Exhibit 10.3


 


EXECUTION VERSION


 






 



 


GUARANTY


 


by


 


private
national mortgage


acceptance company, llc, as guarantor


 


 


 


 


 


Dated as of April 28, 2021


 





 



 






     


     


    

 


TABLE OF CONTENTS


 


Page


 


	1.	Defined Terms	1
	 	 	 
	2.	Guaranty	2
	 	 	 
	3.	Right of Set-off	2
	 	 	 
	4.	Subrogation	3
	 	 	 
	5.	Amendments, etc. with Respect to the Obligations	3
	 	 	 
	6.	Guaranty Absolute and Unconditional	4
	 	 	 
	7.	Reinstatement	5
	 	 	 
	8.	Payments	5
	 	 	 
	9.	Event of Default	5
	 	 	 
	10.	Severability	5
	 	 	 
	11.	Headings	5
	 	 	 
	12.	No Waiver; Cumulative Remedies	6
	 	 	 
	13.	Waivers and Amendments; Successors and Assigns; Governing Law	6
	 	 	 
	14.	Notices	6
	 	 	 
	15.	Governing Law; Jurisdiction; Waivers	6
	 	 	 
	16.	Integration; Counterparts	7
	 	 	 
	17.	Third Party Beneficiaries	8
	 	 	 
	18.	Acknowledgments	8
	 	 	 
	19.	Events of Default	8



 




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GUARANTY


 


This GUARANTY, dated as of
April 28, 2021 (as may be amended, restated, supplemented or otherwise modified from time to time, this “Guaranty”),
is made by Private national mortgage acceptance company, llc (“Guarantor”),
in favor of PFSI ISSUER TRUST – FMSR, a statutory trust organized under the laws of Delaware (the “Buyer”).


 


RECITALS


 


WHEREAS,
pursuant to the Master Repurchase Agreement, dated as of April 28, 2021 (as may be amended, restated, supplemented or otherwise
modified from time to time, the “PC Repurchase Agreement”), among PENNYMAC LOAN SERVICES, LLC (the “Seller”),
Guarantor and Buyer, Buyer has agreed from time to time to enter into Transactions with Seller. It is a condition precedent to the obligation
of Buyer to enter into Transactions with Seller under the PC Repurchase Agreement that Guarantor shall have executed and delivered this
Guaranty to Buyer;


 


WHEREAS, as a condition precedent
to entering into the PC Repurchase Agreement, the Guarantor is required to execute and deliver this Guaranty;


 


WHEREAS, the Guarantor will
receive a benefit, either directly or indirectly from the Seller for entering into this Guaranty; and


 


WHEREAS, pursuant to the Base
Indenture, dated as of April 28, 2021, among the Buyer, as issuer, the Seller, as servicer and as administrator, Citibank, N.A.,
as indenture trustee (in such capacity, the “Indenture Trustee”), calculation agent, paying agent and securities intermediary
and Credit Suisse First Boston Mortgage Capital LLC, as an administrative agent (the “Administrative Agent”) (together
with all schedules and exhibits thereto, as may be amended, restated, supplemented or otherwise modified from time to time, the “Base
Indenture,” and collectively with each supplement to the Base Indenture executed and delivered in conjunction with the issuance
of the related Series of Notes, including the schedules and exhibits thereto, the “Indenture”), Buyer will grant
to the Indenture Trustee for the benefit and security of the holders of the notes issued under the Indenture (the “Noteholders”)
and the Indenture Trustee, in its individual capacity (the Noteholder and the Indenture Trustee, together, the “Secured Parties”),
a security interest in all its right, title and interest in and to the PC Repurchase Agreement and this Guaranty.


 


NOW, THEREFORE, in consideration
of the foregoing premises, to induce Buyer to enter into the PC Repurchase Agreement and to enter into Transactions thereunder, Guarantor
hereby agrees with Buyer, as follows:


 


1.            Defined
Terms. (a) Unless otherwise defined herein, terms which are defined in the PC Repurchase Agreement and used herein are so used
as so defined.


 






     


     


    

 


(b)         For
purposes of this Guaranty, “Obligations” shall mean all obligations and liabilities of Seller to Buyer, whether direct
or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, or out of or
in connection with the PC Repurchase Agreement and any other Program Agreements and any other document made, delivered or given in connection
therewith or herewith, whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses (including,
without limitation, all fees and disbursements of counsel to Buyer that are required to be paid by Seller pursuant to the terms of the
Program Agreements and costs of enforcement of this Guaranty reasonably incurred) or otherwise.


