Application of Default Charges Clause Samples
The 'Application of Default Charges' clause defines when and how additional fees or penalties are imposed if a party fails to meet its contractual obligations, such as late payments or missed deadlines. Typically, this clause outlines the specific circumstances that trigger default charges, the method for calculating these charges, and the process for notifying the defaulting party. Its core practical function is to incentivize timely performance and compensate the non-defaulting party for any inconvenience or loss caused by the default, thereby promoting contract compliance and reducing the risk of repeated breaches.
Application of Default Charges. (a) Any and all Default Charges that are actually received by or on behalf of the Trust with respect to any Serviced Mortgage Loan (other than any Mortgage Loan included in a Serviced Loan Combination) or any related REO Mortgage Loan that is a successor thereto (net of any portion thereof applied to pay Advance Interest under Section 3.05) and (to the extent remitted to the applicable Master Servicer by the related Non-Trust Master Servicer and, in any event, subject to the related Intercreditor Agreement) any and all Default Charges that are actually received by or on behalf of the Trust with respect to a Non-Trust-Serviced Pooled Mortgage Loan or successor REO Mortgage Loan during any Collection Period shall be applied for the following purposes and in the following order, in each case to the extent of the remaining portion of such charges and fees:
(i) first, to pay to the Trustee, the applicable Master Servicer or the applicable Special Servicer, in that order, any Advance Interest due and owing to such party on outstanding Advances made thereby with respect to such Mortgage Loan or REO Mortgage Loan, as the case may be;
(ii) second, to reimburse the Trust Fund for any Advance Interest paid to the Trustee, the applicable Master Servicer or the applicable Special Servicer following the Closing Date with respect to such Mortgage Loan or REO Mortgage Loan, as the case may be, which interest was paid from a source other than Default Charges collected on such Mortgage Loan or REO Mortgage Loan, as the case may be; and
(iii) third, with respect to any remaining Default Charges (“Net Default Charges”), to the applicable Master Servicer, to the extent that such Net Default Charges accrued while the related Mortgage Loan was not a Specially Serviced Mortgage Loan, or to the applicable Special Servicer, to the extent that such Net Default Charges accrued while the related Mortgage Loan was a Specially Serviced Mortgage Loan.
(b) Default Charges applied to reimburse the Trust pursuant to clause second of Section 3.25(a) are intended to be available for distribution on the Certificates pursuant to Section 4.01(a), subject to application pursuant to Section 3.05(a) or Section 3.05(b) for any items payable out of general collections on the Mortgage Pool. Default Charges applied to reimburse the Trust pursuant to clause second of Section 3.25(a) shall be deemed to offset payments of Advance Interest in the chronological order in which it accrued with respect to the ...
Application of Default Charges. Section 3.28 Limitations on and Authorizations of the Master Servicer and Special Servicer with Respect to Specific Mortgage Loans.......................................................
Application of Default Charges. Section 3.28 Matters Regarding the Whole Loans.........................
Application of Default Charges. Section 3.28
Application of Default Charges. (a) Any and all Default Charges that are actually received by or on behalf of the Trust with respect to the Mortgage Pool, shall be applied for the following purposes and in the following order, in each case to the extent of the remaining portion of such Default Charges: [Specify application of Default Charges.]
Application of Default Charges. (a) Any and all Default Charges that are actually Received by the Trust and deposited in the Pool Custodial Account with respect to any Trust Mortgage Loan or REO Trust Mortgage Loan during any applicable Collection Period, shall be applied for the following purposes and in the following order, in each case to the extent of the remaining portion of such Default Charges: first, to pay to any Fiscal Agent, the Trustee, the Master Servicer and the Special Servicer, in that order, any interest due and owing to such party on any outstanding Advances made thereby with respect to such Trust Mortgage Loan or REO Trust Mortgage Loan, as the case may be, which interest on such outstanding Advance accrued on or prior to the date on which the subject Default Charges were received; second, to pay any other outstanding expenses (exclusive of Special Servicing Fees, Liquidation Fees and Workout Fees) incurred with respect to such Trust Mortgage Loan or REO Trust Mortgage Loan, as the case may be, that, if paid from collections on the Mortgage Pool other than such Default Charges, would constitute an Additional Trust Fund Expense;
Application of Default Charges. Section 3.28 Matters Regarding the Loan Pairs..........................
Application of Default Charges. 231 PAYMENTS TO CERTIFICATEHOLDERS; REPORTS TO CERTIFICATEHOLDERS SECTION 4.01. Distributions..................................................................237 SECTION 4.02. Statements to Certificateholders; CMSA Loan Periodic Update File...............251 SECTION 4.03. P&I Advances With Respect to the Mortgage Pool.................................259 SECTION 4.04. Allocations of Realized Losses and Additional Trust Fund Expenses..............265 SECTION 4.05. Various Reinstatement Amounts..................................................266 SECTION 4.06. Calculations...................................................................268 SECTION 4.07. Use of Agents..................................................................268 ARTICLE V THE CERTIFICATES SECTION 5.01. The Certificates...............................................................269 SECTION 5.02. Registration of Transfer and Exchange of Certificates..........................269 SECTION 5.03. Book-Entry Certificates........................................................277 SECTION 5.04. Mutilated, Destroyed, Lost or Stolen Certificates..............................278 SECTION 5.05. Persons Deemed Owners..........................................................279 ARTICLE VI THE DEPOSITOR, THE MASTER SERVICER, THE SPECIAL SERVICER AND THE CONTROLLING CLASS REPRESENTATIVE
Application of Default Charges. Section 3.27 Controlling Class Representative Contact with Servicer...................................................... Section 3.28 Certain Matters Regarding the Loan Combinations............... Section 3.29
Application of Default Charges. Rights of the Holder of the 622 Third Avenue B Loan and the Holders of the Washing▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ Loans...........