Common use of Servicing of Eligible Loans Clause in Contracts

Servicing of Eligible Loans. (a) Each Eligible Loan which is subject to a Participation Interest shall be serviced by a Servicer (which may be the Sponsor) at the direction of the Custodian pursuant to the terms of an Eligible Servicing Agreement, and in accordance with Department regulations. No such Servicer shall be subject to sanction by the Department.

Servicing of Eligible Loans. (a) Each Eligible Loan which is subject to a Participation Interest shall be serviced by a Servicer (which may be the Sponsor) at the direction of the Custodian pursuant to the terms of an Eligible Servicing Agreement, and in accordance with Department regulations. No such Servicer shall be entity that is subject to sanction by the DepartmentDepartment may act as a Servicer. A Sponsor that services its own Loans and that proposes to service Purchased Eligible Loans for the Custodian must enter into an Eligible Servicing Agreement with the Custodian to perform that function.