Duties of the Assuming Bank Clause Samples
The "Duties of the Assuming Bank" clause defines the responsibilities and obligations that the bank taking over certain assets, liabilities, or operations must fulfill under an agreement. Typically, this clause outlines the specific actions the assuming bank must perform, such as servicing acquired loans, honoring existing customer agreements, or complying with regulatory requirements. By clearly delineating these duties, the clause ensures a smooth transition of responsibilities and helps prevent disputes or service disruptions during the transfer process.
Duties of the Assuming Bank. (a) In performance of its duties under this Article III, the Assuming Bank shall:
(i) manage and administer each Single Family Shared-Loss Loan in accordance with Assuming Bank’s usual and prudent business and banking practices and Customary Servicing Procedures;
(ii) exercise its best business judgment in managing, administering and collecting amounts owed on the Single Family Shared-Loss Loans;
(iii) use commercially reasonable efforts to maximize Recoveries with respect to Losses on Single Family Shared-Loss Loans without regard to the effect of maximizing collections on assets held by the Assuming Bank or any of its Affiliates that are not Single Family Shared- Loss Loans;
(iv) retain sufficient staff (in Assuming Bank’s discretion) to perform its duties hereunder; and
(v) other than as provided in Section 2.1(a), comply with the terms of the Modification Guidelines for any Single Family Shared-Loss Loans meeting the requirements set forth therein. For the avoidance of doubt, the Assuming Bank may propose exceptions to Exhibit 5 (the FDIC Loan Modification Program) for a group of Loans with similar characteristics, with the objectives of (1) minimizing the loss to the Assuming Bank and the FDIC and (2) maximizing the opportunity for qualified homeowners to remain in their homes with affordable mortgage payments.
(b) Any transaction with or between any Affiliate of the Assuming Bank with respect to any Single Family Shared-Loss Loan including, without limitation, the execution of any contract pursuant to which any Affiliate of the Assuming Bank will manage, administer or collect any of the Single Family Shared-Loss Loans will be provided to FDIC for informational purposes and if such transaction is not entered into on an arm’s length basis on commercially reasonable terms such transaction shall be subject to the prior written approval of the Receiver.
Duties of the Assuming Bank. In performance of its duties under this Article III, the Assuming Bank shall:
Duties of the Assuming Bank. (a) In performance of its duties under this Article III, the Assuming Bank shall:
(i) manage and administer each Single Family Shared-Loss Loan in accordance with Assuming Bank’s usual and prudent business and banking practices and Customary Servicing Procedures;
(ii) exercise its best business judgment in managing, administering and collecting amounts owed on the Single Family Shared-Loss Loans;
(iii) use commercially reasonable efforts to maximize Recoveries with respect to Losses on Single Family Shared-Loss Loans without regard to the effect of maximizing collections on assets held by the Assuming Bank or any of its Affiliates that are not Single Family Shared-Loss Loans;
(iv) retain sufficient staff (in Assuming Bank’s discretion) to perform its duties hereunder; and
(v) other than as provided in Section 2.1(a), comply with the terms of the Modification Guidelines for any Single Family Shared-Loss Loans meeting the requirements set forth Module 1 — Whole Bank w/ Loss Share — P&A Security Banks Version 1.07 Georgia July 20, 2009
Duties of the Assuming Bank. (a) In performance of its duties under these Whole Bank P&A w/Loss Sharing 98 Suburban Federal Savings Bank January 30, ▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇ Rules, the Assuming Bank shall:
(i) manage, administer, collect and effect Charge-Offs and Recoveries with respect to each Shared-Loss Asset in a manner consistent with (A) usual and prudent business and banking practices; (B) the Assuming Bank’s practices and procedures including, without limitation, the then-effective written internal credit policy guidelines of the Assuming Bank, with respect to the management, administration and collection of and taking of charge-offs and write-downs with respect to loans, other real estate and repossessed collateral that do not constitute Shared-Loss Assets;
(ii) exercise its best business judgment in managing, administering, collecting and effecting Charge-Offs with respect to Shared-Loss Assets;
(iii) use its best efforts to maximize collections with respect to Shared-Loss Assets and, if applicable for a particular Shared-Loss Asset, without regard to the effect of maximizing collections on assets held by the Assuming Bank or any of its Affiliates that are not Shared-Loss Assets;
(iv) adopt and implement accounting, reporting, record-keeping and similar systems with respect to the Shared-Loss Assets, as provided in Section 3.3 hereof;
(v) retain sufficient staff to perform its duties hereunder;
(vi) provide written notification in accordance with Article IV of this Exhibit immediately after the execution of any contract pursuant to which any third party (other than an Affiliate of the Assuming Bank) will manage, administer or collect any of the Shared-Loss Assets, together with a copy of that contract.
(b) Any transaction with or between any Affiliate of the Assuming Bank with respect to any Shared-Loss Asset including, without limitation, the execution of any contract pursuant to which any Affiliate of the Assuming Bank will manage, administer or collect any of the Shared-Loss Assets, or any other action involving self-dealing, shall be subject to the prior written approval of the Receiver or the Corporation.
(c) The following categories of expenses shall not be deemed to be Reimbursable Expenses or Recovery Expenses:
(i) Federal, State, or local income taxes and expenses related thereto;
(ii) salaries or other compensation and related benefits of Assuming Bank employees and the employees of its Affiliates including, without limitation, any bonus, commission or severance arrangeme...
Duties of the Assuming Bank. (a) In performance of its duties under this Article III, the Assuming Bank shall:
(i) manage and administer each Single Family Shared-Loss Loan in accordance with Assuming Bank’s usual and prudent business and banking practices and Customary Servicing Procedures;
Duties of the Assuming Bank. (a) In performance of its duties under this Article III, the Assuming Bank shall:
(i) manage and administer each Single Family Shared-Loss Loan in accordance with Assuming Bank’s usual and prudent business and banking practices and Customary Servicing Procedures;
(ii) exercise its best business judgment in managing, administering and collecting amounts owed on the Single Family Shared-Loss Loans;
(iii) use commercially reasonable efforts to maximize Recoveries with respect to Losses on maximizing collections on Single Family Shared-Loss Loans without regard to the effect of maximizing collections on assets held by the Assuming Bank or any of its Affiliates that are not Single Family Shared-Loss Loans;
(iv) retain sufficient staff (in Assuming Bank’s discretion) to perform its duties hereunder; and the Modification
(v) other than as provided in Section 2.1(a), comply with the terms of Guidelines for any Single Family Shared-Loss Loans meeting the requirements set forth therein. For the avoidance of doubt, the Assuming Bank may propose exceptions to Exhibit 5 (the FDIC Loan Modification Program) for a group of Loans with similar characteristics, with the objectives of (1) minimizing the loss to the Assuming Bank and the FDIC and (2) maximizing the opportunity for qualified homeowners to remain in their homes with affordable mortgage payments.