Servicing Fee Amount Clause Samples
The 'Servicing Fee Amount' clause defines the specific fee that will be paid to a party responsible for managing or administering a particular service, such as a loan or an asset portfolio. This clause typically outlines how the fee is calculated—whether as a fixed sum, a percentage of outstanding balances, or based on another metric—and specifies the frequency and method of payment. By clearly stating the servicing fee, the clause ensures transparency in compensation, prevents disputes over payment amounts, and allocates the cost of servicing between the relevant parties.
Servicing Fee Amount. In consideration of the services rendered under this Agreement, absent default by the Servicer, the Servicer shall on each Remittance Date be entitled to a monthly aggregate servicing compensation (the "Monthly Servicing Compensation") for the preceding month which shall equal the sum of (a) the Servicing Fee payable with respect to each Mortgage Loan serviced during such month and (b) any interest earnings on each Custodial P&I Account with respect to such month other than interest earnings thereon which are payable to the Borrower pursuant to the Security Instrument or applicable law, subject to any adjustment for Month End Interest as described in Section 7.6.1. Absent default by the Servicer, the Servicer shall also be entitled to retain in addition to the Monthly Servicing Compensation any late charges, prepayment fees, penalty interest, assumption fees, modification fees or deficiency recovery fees paid by the Borrower, any Liquidation Profits or any other customary income or any payments of interest related to any Prepayment in Full received by the Servicer prior to the Applicable Unscheduled Receipt Period, which amounts are not required to be deposited into the Custodial P&I Account. The Servicer shall be required to pay all expenses incurred by it in connection with its servicing activities hereunder and shall not be entitled to reimbursement therefor except as specifically provided for herein.