharged, such Credit Line Agreement in effect at the time of Counsel any such acquisition of title before any adjustment thereto by reason of any bankruptcy or similar proceeding or any moratorium or similar waiver or grace period will remain in effect. Any proceeds from foreclosure proceedings or the purchase or repurchase of any Home Equity Loan pursuant to the effect that the holding by the Trust Fund terms of such Mortgaged Property subsequent to two years after its acquisition this Servicing Agreement, as well as any recovery resulting from a collection of Liquidation Proceeds or Insurance Proceeds, will not result be applied in the imposition following order of taxes priority: first, to reimburse the Servicer in accordance with Section 3.03(vii) and this Section 3.07; second, to the Servicer, all Servicing Fees payable therefrom (to the extent not retained pursuant to Section 3.02(b)); third, to the Payment Account to the extent of accrued and unpaid interest to the Payment Date on "prohibited transactions" the related Home Equity Loan, at the Loan Rate (as defined in section 860F of less the Code) of Servicing Fee Rate); fourth, to the Trust Fund or cause the Trust Fund to fail to qualify Payment Account as a REMIC at any time that any Certificates are outstandingrecovery of principal on the Home Equity Loan; and fifth, to Foreclosure Profits (to the extent permitted by law).

Realization Upon Defaulted Home Equity Loans. The Master With respect to those of the Home Equity Loans which become and continue in default, the Servicer shall, or shall cause the applicable Subservicer to, will decide whether to (i) foreclose upon or otherwise comparably convert to ownership the Mortgaged Properties securing such Home Equity Loans, (ii) write off the unpaid principal balance of the Home Equity Loans as come into and continue bad debt, (iii) take a deed in default whenlieu of foreclosure, (iv) accept a short sale, (v) arrange for a repayment plan, (vi) agree to a modification in accordance with this Servicing Agreement, or (vii) take an unsecured note or substitute a new lien, in each case subject to the opinion rights of any related first lien holder; provided that in connection with the Master Servicerforegoing if the Servicer has actual knowledge that any Mortgaged Property is affected by hazardous or toxic wastes or substances and that the acquisition of such Mortgaged Property would not be commercially reasonable, no satisfactory arrangements can be made for collection of delinquent payments pursuant then the Servicer will not cause the Issuer or the Indenture Trustee to Section 3.02acquire title to such Mortgaged Property in a foreclosure or similar proceeding. In connection with such foreclosure or other conversiondecision, the Master Servicer or such Subservicer shall follow such practices (including, in the case of any default on a related prior deed of trustsenior mortgage loan, the advancing of funds to correct such defaultdefault if deemed to be appropriate by the Servicer) and procedures as it shall deem necessary or advisable and as shall be normal and usual from time to time in its general mortgage servicing activities. In determining whether to foreclose upon or otherwise comparably convert ; provided that the ownership of a Mortgaged Property, the Master Servicer and each Subservicer shall take into account (and shall not be required to foreclose liable in any respect hereunder if the Servicer is acting in connection with any such foreclosure or otherwise convert the ownership of such Mortgaged Property in the case of) the existence of any hazardous substances, hazardous wastes or solid wastes, as such terms are defined in the Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery Act of 1976, attempted foreclosure which is not completed or other federal, state or local environmental legislation, on such Mortgaged Propertyconversion in a manner that is consistent with the provisions of this Servicing Agreement. The foregoing is subject to the proviso that neither the Master Servicer nor any Subservicer shall not be required to expend its own funds in connection with any foreclosure or other conversion attempted foreclosure or towards the correction of any default on a related prior senior mortgage loan or restoration of any property unless it shall determine that such foreclosure, correction or restoration expenditure will increase Trust Net Liquidation Proceeds. In the event of a determination by the Servicer that any such expenditure previously made pursuant to this Section 3.07 will not be reimbursable from Net Liquidation Proceeds, the Trust Fund acquires Servicer shall be entitled to reimbursement of its funds so expended pursuant to Section 