AND HOLD THE LENDER HARMLESS FROM
AND AGAINST ANY LOSS, INCLUDING REASONABLE ATTORNEYS' FEES AND COSTS,
ATTRIBUTABLE TO THE FAILURE OF A TITLE INSURANCE COMPANY, AGENT OR ATTORNEY TO
COMPLY WITH THE DISBURSEMENT OR INSTRUCTION LETTER OR LETTERS OF THE COMPANY OR
OF THE LENDER RELATING TO ANY MORTGAGE LOAN.
THE LENDER SHALL HAVE THE RIGHT TO
PRE-APPROVE THE CLOSING INSTRUCTIONS OF THE COMPANY TO THE TITLE INSURANCE
COMPANY, AGENT OR ATTORNEY IN ANY CASE WHERE THE MORTGAGE LOAN TO BE CREATED AT
SETTLEMENT IS INTENDED TO BE WAREHOUSED BY THE COMPANY PURSUANT HERETO.
6.10
OTHER LOAN OBLIGATIONS.
PERFORM ALL OBLIGATIONS UNDER THE TERMS OF
EACH LOAN AGREEMENT, NOTE, MORTGAGE, SECURITY AGREEMENT OR DEBT INSTRUMENT BY
WHICH THE COMPANY IS BOUND OR TO WHICH ANY OF ITS PROPERTY IS SUBJECT, AND
PROMPTLY NOTIFY THE LENDER IN WRITING OF A DECLARED DEFAULT UNDER OR THE
TERMINATION, CANCELLATION, REDUCTION OR NON-RENEWAL OF ANY OF ITS OTHER LINES OF
CREDIT OR FINANCING AGREEMENTS WITH ANY OTHER LENDER.
EXHIBIT "B" HERETO IS A
TRUE AND COMPLETE LIST OF ALL SUCH LINES OF CREDIT OR FINANCING AGREEMENTS AS OF
THE DATE HEREOF.
6.11
USE OF PROCEEDS OF ADVANCES.
USE THE PROCEEDS OF EACH ADVANCE
SOLELY FOR THE PURPOSE OF FINANCING OR PURCHASING ELIGIBLE MORTGAGE LOANS.
6.12
SPECIAL AFFIRMATIVE COVENANTS CONCERNING COLLATERAL.
(A)
WARRANT AND DEFEND THE RIGHT, TITLE AND INTEREST OF THE LENDER IN
AND TO THE COLLATERAL AGAINST THE CLAIMS AND DEMANDS OF ALL PERSONS WHOMSOEVER.
(B)
SERVICE OR CAUSE TO BE SERVICED ALL PLEDGED MORTGAGES IN
ACCORDANCE WITH THE STANDARD REQUIREMENTS OF THE ISSUERS OF PURCHASE COMMITMENTS
COVERING THE SAME AND ALL APPLICABLE FHA AND VA REQUIREMENTS, INCLUDING WITHOUT
LIMITATION TAKING ALL ACTIONS NECESSARY TO ENFORCE THE OBLIGATIONS OF THE
OBLIGORS UNDER SUCH MORTGAGE LOANS.
THE COMPANY SHALL SERVICE OR CAUSE TO BE
SERVICED ALL MORTGAGE LOANS BACKING PLEDGED SECURITIES IN ACCORDANCE WITH
APPLICABLE GOVERNMENTAL REQUIREMENTS AND ISSUERS OF PURCHASE COMMITMENTS
COVERING THE SAME.
THE COMPANY SHALL HOLD ALL ESCROW FUNDS COLLECTED IN RESPECT
OF PLEDGED MORTGAGES AND MORTGAGE LOANS BACKING PLEDGED SECURITIES IN TRUST,
WITHOUT COMMINGLING THE SAME WITH NON-CUSTODIAL FUNDS, AND APPLY THE SAME FOR
THE PURPOSES FOR WHICH SUCH FUNDS WERE COLLECTED.
(C)
EXECUTE AND DELIVER TO THE LENDER SUCH UNIFORM COMMERCIAL CODE
FINANCING STATEMENTS WITH RESPECT TO THE COLLATERAL AS THE LENDER MAY REQUEST.
THE COMPANY SHALL ALSO EXECUTE AND DELIVER TO THE LENDER SUCH FURTHER
INSTRUMENTS OF SALE, PLEDGE OR ASSIGNMENT OR TRANSFER, AND SUCH POWERS OF
ATTORNEY, AS REQUIRED BY THE LENDER
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TO SECURE THE COLLATERAL, AND SHALL DO AND PERFORM ALL MATTERS AND THINGS
NECESSARY OR DESIRABLE TO BE DONE OR OBSERVED, FOR THE PURPOSE OF EFFECTIVELY
CREATING, MAINTAINING AND PRESERVING THE SECURITY AND BENEFITS INTENDED TO BE
AFFORDED THE LENDER UNDER THIS AGREEMENT.
THE LENDER SHALL HAVE ALL THE RIGHTS
AND REMEDIES OF A SECURED PARTY UNDER THE UNIFORM COMMERCIAL CODE OF TEXAS, OR
ANY OTHER APPLICABLE LAW, IN ADDITION TO ALL RIGHTS PROVIDED FOR HEREIN.
(D)
NOTIFY THE LENDER WITHIN TWO (2)