Qualification Defect Clause Samples

A Qualification Defect clause defines what constitutes a failure to meet specific qualifications or standards required under an agreement. In practice, this clause outlines the criteria or benchmarks that parties must satisfy, such as professional certifications, regulatory approvals, or technical competencies, and specifies the consequences if these are not met. By clearly identifying what qualifies as a defect in qualifications, the clause helps prevent disputes over compliance and ensures that all parties understand the standards they are expected to maintain.
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Qualification Defect. If (A) any person required to cure or purchase under subsections 2.03(a), 2.03(b), 2.03(c) or 2.03(d) of these Standard Terms or under a separate agreement for a Mortgage Loan affected by a Qualification Defect fails to perform within the earlier of (1) 75 days of the Defect Discovery Date or (2) the time limit set forth in those subsections or that separate agreement or (B) no person is obligated to cure or purchase a Mortgage Loan affected by a Qualification Defect, the Trustee shall dispose of such Mortgage Loan in such manner and for such price as the Trustee determines are appropriate, provided that the removal of such Mortgage Loan occurs no later than the 90th day from the Defect Discovery Date. If the Servicer is not the person required to cure or repurchase the Mortgage Loan, the Trustee may consult with such Servicer to determine an appropriate manner of disposition for and price for such Mortgage Loan. It is the express intent of the parties that a Mortgage Loan affected by a Qualification Defect be removed from the Trust by the 90th day from the Defect Discovery Date so that the related REMIC(s) will continue to qualify as a REMIC. Accordingly, the Trustee is not required to sell an affected Mortgage Loan for its fair market value nor shall the Trustee be required to make up any shortfall resulting from the sale of such Mortgage Loan. The person failing to perform under subsections 2.03(a), 2.03(b), 2.03(c) or 2.03(d) of these Standard Terms shall be liable to the Trust for (i) any difference between (A) the Unpaid Principal Balance of the Mortgage Loan plus accrued and unpaid interest thereon at the Note Rate to the date of disposition and (B) the net amount received by the Trustee from the disposition (after the payment of related expenses), (ii) interest on such difference at the Note Rate (less the Administrative Cost Rate) from the date of disposition to the date of payment and (iii) any legal and other expenses incurred by or on behalf of the Trust in seeking such payments. The Trustee shall pursue the legal remedies of the Trust on the Trust’s behalf and the Trust shall reimburse the Trustee for any legal or other expenses of the Trustee related to such pursuit not recovered from such person.
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Qualification Defect. 11 "Qualified Institutional Buyer".................................................................................. 11 "Qualified Substitute Mortgage Asset"............................................................................ 11 "Rating Agency".................................................................................................. 12 "Realized Interest Shortfall".................................................................................... 12 "Realized Loss".................................................................................................. 12 "Record Date".................................................................................................... 13 "Recordation Report"............................................................................................. 13 "Redeeming Purchase"............................................................................................. 13 "Redemption Account"............................................................................................. 13 "Redemption Date"................................................................................................ 13 "Redemption Price"............................................................................................... 13 "Regular Interest"............................................................................................... 13 "Regular Security"............................................................................................... 13 "REMIC".......................................................................................................... 13 "
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Qualification Defect. If any Person required to cure, purchase, or substitute under Section 2.05(a) above for an Asset affected by a Qualification Defect fails to perform within the time limit set forth in those subsections, the Trustee shall dispose of such an Asset in such manner and for such price as the Master Servicer advises the Trustee are appropriate, provided that the removal of such Asset occurs no later than the 90th day from the Defect Discovery Date. It is the express intent of the parties that an Asset affected by a Qualification Defect be removed from the Trust before the 90th day from the Defect Discovery Date so that the related REMIC or Pooling REMIC will continue to qualify as a REMIC. Accordingly, the Trustee is not required to sell an affected Asset for its fair market value nor shall the Trustee be required to make up any shortfall resulting from the sale of such Asset. The person failing to perform under Section 2.05(a) above shall be liable to the Trust for (1) any -28- 33 difference between (A) the Unpaid Principal Balance plus accrued and unpaid interest thereon at the applicable Asset Rate to the date of disposition and (B) the net amount received by the Trustee from the disposition (after the payment of related expenses), (2) interest on such difference at the Asset Rate from the date of disposition to the date of payment and (3) any legal and other expenses incurred by or on behalf of the Trust in seeking such payments. Except where the Master Servicer is the person failing to perform, the Master Servicer shall pursue the legal remedies of the Trust on the Trust's behalf and the Trust shall reimburse the Master Servicer for any legal or other expenses of the Master Servicer related to such pursuit not recovered from such person. If the Master Servicer is the person failing to perform, the Trustee shall pursue the Trust's legal remedies against the Master Servicer and the Trust shall reimburse the Trustee for its related legal or other expenses.
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Related to Qualification Defect

  • Qualification of the Tenderer 5.1 All Tenderers shall provide in Section IV, Tendering Forms, a preliminary description of the proposed work method and schedule, including drawings and charts, as necessary. 5.2 In the event that pre-qualification of Tenderers has been undertaken as stated in ITT 18.3, the provisions on qualifications of the Section III, Evaluation and Qualification Criteria shall not apply.

  • Eligibility; Disqualification There will at all times be a Trustee hereunder that is a corporation organized and doing business under the laws of the United States of America or of any state thereof that is authorized under such laws to exercise corporate trustee power, that is subject to supervision or examination by federal or state authorities and that has a combined capital and surplus of at least $100.0 million as set forth in its most recent published annual report of condition. This Indenture will always have a Trustee who satisfies the requirements of TIA § 310(a)(1), (2) and (5). The Trustee is subject to TIA § 310(b).

  • QUALIFICATION OF BIDDERS BID PACKAGE REQUIREMENTS:

  • Qualification Requirements In addition to ITB 13.1, ITB 13.2, and ITB 13.3 (b), the potential bidder must also fulfill the following:- a) The Bidder must be a Manufacturer or an Authorized Dealer or service provider for sales & service continuously from last one- year.

  • Defect Eliminated in Final Prospectus The foregoing indemnity agreements of the Company and Holders are subject to the condition that, insofar as they relate to any Violation made in a preliminary prospectus but eliminated or remedied in the amended prospectus on file with the SEC at the time the registration statement in question becomes effective or the amended prospectus filed with the SEC pursuant to SEC Rule 424(b) (the "Final Prospectus"), such indemnity agreement shall not inure to the benefit of any person if a copy of the Final Prospectus was timely furnished to the indemnified party and was not furnished to the person asserting the loss, liability, claim or damage at or prior to the time such action is required by the Securities Act.