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Exhibit 10.69
SETTLEMENT SERVICE PROVIDER AGREEMENT
THIS AGREEMENT, made this 23 day of October, 1997 is between Mego Mortgage
Corporation (Lender) and Transamerica Home Loan (Provider). Provider is
engaged in the activities of a financial institution including the making of
loans. Lender is engaged in the activity of making loans and other extensions
of credit, particularly to homeowners.
In the course of its business, Provider receives applications for various
consumer loans, which may be in the form of real estate secured loans or
revolving lines of credit collectively such hereinafter being referred to as
the "Application", and such loans being hereinafter referred to as the "Covered
Loans." When it occurs that Provider rejects Applications for Covered Loans,
certain loan Applicants consent to Provider's communication of their
Applications or their identities to licensed consumer finance companies, such
consenting applications being hereinafter referred to as "Consenting
Applications." Provider is willing to provide settlement services to Lender
involving an arrangement for the communication, processing and evaluation of
information regarding Consenting Applicants to Lender, in accordance with the
terms and conditions hereof.
Lender and Provider therefore agree as follows:
1. Provider agrees to use its best efforts to secure the consent of
applicants for real estate secured consumer loan to the arrangement
contemplated herein. At such time as Provider obtains an applicant's consent
to transmit/communicate information concerning the applicant to Lender,
Provider shall promptly transmit or communicate such Consenting Application to
Lender, together with any other data and information then available to Provider
as a result of the Consenting Application.
2. For each Consenting Application that Provider has accurately and
completely processed and transmitted/communicated to Lender, Lender shall pay
Provider the sum of $185.00, payable monthly with respect to the previous
month's processed Provider Applications received, irrespective of whether
Lender consummates a credit transaction with such Consenting Applicant.
Notwithstanding the foregoing, for each Consenting Application received by
Lender where the initial contact between the Applicant and Provider occurred
between September 1, 1997 and November 1, 1997, Provider shall be paid the sum
of $125.00.
3. Lender agrees to maintain adequate records of all Consenting Applicants
for whom Lender's complete Application data has been transmitted/communicated to
Lender. Such records will be made available to Provider during business hours,
upon reasonable request.
4. Lender agrees that it will not solicit a deposit relationship with any
Consenting Applicant either on behalf of itself or an affiliate company of
Lender.
5. Lender agrees that it will observe and comply with all Federal and State
Laws and regulations with regard to any processed Consenting Applicant. Lender
agrees to indemnify and hold Provider and its employees harmless from any and
all damages, losses, costs or expenses incurred, relating to any claim, cause
of action or liability of any kind or nature arising out of the acts or
omissions of Lender. Provider agrees to indemnify and hold Lender and its
employees harmless from any and all damages, losses, costs or expenses
incurred, relating to any claim, cause of action or liability of any kind or
nature arising out of the acts of omissions of Provider prior to the time the
Consenting Applicant's Application data was transmitted/communicated to
Lender. Provider agrees to give timely notice of settlement negotiations or
defense of any legal or administrative action brought in connection therewith,
provided, however, that Provider shall have the right and authority to approve
any settlement which, upon notice to Lender, Provider reasonably believes would
have a material negative impact on Provider's business.
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6. Lender and Provider acknowledge that neither party hereto is the agent
and/or employee of any other party hereto.
7. This agreement may not be amended or modified except as agreed in writing
by the parties hereto.
8. This agreement may be terminated by either party upon fifteen (15) days
prior written notice. However, such termination shall not affect the rights of
the parties hereto with respect to any business transacted prior to the
effective date of the termination. In the event that (i) Provider is no longer
legally able to provide settlement services or to receive payment in the
manners contemplated, longer legally able to provide settlement services or to
receive payment in the manners contemplated, or (ii) a change occurs in state
of Federal law which, in either Provider's or Lender's reasonable opinion,
substantially increases costs or obligations in performing this Agreement, or
prohibits the transactions contemplated in this Agreement, the parties agree to
engage in good faith discussions with the goal of determining modifications of
the arrangements established by this Agreement that will allow the business
goals to be achieved in a manner reasonably satisfactory to both parties. In
the event no such agreement can be reached with respect to modifications,
Provider and Lender shall have the right to terminate this Agreement and will
have no further obligation or liability hereunder.
9. Lender represents and warrants that it is fully licensed, qualified to
conduct business and is good standing in the state(s) in which it conducts
business.
10. Provider represents and warrants that it is fully licensed, qualified to
conduct business and is good standing in the state(s) in which it conducts
business.
11. All correspondence and notices to Provider, and any payments for service
fees shall be directed to: XXXXXXXX X. XXXXX OF TRANSAMERICA HOME LOAN at the
following address 0000 X. Xxxxx Xx. Xxx X-0000 Xxx Xxxxxxx, XX 00000.
12. All correspondence and notices to Lender shall be directed to: Business
Development, C/O Mego Mortgage Corporation, 0000 Xxxxxxxx Xxxxxx, Xxxxx Xxxxx,
Xxxxxxx, Xxxxxxx 00000.
Lender: Mego Mortgage Corporation Provider: Transamerica Home Loan
By:/s/ Xxxxxxx X. Xxxxx By: /s/ Xxxxxxxx X. Xxxxx
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(Authorized Officer) (Authorized Officer)
Xxxxxxx X. Xxxxx Xxxxxxxx X. Xxxxx
President & CEO Sr. Vice President
Strategic Marketing
