Common use of Covenants and Representations Regarding Prepayment Charges Clause in Contracts

Covenants and Representations Regarding Prepayment Charges. (a) The Seller represents and warrants to the Servicer that the information set forth in the Prepayment Charge Schedule (including the prepayment charge summary attached thereto) is complete, true and correct in all material respects at the date or dates respecting which such information is furnished and each Prepayment Charge is permissible and enforceable in accordance with its terms (except to the extent that the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors' rights generally) under applicable state law. (b) Upon discovery by the Seller, the Depositor, the Servicer or a Responsible Officer of the Trustee of a breach of clause (a), which materially and adversely affects the right of the Servicer to any Prepayment Charge, the party discovering such breach shall give prompt written notice to the other parties. Within 60 days of the earlier of discovery by the Seller, or receipt of notice by the Seller of a breach of clause (a) above, then the Seller shall cure such breach in all material respects. If the representation in clause (a) above is breached, in addition to any rights the Trustee may have hereunder, the Seller must pay to the Servicer the amount of the scheduled Prepayment Charge, less any amount previously collected by the Servicer in respect of such Prepayment Charge.