BEHALF OF THE
SPONSOR, AT NO EXPENSE TO FREDDIE MAC.
IF THE SPONSOR FAILS TO DELIVER TO
FREDDIE MAC ANY ABOVE-REQUIRED DOCUMENTATION, FREDDIE MAC MAY ORDER
RECORDER-CERTIFIED COPIES OF THE MISSING ITEMS, AND THE SPONSOR SHALL REIMBURSE
FREDDIE MAC UPON DEMAND FOR ALL COSTS AND EXPENSES INCURRED BY FREDDIE MAC IN
DOING SO.
Section 2.4
Consequences of Inaccuracies.
(A)
THE SPONSOR SHALL NOTIFY FREDDIE MAC WITHIN 15 DAYS FOLLOWING A
DISCOVERY BY THE SPONSOR OF THE EXISTENCE OF FACTS THAT MAKE AN ASSUMPTION SET
FORTH IN SECTION 2.1 INACCURATE, WHICH FACTS MATERIALLY AND ADVERSELY AFFECT THE
VALUE OF A BOND MORTGAGE OR THE RELATED BONDS (AN "INACCURACY").
FREDDIE MAC
AGREES TO USE ITS BEST EFFORTS TO PROVIDE NOTICE TO THE SPONSOR WITHIN 30 DAYS
FOLLOWING A DISCOVERY BY FREDDIE MAC OF AN INACCURACY; PROVIDED, HOWEVER, THAT
THE FAILURE OF FREDDIE MAC TO SO NOTIFY THE SPONSOR OF SUCH AN INACCURACY SHALL
NOT RELIEVE THE SPONSOR OF ITS OBLIGATION TO CURE SUCH INACCURACY UPON RECEIVING
NOTICE FROM FREDDIE MAC OR OBTAINING KNOWLEDGE THEREOF.
27
(B)
WITHIN 60 DAYS AFTER THE EARLIER OF (I) DISCOVERY BY THE SPONSOR
OF AN INACCURACY, OR (II) THE SPONSOR'S RECEIPT OF NOTICE FROM FREDDIE MAC OF
SUCH INACCURACY, THE SPONSOR SHALL COMMENCE COMMERCIALLY REASONABLE EFFORTS TO
CURE SUCH INACCURACY IN ALL MATERIAL RESPECTS.
(C)
SUBJECT TO THE LAST SENTENCE OF THIS SUBSECTION (C), IF AN
INACCURACY IS NOT CURED BY THE SPONSOR AS AFORESAID WITHIN 60 DAYS AFTER THE
DISCOVERY OR RECEIPT OF NOTICE OF SUCH INACCURACY AS SET FORTH IN SUBSECTION
(B) ABOVE, FREDDIE MAC SHALL HAVE THE RIGHT TO REQUIRE THAT THE SPONSOR, AT THE
SPONSOR'S OPTION, AND WITHIN 5 DAYS OF WRITTEN NOTICE FROM FREDDIE MAC, EITHER:
(I) FUND OR CAUSE THE FUNDING OF THE PURCHASE FROM THE ADMINISTRATOR OF THE
SERIES OF BONDS RELATED TO THE INACCURACY, TO THE EXTENT THAT FREDDIE MAC MAY
EXERCISE ITS PURCHASE RIGHT FOLLOWING THE OCCURRENCE OF A RELEASE EVENT WITH
RESPECT TO THE SAME (WHICH FUNDING BY, OR CAUSED BY, THE SPONSOR SHALL BE
ACCOMPLISHED VIA THE EXERCISE OF SUCH RIGHT OF THE SPONSOR'S IN ACCORDANCE WITH
SECTION 7.3(A) HEREOF AND APPLICABLE PROVISIONS OF THE SERIES CERTIFICATE
AGREEMENT), OR (II) INDEMNIFY AND HOLD HARMLESS FREDDIE MAC FOR ANY COST OR
EXPENSE THAT FREDDIE MAC SUFFERS OR INCURS AS A RESULT OF SUCH INACCURACY AND
ANY LOSS OR DAMAGE THAT FREDDIE MAC SUFFERS OR INCURS AS A DIRECT RESULT OF SUCH
INACCURACY.
ANY SUCH LOSS OR DAMAGE WITH RESPECT TO A MORTGAGED PROPERTY OR THE
RELATED BONDS SHALL BE DETERMINED AT THE TIME OF ASSET RESOLUTION, AND ANY SUCH
COST OR EXPENSE WITH RESPECT TO A MORTGAGED PROPERTY OR THE RELATED BONDS WILL
BE SUBJECT TO INDEMNIFICATION UNDER THIS SUBSECTION 2.4(C) AT THE TIME OF
INCURRENCE.
IF ANY INACCURACY IS A REPURCHASE INACCURACY, THEN FREDDIE MAC MAY
REQUIRE THE SPONSOR TO REPURCHASE THE RELATED BOND THROUGH THE FUNDING OF A
RELEASE EVENT AND THE SPONSOR SHALL NOT HAVE THE AFOREMENTIONED OPTION WITH
RESPECT TO SUCH REPURCHASE