WITH RESPECT TO PLEDGED MORTGAGES WHICH HAVE
ALREADY BEEN PLEDGED AS COLLATERAL HEREUNDER, IF ANY SUCH DEFAULT OR EVENT HAS
OCCURRED, THE COMPANY WILL PROMPTLY NOTIFY THE LENDER AND THE SAME SHALL NOT
HAVE CONTINUED FOR MORE THAN SIXTY (60) DAYS.
(E)
THE COMPANY HAS COMPLIED WITH ALL LAWS, RULES AND REGULATIONS IN
RESPECT OF THE FHA INSURANCE OR VA GUARANTEE OF EACH MORTGAGE LOAN INCLUDED IN
THE PLEDGED MORTGAGES DESIGNATED BY THE COMPANY AS AN FHA INSURED OR VA
GUARANTEED MORTGAGE LOANS, AND SUCH INSURANCE OR GUARANTEE IS IN FULL FORCE AND
EFFECT.
ALL SUCH FHA INSURED
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AND VA GUARANTEED MORTGAGE LOANS COMPLY IN ALL RESPECTS WITH ALL APPLICABLE
REQUIREMENTS FOR PURCHASE UNDER THE FNMA STANDARD FORM OF SELLING CONTRACT FOR
FHA INSURED AND VA GUARANTEED LOANS AND ANY SUPPLEMENT THERETO THEN IN EFFECT.
(F)
ALL FIRE AND CASUALTY POLICIES COVERING MORTGAGED PROPERTY
ENCUMBERED BY A PLEDGED MORTGAGE (1) NAME THE COMPANY AND ITS SUCCESSORS AND
ASSIGNS AS THE INSURED UNDER A STANDARD MORTGAGEE CLAUSE, (2) ARE AND WILL
CONTINUE TO BE IN FULL FORCE AND EFFECT, AND (3) AFFORD AND WILL CONTINUE TO
AFFORD INSURANCE AGAINST FIRE AND SUCH OTHER RISKS AS ARE USUALLY INSURED
AGAINST IN THE BROAD FORM OF EXTENDED COVERAGE INSURANCE FROM TIME TO TIME
AVAILABLE, AS WELL AS INSURANCE AGAINST FLOOD HAZARDS IF THE SAME IS REQUIRED BY
FHA OR VA.
(G)
PLEDGED MORTGAGES ENCUMBERING MORTGAGED PROPERTY LOCATED IN A
SPECIAL FLOOD HAZARD AREA DESIGNATED AS SUCH BY THE SECRETARY OF HUD ARE AND
SHALL CONTINUE TO BE COVERED BY SPECIAL FLOOD INSURANCE UNDER THE NATIONAL FLOOD
INSURANCE PROGRAM.
(H)
EACH FHA INSURED MORTGAGE LOAN PLEDGED HEREUNDER MEETS ALL
APPLICABLE GOVERNMENTAL REQUIREMENTS FOR SUCH INSURANCE.
EACH MORTGAGE LOAN,
AGAINST WHICH AN ADVANCE IS MADE ON THE BASIS OF A PURCHASE COMMITMENT MEETS ALL
REQUIREMENTS OF SUCH PURCHASE COMMITMENT.
THE COMPANY SHALL ASSURE THAT
MORTGAGE LOANS PLEDGED PURSUANT TO THIS AGREEMENT AND INTENDED TO BE USED IN THE
FORMATION OF MORTGAGE-BACKED SECURITIES SHALL COMPLY, OR PRIOR TO THE FORMATION
OF ANY SUCH MORTGAGE-BACKED SECURITY, SHALL COMPLY WITH THE REQUIREMENTS OF THE
GOVERNMENTAL INSTRUMENTALITY, DEPARTMENT OR AGENCY GUARANTEEING SUCH
MORTGAGE-BACKED SECURITY.
(I)
FOR PLEDGED MORTGAGES WHICH WILL BE USED TO SECURE GNMA
MORTGAGE-BACKED SECURITIES, THE COMPANY HAS RECEIVED FROM GNMA A CONFIRMATION
NOTICE OR CONFIRMATION NOTICES FOR REQUEST ADDITIONAL COMMITMENT AUTHORITY AND
FOR REQUEST POOL NUMBERS, AND THERE REMAINS AVAILABLE THEREUNDER A COMMITMENT ON
THE PART OF GNMA SUFFICIENT TO PERMIT THE ISSUANCE OF GNMA MORTGAGE-BACKED
SECURITIES IN AN AMOUNT AT LEAST EQUAL TO THE AMOUNT OF SUCH PLEDGED MORTGAGES
DESIGNATED BY THE COMPANY AS THE MORTGAGE LOANS TO BE USED TO
SECURE SUCH GNMA
MORTGAGE-BACKED SECURITIES; EACH SUCH CONFIRMATION NOTICE IS IN FULL FORCE AND
EFFECT; EACH OF SUCH PLEDGED MORTGAGES HAS BEEN ASSIGNED BY THE COMPANY TO ONE
OF SUCH POOL NUMBERS AND A PORTION OF THE AVAILABLE GNMA COMMITMENT HAS BEEN
ALLOCATED THERETO BY THE COMPANY, IN AN AMOUNT AT LEAST EQUAL TO THE PRINCIPAL
AMOUNT OF EACH MORTGAGE NOTE
SECURED