Common use of Repurchase by Xxxxxx Clause in Contracts

Repurchase by Xxxxxx. The Lender has the option to repurchase the unpaid guaranteed portion of the loan from the Holder(s) within 30 days of written demand by the Holder(s) when: (a) the bor- rower is in default not less than 60 days on principal or interest due on the loan or (b) the Lender has failed to remit to the Hold- er(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 less the Lender’s serv- icing fee. The Loan Note Guarantee—DARBE 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 requesting the repurchase. Hold- er(s) will concurrently send a copy of xx- xxxx to FmHA or its successor agency under Public Law 103–354. The Lender will accept an assignment without recourse from the Holder(s) upon repurchase. The Lender is en- couraged to repurchase the loan to facilitate the accounting for funds, resolve the prob- lem, and to permit the borrower to cure the default, where reasonable. The Lender will notify the Holder(s) and FmHA or its suc- cessor agency under Public Law 103–354 of its decision. As per the terms of this guarantee the maximum loss payment will not exceed $2,500,000 for principal, interest, and ap- proved protective advances.