Common use of PURCHASE OF CONTRACTS UPON BREACH BY SERVICER Clause in Contracts

PURCHASE OF CONTRACTS UPON BREACH BY SERVICER. The Servicer or the Issuer shall inform the other party and the Indenture Trustee and the Insurer promptly, in writing, upon the discovery of any breach of the covenants, representations and warranties set forth in Section 3.06 or of the covenants set forth in Sections 3.02 or 3.05. Unless the breach shall have been cured within 30 days following such discovery or receipt of notice of such breach, the Servicer shall purchase any Contract materially and adversely affected by such breach from the Issuer. As consideration for the Contract, the Servicer shall remit the Purchase Amount on the Business Day preceding the Servicer Report Date next succeeding the end of such 30-day cure period in the manner specified in Section 4.02(a). The sole remedy of the Issuer, the Indenture Trustee, or the Noteholders with respect to a breach of Section 3.02,