The Subservicers Clause Samples
The Subservicers clause defines the rights and responsibilities related to third-party entities, known as subservicers, that a primary servicer may engage to perform some or all servicing duties under an agreement. Typically, this clause outlines the conditions under which subservicers can be appointed, the standards they must meet, and the extent to which the primary servicer remains liable for their actions. For example, it may require that subservicers be reputable and experienced, and that the primary servicer continues to oversee their performance. The core function of this clause is to ensure that the delegation of servicing tasks does not compromise the quality or reliability of service, while clarifying accountability and risk allocation between the parties involved.
The Subservicers. The parties acknowledge that the Servicer intends to appoint the Subservicers as the Servicer's agents for the purpose of servicing on the Servicer's behalf such of the Mortgage Loans as were originated by such subservicer. The Servicer agrees to cause the Subservicers to service such Mortgage Loans in a manner consistent with the Accepted Servicing Practices set forth in this Agreement, and agrees that receipt by the Subservicers of any and all amounts which by the terms hereof are required to be deposited in the Collection Account shall constitute receipt thereof by the Servicer for all purposes hereof as of the date so received by the Subservicers. Notwithstanding such designation of the Subservicers, the Servicer agrees that it is, and it shall remain, fully obligated under the terms hereof as Servicer with respect to all such Mortgage Loans, and nothing herein shall relieve or release the Servicer from its obligations to the other parties hereto to service such Mortgage Loans in the manner provided in this Agreement.
The Subservicers. (a) The Servicer hereby appoints the Subservicers as the Servicer's agents for the purpose of servicing, on the Servicer's behalf, the respective Mortgage Loans as were originated by such Subservicers and transferred by them, in their capacity as Originators hereunder, to the Depositor. The Subservicers hereby accept such appointment. The Subservicers shall service such Mortgage Loans in a manner consistent with the Accepted Servicing Practices set forth in this Agreement, and receipt by the Subservicers of any and all amounts which by the terms hereof are required to be deposited in the Collection Account shall constitute receipt thereof by the Servicer for all purposes hereof as of the date so received by the Subservicers. Notwithstanding such designation of the Subservicers, the Servicer agrees that it is, and it shall remain, fully obligated under the terms hereof as Servicer with respect to all such Mortgage Loans, and nothing herein shall relieve or release the Servicer from its obligations to the other parties hereto to service such Mortgage Loans in the manner provided in this Agreement.
(b) The Subservicers shall be compensated for their services hereunder by the Servicer out of its Servicing Fee. No party other than the Servicer shall be responsible for payment of the subservicing fees.
(c) The Subservicers are subject to Section 7.01(b) hereof regarding the servicing term and Article IX hereof regarding events of default. The Subservicers may be removed in the same circumstances as the Servicer thereunder.
The Subservicers. 23 Section 5.14. Reports to the Indenture Trustee; Collection Account Statements.................................24 Section 5.15. Optional Purchase of Defaulted Mortgage Loans...................................................24 Section 5.16. Reports to be Provided by the Servicer..........................................................25 Section 5.17. Adjustment of Servicing Compensation in Respect of Prepaid Mortgage Loans.......................26 Section 5.18. Periodic Advances; Special Advance..............................................................26 Section 5.19. Indemnification; Third Party Claims.............................................................27