 


2.           Guaranty.
(a) Guarantor hereby unconditionally and irrevocably guarantees to Buyer the prompt and complete payment and performance by Seller
when due (whether at the stated maturity, by acceleration or otherwise) of the Obligations.


 


(b)          Guarantor
further agrees to pay any and all expenses (including, without limitation, all fees and disbursements of counsel) which may be paid or
incurred by Buyer in enforcing, or obtaining advice of counsel in respect of, any rights with respect to, or collecting, any or all of
the Obligations and/or enforcing any rights with respect to, or collecting against, Guarantor under this Guaranty. This Guaranty shall
remain in full force and effect until the later of (i) the termination of the PC Repurchase Agreement and (ii) the Obligations
are paid in full, notwithstanding that from time to time prior thereto Seller may be free from any Obligations.


 


(c)          No
payment or payments made by Seller or any other Person or received or collected by Buyer from Seller or any other Person by virtue of
any action or proceeding or any set-off or appropriation or application, at any time or from time to time, in reduction of or in payment
of the Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of Guarantor hereunder which shall, notwithstanding
any such payment or payments, remain liable for the amount of the outstanding Obligations until the outstanding Obligations are paid
in full.


 


(d)         Guarantor
agrees that whenever, at any time, or from time to time, Guarantor shall make any payment to Buyer on account of Guarantor’s liability
hereunder, Guarantor will notify Buyer in writing that such payment is made under this Guaranty for such purpose.


 


3.           Right
of Set-off. Buyer is hereby irrevocably authorized at any time and from time to time without notice to Guarantor, any such notice
being hereby waived by Guarantor, to set-off and appropriate and apply any and all monies and other property of Guarantor, deposits (general
or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in
each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by Buyer of any Affiliate
thereof to or for the credit or the account of Guarantor, or any part thereof in such amounts as Buyer may elect, on account of the Obligations
and liabilities of Guarantor hereunder and claims of every nature and description of Buyer against Guarantor, in any currency, whether
arising hereunder, under the PC Repurchase Agreement or otherwise, as Buyer may elect, whether or not Buyer has made any demand for payment
and although such Obligations and liabilities and claims may be contingent or unmatured. Buyer shall notify Guarantor promptly of any
such set-off and the application made by Buyer, provided that the failure to give such notice shall not affect the validity of such set-off
and application. The rights of Buyer under this paragraph are in addition to other rights and remedies (including, without limitation,
other rights of set-off) which Buyer may have.


 






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4.           Subrogation.
Notwithstanding any payment or payments made by Guarantor hereunder or any set-off or application of funds of Guarantor by Buyer, Guarantor
shall not be entitled to be subrogated to any of the rights of Buyer against Seller or any other guarantor or any collateral security
or guarantee or right of offset held by Buyer for the payment of the Obligations, nor shall Guarantor seek or be entitled to seek any
contribution or reimbursement from Seller or any other guarantor in respect of payments made by Guarantor hereunder, until all amounts
owing to Buyer by Seller on account of the Obligations are paid in full and the PC Repurchase Agreement is terminated. If any amount
shall be paid to Guarantor on account of such subrogation rights at any time when all of the Obligations shall not have been paid in
full, such amounts shall be held by Guarantor for the benefit of Buyer, segregated from other funds of Guarantor, and shall, forthwith
upon receipt by Guarantor, be turned over to Buyer in the exact form received by Guarantor (duly indorsed by Guarantor to Buyer, if required),
to be applied against the Obligations, whether matured or unmatured, in such order as Buyer may determine.


 


5.           Amendments, etc.
with Respect to the Obligations. Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights
against Guarantor, and without notice to or further assent by Guarantor, any demand for payment of any of the Obligations made by Buyer
may be rescinded by Buyer, and any of the Obligations continued, and the Obligations, or the liability of any other party upon or for
any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in
whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by Buyer, and the
PC Repurchase Agreement, and the other Program Agreements and any other document in connection therewith may be amended, modified, supplemented
or terminated, in whole or in part, pursuant to its terms and as Buyer may deem advisable from time to time, and any collateral security,
guarantee or right of offset at any time held by Buyer for the payment of the Obligations may be sold, exchanged, waived, surrendered
or released. Buyer shall have no obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the
Obligations or for this Guaranty or any property subject thereto. When making any demand hereunder against Guarantor, Buyer may, but
shall be under no obligation to, make a similar demand on Seller and any failure by Buyer to make any such demand or to collect any payments
from Seller or any release of Seller shall not relieve Guarantor of its obligations or liabilities hereunder, and shall not impair or
affect the rights and remedies, express or implied, or as a matter of law, of Buyer against Guarantor. For the purposes hereof “demand”
shall include, but is not limited to, the commencement and continuance of any legal proceedings.


