OF ITS OUTSTANDING PRINCIPAL BALANCE AND
DOES NOT MATERIALLY AND ADVERSELY AFFECT THE SECURITY AFFORDED BY THE REAL
PROPERTY, FURNISHINGS, FIXTURES, OR EQUIPMENT SECURING THE LOAN.
(X)
MAINTENANCE OF PROPERTY; INSURANCE.
THE SELLER SHALL KEEP ALL
PROPERTY USEFUL AND NECESSARY IN ITS BUSINESS IN GOOD WORKING ORDER AND
CONDITION.
THE SELLER SHALL MAINTAIN ERRORS AND OMISSIONS INSURANCE AND/OR
MORTGAGE IMPAIRMENT INSURANCE AND BLANKET BOND COVERAGE IN SUCH AMOUNTS AS ARE
IN EFFECT ON THE EFFECTIVE DATE (AS DISCLOSED TO BUYER IN WRITING) AND SHALL NOT
REDUCE SUCH COVERAGE WITHOUT THE WRITTEN CONSENT OF THE BUYER, AND SHALL ALSO
MAINTAIN SUCH OTHER INSURANCE WITH FINANCIALLY SOUND AND REPUTABLE INSURANCE
COMPANIES, AND WITH RESPECT TO PROPERTY AND RISKS OF A CHARACTER USUALLY
MAINTAINED BY ENTITIES ENGAGED IN THE SAME OR SIMILAR BUSINESS SIMILARLY
SITUATED, AGAINST LOSS, DAMAGE AND LIABILITY OF THE KINDS AND IN THE AMOUNTS
CUSTOMARILY MAINTAINED BY SUCH ENTITIES.
(Y)
FURTHER IDENTIFICATION OF PURCHASED ITEMS.
THE SELLER WILL
FURNISH TO THE BUYER FROM TIME TO TIME STATEMENTS AND SCHEDULES FURTHER
IDENTIFYING AND DESCRIBING THE PURCHASED ITEMS AND SUCH OTHER REPORTS IN
CONNECTION WITH THE PURCHASED ITEMS AS THE BUYER MAY
44
REASONABLY REQUEST, ALL IN REASONABLE DETAIL.
(Z)
LOAN DETERMINED TO BE DEFECTIVE.
UPON DISCOVERY BY SELLER OR THE
BUYER OF ANY BREACH OF ANY REPRESENTATION OR WARRANTY LISTED ON SCHEDULE 1
HERETO APPLICABLE TO ANY LOAN, THE PARTY DISCOVERING SUCH BREACH SHALL PROMPTLY
GIVE NOTICE OF SUCH DISCOVERY TO THE OTHER.
(AA)
INTEREST RATE PROTECTION AGREEMENTS.
UPON THE BUYER'S REQUEST, THE
SELLER SHALL DELIVER TO THE BUYER ANY AND ALL INFORMATION RELATING TO INTEREST
RATE PROTECTION AGREEMENTS.
(BB)
CERTIFICATE OF A RESPONSIBLE OFFICER OF THE SELLER.
AT THE TIME
THAT THE SELLERS DELIVER FINANCIAL STATEMENTS TO THE BUYER IN ACCORDANCE WITH
SECTION 13(A) HEREOF, THE SELLERS SHALL FORWARD TO THE BUYER A CERTIFICATE OF A
RESPONSIBLE OFFICER OF AAMES INVESTMENT WHICH DEMONSTRATES THAT AAMES INVESTMENT
IS IN COMPLIANCE WITH THE COVENANTS SET FORTH IN SECTIONS 13(P)-(T) AND (AA).
(CC)
RESERVED.
(DD)
MAINTENANCE OF PAPERS, RECORDS AND FILES.
SELLER SHALL ACQUIRE,
AND SELLER SHALL BUILD, MAINTAIN AND HAVE AVAILABLE, A COMPLETE FILE IN
ACCORDANCE WITH LENDING INDUSTRY CUSTOM AND PRACTICE FOR EACH PURCHASED LOAN.
SELLER WILL MAINTAIN ALL SUCH RECORDS NOT IN THE POSSESSION OF CUSTODIAN IN GOOD
AND COMPLETE CONDITION IN ACCORDANCE WITH INDUSTRY PRACTICES AND PRESERVE THEM
AGAINST LOSS OR DESTRUCTION.
(I)
SELLER SHALL COLLECT AND MAINTAIN OR CAUSE TO BE COLLECTED AND
MAINTAINED ALL RECORDS RELATING TO THE PURCHASED LOANS IN ACCORDANCE WITH
INDUSTRY CUSTOM AND PRACTICE, INCLUDING THOSE MAINTAINED PURSUANT TO THE
PRECEDING SUBSECTION, AND ALL SUCH RECORDS SHALL BE IN CUSTODIAN'S POSSESSION
UNLESS BUYER OTHERWISE APPROVES.
SELLER WILL NOT CAUSE OR AUTHORIZE ANY SUCH
PAPERS, RECORDS OR FILES THAT ARE AN ORIGINAL OR AN ONLY COPY TO LEAVE
CUSTODIAN'S POSSESSION, EXCEPT FOR INDIVIDUAL ITEMS REMOVED IN CONNECTION WITH
SERVICING A SPECIFIC LOAN, IN WHICH EVENT SELLER WILL OBTAIN OR CAUSE TO BE
OBTAINED A RECEIPT FROM THE CUSTODIAN FOR ANY SUCH PAPER, RECORD OR