3.03. Notwithstanding any provision of this Servicing Agreement, a Home Equity Loan may be deemed to be finally liquidated if substantially all amounts expected by the Servicer to be received in connection with the related defaulted Home Equity Loan have been received; provided, however, that any subsequent collections with respect to any such Home Equity Loan shall be deposited to the Collection Account. For purposes of determining the amount of any Liquidation Proceeds or Insurance Proceeds, or other unscheduled collections, the Servicer may take into account minimal amounts of additional receipts expected to be received or any estimated additional liquidation expenses expected to be incurred in connection with the related defaulted Home Equity Loan. In the event that title to any Mortgaged Property by is acquired in foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale shall be issued to the Indenture Trustee, who shall hold the same on behalf of the Issuer in accordance with Section 3.13 of the Indenture. Notwithstanding any such acquisition of title and cancellation of the related Home Equity Loan, such Mortgaged Property shall (except as otherwise expressly provided herein) be considered to be an outstanding Home Equity Loan held as an asset of the Issuer until such time as such property shall be sold. Consistent with the foregoing for purposes of all calculations hereunder, so long as such Mortgaged Property shall be disposed of by or on behalf of considered to be an outstanding Home Equity Loan it shall be assumed that, notwithstanding that the Trust Fund within two years after its acquisition indebtedness evidenced by the Trust Fund unless the Trustee related Credit Line Agreement shall have received an Opinion been discharged, such Credit Line Agreement in effect at the time of Counsel any such acquisition of title before any adjustment thereto by reason of any bankruptcy or similar proceeding or any moratorium or similar waiver or grace period will remain in effect. Any proceeds from foreclosure proceedings or the purchase or repurchase of any Home Equity Loan pursuant to the effect that the holding by the Trust Fund terms of such Mortgaged Property subsequent to two years after its acquisition this Servicing Agreement, as well as any recovery resulting from a collection of Liquidation Proceeds or Insurance Proceeds, will not result be applied in the imposition following order of taxes priority: first, to reimburse the Servicer in accordance with Section 3.03(vii) and this Section 3.07; second, to the Servicer, all Servicing Fees payable therefrom; third, to the extent of accrued and unpaid interest to the Payment Date on "prohibited transactions" the related Home Equity Loan, at the Loan Rate (as defined less the Servicing Fee Rate) on which such amounts are to be deposited in section 860F of the Code) of the Trust Fund or cause the Trust Fund to fail to qualify Payment Account; fourth, as a REMIC at any time that any Certificates are outstandingrecovery of principal on the Home Equity Loan; and fifth, to Foreclosure Profits.

Realization Upon Defaulted Home Equity Loans. The Master With respect to those of the Home Equity Loans which become and continue in default, the Servicer shall, or shall cause the applicable Subservicer to, will decide whether to (i) foreclose upon or otherwise comparably convert to ownership the Mortgaged Properties securing such Home Equity Loans, (ii) write off the unpaid principal balance of the Home Equity Loans as come into and continue bad debt, (iii) take a deed in default whenlieu of foreclosure, (iv) accept a short sale, (v) arrange for a repayment plan, (vi) agree to a modification in accordance with this Servicing Agreement, or (vii) take an unsecured note or substitute a new lien, in each case subject to the opinion rights of any related first lien holder; provided that in connection with the Master Servicerforegoing if the Servicer has actual knowledge that any Mortgaged Property is affected by hazardous or toxic wastes or substances and that the acquisition of such Mortgaged Property would not be commercially reasonable, no satisfactory arrangements can be made for collection of delinquent payments pursuant then the Servicer will not cause the Issuer or the Indenture Trustee to Section 3.02acquire title to such Mortgaged Property in a foreclosure or similar proceeding. In connection with such foreclosure or other conversiondecision, the Master Servicer or such Subservicer shall follow such practices (including, in the case of any default on a related prior deed of trustsenior mortgage loan, the advancing of funds to correct such defaultdefault if deemed to be appropriate by the Servicer) and procedures as it shall deem