 






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6.           Guaranty
Absolute and Unconditional. (a) Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of
the Obligations and notice of or proof of reliance by Buyer upon this Guaranty or acceptance of this Guaranty; the Obligations, and any
of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived in reliance
upon this Guaranty; and all dealings between Seller or Guarantor, on the one hand, and Buyer, on the other, shall likewise be conclusively
presumed to have been had or consummated in reliance upon this Guaranty. Guarantor waives diligence, presentment, protest, demand for
payment and notice of default or nonpayment to or upon Seller or the Guaranty with respect to the Obligations. This Guaranty shall be
construed as a continuing, absolute and unconditional guarantee of payment without regard to (i) the validity or enforceability
of the PC Repurchase Agreement, the other Program Agreements, any of the Obligations or any collateral security therefor or guarantee
or right of offset with respect thereto at any time or from time to time held by Buyer, (ii) any defense, set-off or counterclaim
(other than a defense of payment or performance) which may at any time be available to or be asserted by Seller against Buyer, or (iii) any
other circumstance whatsoever (with or without notice to or knowledge of Seller or Guarantor) which constitutes, or might be construed
to constitute, an equitable or legal discharge of Seller for the Obligations, or of Guarantor under this Guaranty, in bankruptcy or in
any other instance. When pursuing its rights and remedies hereunder against Guarantor, Buyer may, but shall be under no obligation, to
pursue such rights and remedies that they may have against Seller or any other Person or against any collateral security or guarantee
for the Obligations or any right of offset with respect thereto, and any failure by Buyer to pursue such other rights or remedies or
to collect any payments from Seller or any such other Person or to realize upon any such collateral security or guarantee or to exercise
any such right of offset, or any release of Seller or any such other Person or any such collateral security, guarantee or right of offset,
shall not relieve Guarantor of any liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied
or available as a matter of law, of Buyer against Guarantor. This Guaranty shall remain in full force and effect and be binding in accordance
with and to the extent of its terms upon Guarantor and their successors and assigns thereof, and shall inure to the benefit of Buyer,
and successors, indorsees, transferees and assigns, until all the Obligations and the obligations of Guarantor under this Guaranty shall
have been satisfied by payment in full, notwithstanding that from time to time during the term of the PC Repurchase Agreement Seller
may be free from any Obligations.


 


(b)         Without
limiting the generality of the foregoing, Guarantor hereby agrees, acknowledges, and represents and warrants to Buyer as follows:


 


(i)          Guarantor
hereby waives any defense arising by reason of, and any and all right to assert against Buyer any claim or defense based upon, an election
of remedies by Buyer which in any manner impairs, affects, reduces, releases, destroys and/or extinguishes Guarantor’s (x) subrogation
rights, (y) rights to proceed against Seller or any other guarantor for reimbursement or contribution, and/or (z) any other
rights of Guarantor to proceed against Seller, against any other guarantor, or against any other person or security.


 


(ii)          Guarantor
is presently informed of the financial condition of Seller and of all other circumstances which diligent inquiry would reveal and which
bear upon the risk of nonpayment of the Obligations. Guarantor hereby covenants that it will make its own investigation and will continue
to keep itself informed of Seller’s financial condition, the status of other guarantors, if any, of all other circumstances which
bear upon the risk of nonpayment and that it will continue to rely upon sources other than Buyer for such information and will not rely
upon Buyer for any such information. Absent a written request for such information by Guarantor to Buyer, Guarantor hereby waives its
right, if any, to require Buyer to disclose to Guarantor any information which Buyer may now or hereafter acquire concerning such condition
or circumstances including, but not limited to, the release of or revocation by any other guarantor.


 






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(iii)        Guarantor
has independently reviewed the PC Repurchase Agreement and related agreements and has made an independent determination as to the validity
and enforceability thereof, and in executing and delivering this Guaranty to Buyer, Guarantor is not in any manner relying upon the validity,
and/or enforceability, and/or attachment, and/or perfection of any Liens or security interests of any kind or nature granted by Seller
or any other guarantor to Buyer, now or at any time and from time to time in the future.


 


(iv)        Guarantor
is not required to register as an “investment company” under the Investment Company Act of 1940, as amended from time to
time.


