RESPECT TO ANY PURCHASED
MORTGAGE LOAN AFTER 3:00 P.M. HOUSTON, TEXAS TIME, ON ANY BUSINESS DAY, THEN THE
REPURCHASE DATE WILL OCCUR WITH RESPECT TO SUCH PURCHASED MORTGAGE LOAN ON THE
NEXT BUSINESS DAY.
IN CONNECTION WITH ANY REPURCHASE PURSUANT TO A COMPLETED
REPURCHASE ADVICE, BUYER WILL DEBIT THE FUNDING ACCOUNT AND THE OPERATING
ACCOUNT, IF APPLICABLE, FOR THE AMOUNT OF THE REPURCHASE PRICE (LESS ANY AMOUNT
OF PRICE DIFFERENTIAL TO BE PAID ON THE NEXT REMITTANCE DATE).
WITHOUT LIMITING
SELLER'S OBLIGATIONS HEREUNDER, AT ANY TIME AFTER THE OCCURRENCE AND DURING THE
CONTINUANCE OF A DEFAULT OR AN EVENT OF DEFAULT, SELLER SHALL NOT BE PERMITTED
TO REPURCHASE LESS THAN ALL OF THE PURCHASED MORTGAGE LOANS WITHOUT THE PRIOR
WRITTEN CONSENT OF BUYER.
(G)
RELIANCE.
WITH RESPECT TO ANY TRANSACTION,
BUYER MAY CONCLUSIVELY RELY UPON, AND SHALL INCUR NO LIABILITY TO SELLER IN
ACTING UPON, ANY REQUEST OR OTHER COMMUNICATION THAT BUYER REASONABLY BELIEVES
TO HAVE BEEN GIVEN OR MADE BY A PERSON AUTHORIZED TO ENTER INTO A TRANSACTION ON
SELLER'S BEHALF.
(H)
DEFECTIVE MORTGAGE LOANS.
(I)
IF, AFTER
BUYER PURCHASES A MORTGAGE LOAN, BUYER DETERMINES OR RECEIVES NOTICE (WHETHER
FROM SELLER OR OTHERWISE) THAT A PURCHASED MORTGAGE LOAN IS (OR HAS BECOME) A
DEFECTIVE MORTGAGE LOAN, BUYER SHALL PROMPTLY NOTIFY SELLER, AND SELLER SHALL
REPURCHASE SUCH PURCHASED MORTGAGE LOAN AT THE REPURCHASE PRICE ON THE EARLY
REPURCHASE DATE (AS SUCH TERM IS DEFINED BELOW).
(II)
IF SELLER BECOMES OBLIGATED TO REPURCHASE A MORTGAGE LOAN PURSUANT TO
SUBPARAGRAPH (H)(I) ABOVE, BUYER SHALL PROMPTLY GIVE SELLER NOTICE OF SUCH
REPURCHASE OBLIGATION AND A CALCULATION OF THE REPURCHASE PRICE THEREFOR.
ON
THE SAME DAY SELLER RECEIVES SUCH NOTICE (THE "EARLY REPURCHASE DATE"), SELLER
SHALL REPURCHASE THE DEFECTIVE MORTGAGE LOAN BY MAKING
22
A PAYMENT TO BUYER OF AN AMOUNT EQUAL TO THE REPURCHASE PRICE, AND SHALL SUBMIT
A COMPLETED REPURCHASE ADVICE.
BUYER IS AUTHORIZED TO CHARGE ANY OF SELLER'S
ACCOUNTS FOR SUCH AMOUNT UNLESS THE PARTIES HAVE AGREED IN WRITING TO A
DIFFERENT METHOD OF PAYMENT AND SELLER HAS PAID SUCH AMOUNT BY SUCH AGREED
METHOD.
IF SELLER'S ACCOUNTS DO NOT CONTAIN SUFFICIENT FUNDS TO PAY IN FULL THE
AMOUNT DUE BUYER UNDER THIS SUBPARAGRAPH, OR IF THE AMOUNT DUE IS NOT PAID BY
ANY APPLICABLE ALTERNATIVE METHOD OF PAYMENT PREVIOUSLY AGREED TO BY THE
PARTIES, SELLER SHALL PROMPTLY DEPOSIT FUNDS IN THE OPERATING ACCOUNT SUFFICIENT
TO PAY SUCH AMOUNT DUE BUYER AND NOTIFY BUYER OF SUCH DEPOSIT.
AFTER RECEIPT OF
THE PAYMENT OF THE REPURCHASE PRICE FROM SELLER, BUYER SHALL DELIVER, OR CAUSE
TO BE DELIVERED, TO SELLER ALL DOCUMENTS FOR THE MORTGAGE LOAN PREVIOUSLY
DELIVERED TO BUYER AND TAKE SUCH STEPS AS ARE NECESSARY AND APPROPRIATE TO
EFFECT THE TRANSFER OF THE MORTGAGE LOAN TO SELLER ON THE MERS® SYSTEM.
4.
MARGIN MAINTENANCE
(A)
MARGIN DEFICIT.
IF AT ANY TIME THE SUM OF
THE MARGIN AMOUNTS OF ALL PURCHASED MORTGAGE LOANS IS LESS THAN THE AGGREGATE
PURCHASE PRICE (A "MARGIN DEFICIT"), THEN BUYER, BY NOTICE TO SELLER (A "MARGIN