Common use of Election to Commence Foreclosure Proceedings Clause in Contracts

Election to Commence Foreclosure Proceedings. (a) In connection with any Subject Mortgage Loan identified under Section 9.02(a)(i), the Directing Holder may elect, for reasonable cause as determined by the Directing Holder, to instruct the Master Servicer to proceed with Commencement of Foreclosure as soon as practicable. (b) Within two Business Days of making any Election to Foreclose, the Directing Holder shall remit to the Master Servicer, for deposit in the Collateral Account, an amount, as calculated by the Master Servicer, equal to the sum of (1) 125% of the Stated Principal Balance of the Subject Mortgage Loan and (2) three months' interest on the Subject Mortgage Loan at the applicable Mortgage Rate. If and when any such Subject Mortgage Loan is brought current (including the payment to the Collateral Account of all related Payment Advances and Servicing Advances) by the Mortgagor, all amounts in the Collateral Account in respect of such Subject Mortgage Loan shall be released to the Directing Holder. (c) With respect to any Subject Mortgage Loan as to which the Directing Holder has made an Election to Foreclose, the Master Servicer shall continue to service such Subject Mortgage Loan in accordance with the terms of this Agreement (other than to proceed with the Commencement of Foreclosure as provided herein). In connection therewith, the Master Servicer shall have the same rights to make withdrawals for related Payment Advances and Servicing Advances from the Collateral Account as are provided under Section 9.03(e), and the Master Servicer shall make reimbursements thereto to the limited extent provided under such subsection. The Master Servicer shall not be required to proceed with the Commencement of Foreclosure if (i) the same is stayed as a result of the Mortgagor's bankruptcy or is otherwise barred by applicable law, or to the extent that all legal conditions precedent thereto have not yet been complied with or (ii) the Master Servicer reasonably determines that such foreclosure might result in liability to the Master Servicer, unless the Directing Holder provides, at such time, a general indemnity to the Master Servicer with respect to any such liability or (iii) the Master Servicer believes there is a breach of representations or warranties which may result in a repurchase or substitution of such Mortgage Loan or (iv) the Master Servicer reasonably believes the Mortgaged Property may be contaminated with or affected by hazardous wastes or hazardous substances. Any foreclosure that has been initiated may be discontinued if the Subject Mortgage Loan has been brought current (including the payment to the Collateral Account of all related Payment Advances and Servicing Advances) or if a refinancing or prepayment occurs pursuant to which the Subject Mortgage Loan is brought current (including the payment to the Collateral Account of all related Payment Advances and Servicing Advances), without notice to the Directing Holder. If and when any such Subject Mortgage Loan is brought current by the Mortgagor (including the payment to the Collateral Account of all related Payment Advances and Servicing Advances), all amounts remaining in the Collateral Account in respect of such Subject Mortgage Loan (after adjustment for all withdrawals and deposits pursuant to this subsection) shall be released to the Directing Holder. (d) Upon the occurrence of a liquidation of a defaulted Mortgage Loan or the disposition of a REO Property, in either case with respect to any Subject Mortgage Loan as to which the Directing Holder made an Election to Foreclose and as to which the Master Servicer proceeded with the Commencement of Foreclosure in accordance with subsection (c) above, the Master Servicer shall calculate the amount, if any, by which the Stated Principal Balance of such Subject Mortgage Loan exceeds the Liquidation Proceeds for the related Mortgage Loan or REO Property, and the Master Servicer shall withdraw the amount of such excess from the Collateral Account, shall remit the same to the Collection Account and in its capacity as Master Servicer shall apply such amount as additional Liquidation Proceeds pursuant to this Agreement. After making any such withdrawal or deposit as provided in this subsection (d), all amounts remaining in the Collateral Account in respect of such Subject Mortgage Loan shall be released to the Directing Holder.