 


(c)         Guarantor
hereby covenants that it shall not merge, consolidate or amalgamate itself in a transaction that involves a majority of ownership interests
in the Guarantor, liquidate, wind up or dissolve itself (or suffer any liquidation, winding up or dissolution) or sell all or substantially
all of its assets; provided that Guarantor may merge or consolidate with (i) any wholly owned subsidiary of Guarantor, (ii) any
other Person if Guarantor is the surviving entity, or (iii) with the prior written consent of the Administrative Agent, so long
that, in each case, after giving effect thereto, no Default would exist hereunder.


 


7.           Reinstatement.
This Guaranty shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any
of the Obligations is rescinded or must otherwise be restored or returned by Buyer upon the insolvency, bankruptcy, dissolution, liquidation
or reorganization of Seller or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, Seller or any substantial part of its property, or otherwise, all as though such payments had not been made.


 


8.           Payments.
Guarantor hereby agrees that the Obligations will be paid to Buyer without set-off or counterclaim in U.S. Dollars.


 


9.           Event
of Default. If an Event of Default under the PC Repurchase Agreement shall have occurred and be continuing, Guarantor agrees that,
as between Guarantor and the Buyer, the Obligations may be declared to be due in accordance with the terms of the PC Repurchase Agreement
for purposes of this Guaranty notwithstanding any stay, injunction or other prohibition which may prevent, delay or vitiate any such
declaration as against the Seller and that, in the event of any such declaration (or attempted declaration), such Obligations shall forthwith
become due by Guarantor for purposes of this Guaranty.


 


10.         Severability.
Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.


 


11.         Headings.
The paragraph headings used in this Guaranty are for convenience of reference only and are not to affect the construction hereof or be
taken into consideration in the interpretation hereof.


 






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12.         No
Waiver; Cumulative Remedies. Buyer shall not by any act (except by a written instrument pursuant to Section 13), delay,
indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event
of Default or in any breach of any of the terms and conditions hereof. No failure to exercise, nor any delay in exercising, on the part
of Buyer, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power
or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A
waiver by Buyer of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which Buyer
would otherwise have on any future occasion. The rights and remedies herein provided are cumulative, may be exercised singly or concurrently
and are not exclusive of any rights or remedies provided by law.


 


13.         Waivers
and Amendments; Successors and Assigns; Governing Law. None of the terms or provisions of this Guaranty may be waived, amended, supplemented
or otherwise modified except by a written instrument executed by Guarantor and Buyer, provided that any provision of this Guaranty may
be waived by Buyer in a letter or agreement executed by Buyer or by facsimile or electronic transmission from Buyer to the Guarantor.
This Guaranty shall be binding upon the personal representatives, successors and assigns of Guarantor and shall inure to the benefit
of Buyer and its successors and assigns.


 


14.         Notices.
Notices delivered in connection with this Guaranty shall be given in accordance with Section 10.04 of the PC Repurchase Agreement.


 


15.         Governing
Law; Jurisdiction; Waivers.


 


(a)        THIS
GUARANTY AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO OR IN CONNECTION WITH THIS GUARANTY, THE RELATIONSHIP OF THE
PARTIES HERETO, AND/OR THE INTERPRETATION AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES HERETO WILL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO THE CONFLICT OF LAW PRINCIPLES THEREOF OTHER THAN SECTIONS
5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.


 


(b)         THE
GUARANTOR SUBMITS ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTY, OR FOR RECOGNITION AND ENFORCEMENT
OF ANY JUDGMENT IN RESPECT THEREOF, TO THE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN,
THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF;


 


(c)         THE
GUARANTOR CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND, TO THE EXTENT PERMITTED BY LAW, WAIVES
ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION
OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME;


 






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(d)        THE
GUARANTOR AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED
OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH HEREIN OR AT SUCH OTHER
ADDRESS OF WHICH EACH OTHER PARTY HERETO SHALL HAVE BEEN NOTIFIED IN WRITING, EXCEPT THAT WITH RESPECT TO THE INDENTURE TRUSTEE, CALCULATION
AGENT, PAYING AGENT AND SECURITIES INTERMEDIARY, SERVICE OF PROCESS MAY ONLY BE MADE AS REQUIRED BY APPLICABLE LAW;


 


(e)           THE
GUARANTOR AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL
LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION; AND


 


(f)          THE
GUARANTOR WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATING TO THIS GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY.


