Common use of Substitution Adjustment Clause in Contracts

Substitution Adjustment. As to any date on which a substitution occurs pursuant to Section 2.06, the excess of (1) the aggregate Principal Balances of all Defective Mortgage Loans to be replaced by Eligible Substitute Mortgage Loans (after application of principal payments received on or before the date of substitution of any Eligible Substitute Mortgage Loans as of the date of substitution), together with the greater of (a) all accrued and unpaid interest thereon and (b) 30 days’ interest calculated on a 360-day year thereon at the Loan Rate (or Net Loan Rate if the Seller is the Servicer), plus the amount of any unreimbursed Servicing Advances made by the Servicer with respect to such Defective Mortgage Loan, over (2) the aggregate Principal Balances of such Eligible Substitute Mortgage Loans.