Election to Commence Foreclosure Proceedings. (a) In connection with any Subject Mortgage Loan identified under Section 9.02(a)(i7.02(a)(i), the Directing Holder may elect, for reasonable cause as determined by the Directing Holder, to instruct the Master Servicer to proceed with Commencement of Foreclosure as soon as practicable. (b) Within two Business Days of making any Election to Foreclose, the Directing Holder shall remit to the Master Servicer, for deposit in the Collateral Account, an amount, as calculated by the Master Servicer, equal to the sum of (1) 125% of the Stated Principal Balance of the Subject Mortgage Loan and (2) three months' interest on the Subject Mortgage Loan at the applicable Mortgage Rate. If and when any such Subject Mortgage Loan is brought current (including the payment to the Collateral Account of all related Payment P&I Advances and Servicing Advances) by the Mortgagor, all amounts in the Collateral Account in respect of such Subject Mortgage Loan shall be released to the Directing Holder. (c) With respect to any Subject Mortgage Loan as to which the Directing Holder has made an Election to Foreclose, the Master Servicer shall continue to service such Subject Mortgage Loan in accordance with the terms of this Agreement (other than to proceed with the Commencement of Foreclosure as provided herein). In connection therewith, the Master Servicer shall have the same rights to make withdrawals for related Payment P&I Advances and Servicing Advances from the Collateral Account as are provided under Section 9.03(e7.03(e), and the Master Servicer shall make reimbursements thereto to the limited extent provided under such subsection. The Master Servicer shall not be required to proceed with the Commencement of Foreclosure if (i) the same is stayed as a result of the Mortgagor's bankruptcy or is otherwise barred by applicable law, or to the extent that all legal conditions precedent thereto have not yet been complied with or (ii) the Master Servicer reasonably determines that such foreclosure might result in liability to the Master Servicer, unless the Directing Holder provides, at such time, a general indemnity to the Master Servicer with respect to any such liability or (iii) the Master Servicer believes there is a breach of representations or warranties which may result in a repurchase or substitution of such Mortgage Loan or (iv) the Master Servicer reasonably believes the Mortgaged Property may be contaminated with or affected by hazardous wastes or hazardous substances. Any foreclosure that has been initiated may be discontinued if the Subject Mortgage Loan has been brought current (including the payment to the Collateral Account of all related Payment P&I Advances and Servicing Advances) or if a refinancing or prepayment occurs pursuant to which the Subject Mortgage Loan is brought current (including the payment to the Collateral Account of all related Payment P&I Advances and Servicing Advances), without notice to the Directing Holder. If and when any such Subject Mortgage Loan is brought current by the Mortgagor (including the payment to the Collateral Account of all related Payment P&I Advances and Servicing Advances), all amounts remaining in the Collateral Account in respect of such Subject Mortgage Loan (after adjustment for all withdrawals and deposits pursuant to this subsection) shall be released to the Directing Holder. (d) Upon the occurrence of a liquidation of a defaulted Mortgage Loan or the disposition of a REO Property, in either case with respect to any Subject Mortgage Loan as to which the Directing Holder made an Election to Foreclose and as to which the Master Servicer proceeded with the Commencement of Foreclosure in accordance with subsection (c) above, the Master Servicer shall calculate the amount, if any, by which the Stated Principal Balance of such Subject Mortgage Loan exceeds the Liquidation Proceeds for the related Mortgage Loan or REO Property, and the Master Servicer shall withdraw the amount of such excess from the Collateral Account, shall remit the same to the Collection Account and in its capacity as Master Servicer shall apply such amount as additional Liquidation Proceeds pursuant to this Agreement. After making any such withdrawal or deposit as provided in this subsection (d), all amounts remaining in the Collateral Account in respect of such Subject Mortgage Loan shall be released to the Directing Holder.

Election to Commence Foreclosure Proceedings. (a) In connection with any Subject Mortgage Loan identified under Section 9.02(a)(i7.02(a)(i), the Directing Holder may elect, for reasonable cause as determined by the Directing Holder, to instruct the Master Servicer to proceed with Commencement of Foreclosure as soon as practicable. (b) Within two Business Days of making any Election to Foreclose, the Directing Holder shall remit to the Master Servicer, for deposit in the Collateral Account, an amount, as calculated by the Master Servicer, equal to the sum of (1) 125% of the Stated Principal Balance of the Subject Mortgage Loan and (2) three months' interest on the Subject Mortgage Loan at the applicable Mortgage Rate. If and when any such Subject Mortgage Loan is brought current (including the payment to the Collateral Account of all related Payment Advances and Servicing Advances) by the Mortgagor, all amounts in the Collateral Account in respect of such Subject Mortgage Loan shall be released to the Directing Holder. (c) With respect to any Subject Mortgage Loan as to which the Directing Holder has made an Election to Foreclose, the Master Servicer shall continue to service such Subject Mortgage Loan in accordance with the terms of this Agreement (other than to proceed with the Commencement of Foreclosure as provided herein). In connection therewith, the Master Servicer shall have the same rights to make withdrawals for related Payment P&I Advances and Servicing Advances from the Collateral Account as are provided under Section 9.03(e7.03(e), and the Master Servicer shall make reimbursements thereto to the limited extent provided under such subsection. The Master Servicer shall not be required to proceed with the Commencement of Foreclosure if (i) the same is stayed as a result of the Mortgagor's bankruptcy or is otherwise barred by applicable law, or to the extent that all legal conditions precedent thereto have not yet been complied with or (ii) the Master Servicer reasonably determines that such foreclosure might result in liability to the Master Servicer, unless the Directing Holder provides, at such time, a general indemnity to the Master Servicer with respect to any such liability or (iii) the Master Servicer believes there is a breach of representations or warranties which may result in a repurchase or substitution of such Mortgage Loan or (iv) the Master Servicer reasonably believes the Mortgaged Property may be contaminated with or affected by hazardous wastes or hazardous substances. Any foreclosure that has been initiated may be discontinued if the Subject Mortgage Loan has been brought current (including the payment to the Collateral Account of all related Payment P&I Advances and Servicing Advances) or if a refinancing or prepayment occurs pursuant to which the Subject Mortgage Loan is brought current (including the payment to the Collateral Account of all related Payment P&I Advances and Servicing Advances), without notice to the Directing Holder. If and when any such Subject Mortgage Loan is brought current by the Mortgagor (including the payment to the Collateral Account of all related Payment P&I Advances and Servicing Advances), all amounts remaining in the Collateral Account in respect of such Subject Mortgage Loan (after adjustment for all withdrawals and deposits pursuant to this subsection) shall be released to the Directing Holder. (d) Upon the occurrence of a liquidation of a defaulted Mortgage Loan or the disposition of a an REO Property, in either case with respect to any Subject Mortgage Loan as to which the Directing Holder made an Election to Foreclose and as to which the Master Servicer proceeded with the Commencement of Foreclosure in accordance with subsection (c) above, the Master Servicer shall calculate the amount, if any, by which the Stated Principal Balance of such Subject Mortgage Loan exceeds the Liquidation Proceeds for the related Mortgage Loan or REO Property, and the Master Servicer shall withdraw the amount of such excess from the Collateral Account, shall remit the same to the Collection Account and in its capacity as Master Servicer shall apply such amount as additional Liquidation Proceeds pursuant to this Agreement. After making any such withdrawal or deposit as provided in this subsection (d), all amounts remaining in the Collateral Account in respect of such Subject Mortgage Loan shall be released to the Directing Holder.