Common use of Maintenance of Certain Servicing Policies Clause in Contracts

Maintenance of Certain Servicing Policies. The Servicer shall during the term of its service as servicer maintain in force (i) a policy or policies of insurance covering errors and omissions in the performance of its obligations as servicer hereunder and (ii) a fidelity bond in respect of its officers, employees or agents. Each such policy or policies and bond shall, together, comply with the requirements from time to time of the Federal National Mortgage Association for persons performing servicing for mortgage loans purchased by such association; provided, however, that if the cost of the premiums for such policy or policies and bond in any year is greater than an amount equal to the sum of (i) the premiums paid by the Servicer for such policy or policies and bond in the year during which this Agreement was executed and (ii) the product of (x) the number of full years from the date of this Agreement to such future date, (y) 0.15 and (z) the premium amount described in clause (i) above, the policy or policies and bond maintained by the Servicer may provide for coverage which does not satisfy the requirements of the Federal National Mortgage Association so long as the premiums paid by the Servicer therefor approximate such sum.