necessary or advisable and as shall be normal and usual from time to time in its general mortgage servicing activities. In determining whether to foreclose upon or otherwise comparably convert ; provided that the ownership of a Mortgaged Property, the Master Servicer and each Subservicer shall take into account (and shall not be required to foreclose liable in any respect hereunder if the Servicer is acting in connection with any such foreclosure or otherwise convert the ownership of such Mortgaged Property in the case of) the existence of any hazardous substances, hazardous wastes or solid wastes, as such terms are defined in the Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery Act of 1976, attempted foreclosure which is not completed or other federal, state or local environmental legislation, on such Mortgaged Propertyconversion in a manner that is consistent with the provisions of this Servicing Agreement. The foregoing is subject to the proviso that neither the Master Servicer nor any Subservicer shall not be required to expend its own funds in connection with any foreclosure or other conversion attempted foreclosure or towards the correction of any default on a related prior senior mortgage loan or restoration of any property unless it shall determine that such foreclosure, correction or restoration expenditure will increase Trust Net Liquidation Proceeds. In the event of a determination by the Servicer that any such expenditure previously made pursuant to this Section 3.07 will not be reimbursable from Net Liquidation Proceeds, the Trust Fund acquires Servicer shall be entitled to reimbursement of its funds so expended pursuant to Section 3.03. Notwithstanding any provision of this Servicing Agreement, a Home Equity Loan may be deemed to be finally liquidated if substantially all amounts expected by the Servicer to be received in connection with the related defaulted Home Equity Loan have been received; provided, however, that any subsequent collections with respect to any such Home Equity Loan shall be deposited to the Collection Account. For purposes of determining the amount of any Liquidation Proceeds or Insurance Proceeds, or other unscheduled collections, the Servicer may take into account minimal amounts of additional receipts expected to be received or any estimated additional liquidation expenses expected to be incurred in connection with the related defaulted Home Equity Loan. In the event that title to any Mortgaged Property by is acquired in foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale shall be issued to the Indenture Trustee, who shall hold the same on behalf of the Issuer in accordance with Section 3.13 of the Indenture. Notwithstanding any such acquisition of title and cancellation of the related Home Equity Loan, such Mortgaged Property shall (except as otherwise expressly provided herein) be considered to be an outstanding Home Equity Loan held as an asset of the Issuer until such time as such property shall be sold. Consistent with the foregoing for purposes of all calculations hereunder, so long as such Mortgaged Property shall be disposed of by or on behalf of considered to be an outstanding Home Equity Loan it shall be assumed that, notwithstanding that the Trust Fund within two years after its acquisition indebtedness evidenced by the Trust Fund unless the Trustee related Credit Line Agreement shall have received an Opinion been discharged, such Credit Line Agreement in effect at the time of Counsel any such acquisition of title before any adjustment thereto by reason of any bankruptcy or similar proceeding or any moratorium or similar waiver or grace period will remain in effect. Any proceeds from foreclosure proceedings or the purchase or repurchase of any Home Equity Loan pursuant to the effect that the holding by the Trust Fund terms of such Mortgaged Property subsequent to two years after its acquisition this Servicing Agreement, as well as any recovery resulting from a collection of Liquidation Proceeds or Insurance Proceeds, will not result be applied in the imposition following order of taxes priority: first, to reimburse the Servicer in accordance with Section 3.03(vii) and this Section 3.07; second, to the Servicer, all Servicing Fees payable therefrom; third, to the Payment Account to the extent of accrued and unpaid interest to the Payment Date on "prohibited transactions" the related Home Equity Loan, at the Loan Rate (as defined in section 860F of less the Code) of Servicing Fee Rate); fourth, to the Trust Fund or cause the Trust Fund to fail to qualify Payment Account as a REMIC at any time that any Certificates are outstandingrecovery of principal on the Home Equity Loan; and fifth, to Foreclosure Profits.