Repurchased Loan Clause Samples

The Repurchased Loan clause defines the terms under which a loan that was previously sold or transferred is bought back by the original lender or seller. Typically, this clause outlines the circumstances that trigger a repurchase, such as a breach of representations or warranties, or the loan becoming delinquent shortly after sale. For example, if a loan is found to have documentation errors or does not meet agreed-upon underwriting standards, the buyer can require the seller to repurchase it. The core function of this clause is to allocate risk and ensure that the buyer is protected from defective or non-performing loans, thereby maintaining the integrity of the loan sale transaction.