Common use of Repurchase of Converted Mortgage Loans Clause in Contracts

Repurchase of Converted Mortgage Loans. In the event a Mortgagor exercises the option to convert a Convertible Mortgage Loan to a fixed rate mortgage loan in accordance with the terms of the related Mortgage Note, the Seller shall repurchase such Convertible Mortgage Loan within thirty (30) days of such conversion taking effect, and the Seller shall provide prior notice of such repurchase to the Purchaser or its designee, at a price equal to 100% of the unpaid principal balance of such Convertible Mortgage Loan at the time of such conversion plus interest due and payable through the last day of the month of repurchase at the Mortgage Loan Remittance Rate, provided, however, no interest for the month of repurchase shall be due and payable if a Convertible Mortgage Loan is repurchased on the first day of a month. Any repurchase of a Convertible Mortgage Loan pursuant to the foregoing provisions of this Subsection 7.05 shall be accomplished by remitting the amount of such repurchase price to the Servicer for deposit in the Custodial Account for distribution to the Purchaser on the next scheduled Remittance Date.