 


16.          Integration;
Counterparts. This Guaranty may be executed in any number of counterparts, each of which when so executed shall be deemed to be an
original and all of which when taken together shall constitute one and the same instrument. The words “executed,” “signed,”
 “signature,” and words of like import as used above and elsewhere in this Guaranty or in any other certificate, agreement
or document related to this transaction shall include, in addition to manually executed signatures, images of manually executed signatures
transmitted by facsimile or other electronic format (including, without limitation, “pdf,” “tif” or “jpg”)
and other electronic signatures (including, without limitation, any electronic sound, symbol, or process, attached to or logically associated
with a contract or other record and executed or adopted by a person with the intent to sign the record). The use of electronic signatures
and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received,
or stored by electronic means) shall be of the same legal effect, validity, enforceability and admissibility as a manually executed signature
or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the federal Electronic Signatures
in Global and National Commerce Act, the New York State Electronic Signatures and Records Act and any other applicable law, including,
without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code. Delivery of an executed
counterpart of a signature page to this Guaranty by facsimile or other electronic means shall be effective as delivery of a manually
executed counterpart of this Guaranty. Each party to this Guaranty hereby consents to the use of any secure third party electronic signature
capture service providers (including, without limitation, DocuSign), as long as such service providers use system logs and audit trails
that establish a temporal and process link between the presentation of identity documents and the electronic signing, together with identifying
information that can be used to verify the electronic signature and its attribution to the signer’s identity and evidence of the
signer’s agreement to conduct the transaction electronically and of the signer’s execution of each electronic signature.


 






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17.         Third
Party Beneficiaries. Each of the Secured Parties and the Administrative Agent shall be a third party beneficiary of this Guaranty
and shall be entitled to enforce the Guarantor’s Obligations hereunder to the same extent as if it was a signatory hereto.


 


 18.         Acknowledgments. Guarantor hereby acknowledges that:




 


(a)         Guarantor
has been advised by counsel in the negotiation, execution and delivery of this Guaranty and the other Program Agreements;


 


(b)         Buyer
does not have any fiduciary relationship to Guarantor, Guarantor does not have any fiduciary relationship to Buyer and the relationship
between Buyer and Guarantor is solely that of surety and creditor;


 


 (c)          no joint venture exists between Buyer and Guarantor or among Buyer, Seller and Guarantor;




 


(d)         this
Guaranty is “a security agreement or arrangement or other credit enhancement” that is “related to” and provided
 “in connection with” the PC Repurchase Agreement and each Transaction thereunder and is within the meaning of Sections 101(38A)(A) and
741(7)(A)(xi) of the Bankruptcy Reform Act of 1978, 11 U.S.C. §§ 101 et seq., as amended (the “Bankruptcy
Code”) and is, therefore to the extent of damages in connection with the PC Repurchase Agreement, measured in accordance with
Section 562 of the Bankruptcy Code (i) a “securities contract” as that term is defined in Section 741(7)(A)(xi) of
the Bankruptcy Code and (ii) a “master netting agreement” as that term is defined in Section 101(38A) of the Bankruptcy
Code; and


 


(e)         Buyer’s
right to cause the termination, liquidation or acceleration of, or to offset or net termination values, payment amounts or other transfer
obligations arising under or in connection with the PC Repurchase Agreement and this Guaranty is in each case a contractual right to
cause the termination, liquidation or acceleration of, or to offset or net termination values, payment amounts or other transfer obligations
arising under or in connection with this Guaranty as described in Sections 362(b)(6), 362(b)(27), 555 and/or 561 of the Bankruptcy Code.


 


19.         Events
of Default. Each of the following events or circumstances shall constitute an “Event of Default” under this Guaranty:


 


(a)         For
any reason, this Guaranty at any time shall not be in full force and effect in all material respects or shall not be enforceable in all
material respects in accordance with its terms, or Guarantor or any Affiliate of Guarantor shall seek to disaffirm, terminate, limit
or reduce its obligations hereunder.


 






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(b)         A
material breach by Guarantor of the representation or warranty in Section 6(b)(iv), if not cured within thirty (30) days
following the occurrence of such breach.


 


(c)          Breach
of the covenant in Section 6(c).


 


[Signature page follows]


 




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IN WITNESS WHEREOF, the undersigned
has caused this Guaranty to be duly executed and delivered as of the date first above written.


 


	 	PRIVATE NATIONAL MORTGAGE ACCEPTANCE COMPANY, LLC, as Guarantor
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 	/s/ Pamela Marsh
	 	 	 	Name: Pamela Marsh
	 	 	 	Title: Senior Managing Director and Treasurer



 


Signature Page to PC Repo Guaranty


PFSI ISSUER TRUST – FMSR