Common use of Transfer by Participant Clause in Contracts

Transfer by Participant. Participant will have the right to assign, transfer, convey, pledge, hypothecate or otherwise dispose of a Participation Certificate. In the event of such assignment, transfer, conveyance, hypothecation or disposition, Seller will re-register the Participation Certificate upon request by Participant’s transferee. Seller specifically acknowledges that Participant may (and shall have the right to) pledge an Ownership Interest in a Mortgage Loan to the Federal Home Loan Bank of Indianapolis (“FHLBI”) as collateral under an Advances, Pledge and Security Agreement by and between Participant and FHLBI (the “APSA”). Notwithstanding anything in this Agreement to the contrary, Seller further acknowledges and agrees that during such time as this Certificate is pledged to the FHLBI, (i) Participant and Seller will hold the Mortgage Loan Documents in trust for the benefit of both Participant and the FHLBI, as their interests may appear, and (ii) the FHLBI shall have the right to take possession and ownership of the Ownership Interest pursuant to the APSA. Seller further agrees to provide the FHLBI with duplicate copies of all notices or other communications to or from Participant pursuant to this Agreement with respect to such Ownership Interest. Participant also will have the right to sub-participate its Ownership Interest to one or more sub-participants.

Transfer by Participant. Participant will have the right to assign, transfer, convey, pledge, hypothecate or otherwise dispose of a each Participation Certificate. In the event of such assignment, transfer, conveyance, hypothecation or disposition, Seller will re-register the applicable Participation Certificate upon request by Participant’s transferee. Seller specifically acknowledges that Participant may (and shall have the right to) pledge an the Ownership Interest in a Mortgage each Warehouse Loan to the one or more Federal Home Loan Bank of Indianapolis Banks (each, the “FHLBIFHLB”) as collateral under an Advances, Pledge and Security Agreement by and between Participant and FHLBI FHLB (the “APSA”). Notwithstanding anything in this Agreement to the contrary, Seller further acknowledges and agrees that during such time as this a Participation Certificate is pledged to the FHLBIFHLB, (i) Participant and Seller or Warehouse Borrower under Participant’s direction will hold the applicable Mortgage Loan Documents in trust for the benefit of both Participant and the FHLBIFHLB, as their interests may appear, and (ii) the FHLBI FHLB shall have the right to take possession and ownership of the Ownership Interest pursuant to the APSA. Seller further agrees to provide the FHLBI FHLB with duplicate copies of all notices or other communications to or from Participant pursuant to this Agreement with respect to such Ownership Interest. Participant also will have the right to sub-participate its Ownership Interest to one or more sub-participants.

Transfer by Participant. Participant will have the right to assign, transfer, convey, pledge, hypothecate or otherwise dispose of a Participation Certificate. In the event of such assignment, transfer, conveyance, hypothecation or disposition, Seller will re-register the Participation Certificate upon request by Participant’s transferee. Seller specifically acknowledges that Participant may (and shall have the right to) pledge an Ownership Interest in a Mortgage Loan to the Federal Home Loan Bank of Indianapolis (“FHLBI”) as collateral under an Advances, Pledge and Security Agreement by and between Participant and FHLBI (the “APSA”). Notwithstanding anything in this Agreement to the contrary, Seller further acknowledges and agrees that during such time as this Certificate is pledged to the FHLBI, (i) Participant and Seller will hold the Mortgage Loan Documents in trust for the benefit of both Participant and the FHLBI, as their interests may appear, and (ii) the FHLBI shall have the right to take possession and ownership of the Ownership Interest pursuant to the APSA. Seller further agrees to provide the FHLBI with duplicate copies of all notices or other communications to or from Participant pursuant to this Agreement with respect to such Ownership Interest. Participant also will have the right to sub-participate its Ownership Interest lnterest to one or more sub-participants.