Common use of REPURCHASE BY THE LENDER Clause in Contracts

REPURCHASE BY THE LENDER. (DEFAULTS). The Lender has the option to repurchase the unpaid guaranteed portion of the loan from the Holder(s) within 30 days of written xx- xxxx by the Holder(s) when: (a) the borrower is in default not less than 60 days on prin- cipal or interest due on the loan or (b) the Lender has failed to remit to the Holder(s) its pro rata share of any payment made by the borrower or any loan subsidy within 30 days of its receipt thereof. The repurchase by the Lender will be for an amount equal to the unpaid guaranteed portion of principal and accrued interest (including any loan sub- sidy), less the Lender’s servicing fee. The loan note guarantee will not cover the note interest to the Holder on the guaranteed loan(s) accruing after 90 days from the date of the demand letter to the Lender request- ing the repurchase. Holder(s) will concur- rently send a copy of demand to FmHA or its successor agency under Public Law 103–354. The Lender will accept an assignment with- out recourse from the Holder(s) upon repur- chase. The Lender is encouraged to repur- chase the loan to facilitate the accounting for funds, resolve the problem, and to permit the borrower to cure the default, where rea- sonable. The Lender will notify the Holder(s) and FmHA or its successor agency under Public Law 103–354 of its decision. As per the terms of the Loan Note Guarantee—DARBE the maximum loss payment will not exceed $2,500,000 for principal, interest and approved protective advances.