Common use of Release of Mortgage Files; Wrongful Satisfaction of Mortgages Clause in Contracts

Release of Mortgage Files; Wrongful Satisfaction of Mortgages. Upon the payment in full of any Mortgage Loan, the Servicer will prepare and process any required satisfaction or release of the Mortgage and notify the Owner as provided in Section 5.02. If the Servicer satisfies or releases the lien of a Mortgage without having obtained payment in full of the indebtedness secured by the Mortgage, the Servicer, upon written demand, shall remit to the Owner the then Assumed Principal Balance of the related Mortgage Loan by deposit thereof in the Custodial Account. The Servicer shall maintain the Fidelity Bond as provided for in Section 4.13 insuring the Servicer against any loss it may sustain with respect to any Mortgage Loan not satisfied in accordance with the procedures set forth herein.

Release of Mortgage Files; Wrongful Satisfaction of Mortgages. Upon the payment in full of any Mortgage Loan, the Servicer will prepare and process any required satisfaction or release of the Mortgage and notify the Owner as provided in Section 5.02. If the Servicer satisfies or releases the lien of a Mortgage Xxxx-xxxx without having obtained payment in full of the indebtedness secured by the Mortgage, the Servicer, upon written demand, shall remit to the Owner the then Assumed Principal Balance of the related Mortgage Loan by deposit thereof in the Custodial Account. The Servicer shall maintain the Fidelity Bond as provided for in Section 4.13 insuring the Servicer against any loss it may sustain with respect to any Mortgage Loan not satisfied in accordance with the procedures set forth herein.