LOANS.
THE SELLER SHALL BE ENTITLED TO REQUEST A DRAWDOWN OF THE BUYDOWN AMOUNT OR
REMIT ADDITIONAL FUNDS TO BE ADDED TO THE BUYDOWN AMOUNT IN INCREMENTS OF
$100,000 NO MORE THAN ONE TIME PER WEEK.
WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, IN THE EVENT THAT A MARGIN CALL OR OTHER DEFAULT EXISTS, THE BUYER
SHALL BE ENTITLED TO USE ANY OR ALL OF THE BUYDOWN AMOUNT TO CURE SUCH
CIRCUMSTANCE OR OTHERWISE EXERCISE REMEDIES AVAILABLE TO THE BUYER WITHOUT PRIOR
NOTICE TO, OR CONSENT FROM, THE SELLER.
6.
MARGIN MAINTENANCE
A.
IF AT ANY TIME THE MARKET VALUE OF ANY PURCHASED MORTGAGE LOAN SUBJECT TO A
TRANSACTION IS LESS THAN BUYER'S MARGIN AMOUNT FOR SUCH TRANSACTION (A "MARGIN
DEFICIT"), THEN BUYER MAY BY NOTICE TO ANY SELLER GIVEN PURSUANT TO SECTION 20
REQUIRE SELLERS TO TRANSFER TO BUYER CASH IN AN AMOUNT AT LEAST EQUAL TO THE
MARGIN DEFICIT (SUCH REQUIREMENT, A "MARGIN CALL").
B.
ANY NOTICE GIVEN PURSUANT TO SECTION 6(A) BEFORE 10:00 A.M. NEW YORK TIME ON
A BUSINESS DAY SHALL BE MET, AND THE RELATED MARGIN CALL SATISFIED, NO LATER
THAN 5:00 P.M. NEW YORK TIME ON SUCH BUSINESS DAY; NOTICE GIVEN AFTER 10:00 A.M.
NEW YORK TIME ON A BUSINESS DAY SHALL BE MET, AND THE RELATED MARGIN CALL
SATISFIED, NO LATER THAN 5:00 P.M. NEW YORK TIME ON THE FOLLOWING BUSINESS DAY
(THE FOREGOING TIME REQUIREMENTS FOR SATISFACTION OF A MARGIN CALL ARE REFERRED
TO AS THE "MARGIN DEADLINES").
THE FAILURE OF BUYER, ON ANY ONE OR MORE
OCCASIONS, TO EXERCISE ITS RIGHTS HEREUNDER, SHALL NOT CHANGE OR ALTER THE TERMS
AND CONDITIONS TO WHICH THIS AGREEMENT IS SUBJECT OR LIMIT THE RIGHT OF BUYER TO
DO SO AT A LATER DATE.
THE SELLERS AND BUYER EACH AGREE THAT A FAILURE OR DELAY
BY BUYER TO EXERCISE ITS RIGHTS HEREUNDER SHALL NOT LIMIT OR WAIVE BUYER'S
RIGHTS UNDER THIS AGREEMENT OR OTHERWISE EXISTING BY LAW OR IN ANY WAY CREATE
ADDITIONAL RIGHTS FOR THE SELLERS.
C.
IN THE EVENT THAT A MARGIN DEFICIT EXISTS WITH RESPECT TO ANY PURCHASED
MORTGAGE LOAN, BUYER MAY RETAIN ANY FUNDS RECEIVED BY IT TO WHICH THE SELLERS
WOULD OTHERWISE BE ENTITLED HEREUNDER UP TO AN AMOUNT NOT TO EXCEED THE MARGIN
DEFICIT AND UPON PROVIDING NOTICE TO THE SELLERS, WHICH FUNDS (I) SHALL BE HELD
BY BUYER AGAINST THE RELATED MARGIN DEFICIT AND (II) MAY BE APPLIED BY BUYER
AGAINST ANY PURCHASED MORTGAGE LOAN FOR WHICH THE RELATED MARGIN DEFICIT REMAINS
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OTHERWISE UNSATISFIED.
NOTWITHSTANDING THE FOREGOING, THE BUYER RETAINS THE
RIGHT, IN ITS SOLE DISCRETION, TO MAKE A MARGIN CALL IN ACCORDANCE WITH THE
PROVISIONS OF THIS SECTION 6 TO THE EXTENT THAT BUYER HAS NOT EXERCISED ITS
RIGHTS UNDER THIS SUBSECTION (C).
D.
NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, IF A MARGIN DEFICIT OCCURS
WITH RESPECT TO A MEDIUM PURCHASE PRICE MORTGAGE LOAN OR A LOW PURCHASE PRICE
MORTGAGE LOAN, WHICH, IF CONSIDERED TO BE A HIGH PURCHASE PRICE MORTGAGE LOAN,
WOULD NOT CAUSE