A MARGIN DEFICIT TO OCCUR, THEN SELLER MAY TRANSFER TO BUYER
CASH IN AN AMOUNT AT LEAST EQUAL TO THE MARGIN DEFICIT, PROVIDED THAT SUCH CASH
IS SUFFICIENT TO ENSURE SUCH PURCHASED MORTGAGE LOAN IS FULLY COMPLIANT AS A
MEDIUM PURCHASE PRICE MORTGAGE LOANS OR A LOW PURCHASE PRICE MORTGAGE LOAN, AS
APPLICABLE.
7.
INCOME PAYMENTS
A.
IF INCOME IS PAID IN RESPECT OF ANY PURCHASED MORTGAGE LOAN DURING THE TERM
OF A TRANSACTION, SUCH INCOME SHALL BE THE PROPERTY OF BUYER.
NOTWITHSTANDING
THE FOREGOING, AND PROVIDED NO EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING,
BUYER AGREES THAT IF A THIRD-PARTY SERVICER IS IN PLACE FOR ANY PURCHASED
MORTGAGE LOANS, SUCH SERVICER SHALL DEPOSIT SUCH INCOME TO THE COLLECTION
ACCOUNT.
EACH SELLER SHALL DEPOSIT ALL INCOME RECEIVED IN ITS CAPACITY AS
SERVICER OF ANY PURCHASED MORTGAGE LOANS OR PURSUANT TO THE PRECEDING SENTENCE
TO THE COLLECTION ACCOUNT IN ACCORDANCE WITH SECTION 12(C) HEREOF.
B.
PROVIDED NO EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING, ON EACH PRICE
DIFFERENTIAL PAYMENT DATE, THE SELLERS SHALL REMIT TO BUYER AN AMOUNT EQUAL TO
THE PRICE DIFFERENTIAL OUT OF THE INTEREST PORTION OF THE INCOME PAID IN RESPECT
TO THE PURCHASED MORTGAGE LOANS FOR THE PRECEDING MONTH IN ACCORDANCE WITH
SECTION 5 OF THIS AGREEMENT.
PROVIDED NO EVENT OF DEFAULT HAS OCCURRED AND IS
CONTINUING, UPON TERMINATION OF ANY TRANSACTION AND ON EACH PRICE DIFFERENTIAL
PAYMENT DATE, TO THE EXTENT THAT THERE IS ANY EXCESS INCOME AFTER REPAYMENT OF
ALL AMOUNTS TO BE TRANSFERRED TO BUYER BY THE SELLERS, BUYER SHALL PAY THE
EXCESS TO THE SELLERS.
C.
IN THE EVENT THAT AN EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING,
NOTWITHSTANDING ANY PROVISION SET FORTH HEREIN, THE SELLERS SHALL REMIT TO BUYER
ALL INCOME RECEIVED WITH RESPECT TO EACH PURCHASED MORTGAGE LOAN ON THE RELATED
PRICE DIFFERENTIAL PAYMENT DATE OR ON SUCH OTHER DATE OR DATES AS BUYER NOTIFIES
SELLER IN WRITING.
D.
NOTWITHSTANDING ANY PROVISION TO THE CONTRARY IN THIS SECTION 7, WITHIN TWO
(2) BUSINESS DAYS OF RECEIPT BY ANY SELLER OF ANY PREPAYMENT OF PRINCIPAL IN
FULL, WITH RESPECT TO A PURCHASED MORTGAGE LOAN, THE SELLERS SHALL REMIT SUCH
AMOUNT TO BUYER AND BUYER SHALL IMMEDIATELY APPLY ANY SUCH AMOUNT RECEIVED BY
BUYER TO REDUCE THE AMOUNT OF THE REPURCHASE PRICE DUE UPON TERMINATION OF THE
RELATED TRANSACTION.
26
E.
NOTWITHSTANDING ANYTHING TO THE CONTRARY SET FORTH HEREIN, UPON THE
OCCURRENCE OF AN EVENT OF DEFAULT AND FURTHER UPON WRITTEN NOTICE BY BUYER TO
THE SELLERS, THE SELLERS SHALL REMIT TO BUYER ALL COLLECTIONS RECEIVED BY
SERVICER OR ANY SELLER ON THE PURCHASED MORTGAGE LOANS IN ACCORDANCE WITH
BUYER'S DIRECTIONS NO LATER THAN THE DAY ON WHICH AGGREGATE COLLECTIONS OF
PRINCIPAL AND INTEREST (EXCLUDING PRINCIPAL PREPAYMENTS) ON THE PURCHASED
MORTGAGED LOANS REACHES AN AMOUNT TO BE INDICATED BY BUYER IN ITS SOLE
DISCRETION.
8.
SECURITY INTEREST
Although the parties intend that all Transactions hereunder be sales and
purchases and not financings, in the event any such Transactions are