Common use of Remedies for the MPF Clause in Contracts

Remedies for the MPF. Provider’s Default or for a Termination Event. Upon the occurrence of an Event of Default caused by the MPF Provider or a Termination Event, the Pittsburgh Bank shall have the right to cease issuing new Master Commitments, and, at the election of the Pittsburgh Bank: (i) If the aggregate balance of the Pittsburgh Bank’s outstanding Program Loans is less than or equal to $25 Million: (A) the MPF Provider shall purchase the Pittsburgh Bank’s Loans at Fair Market Value; and (B) the MPF Provider shall refund the full amount of the Program Contribution paid by the Pittsburgh Bank; (ii) If the aggregate balance of the Pittsburgh Bank’s outstanding Program Loans is greater than $25 Million but less than or equal to $100 Million: (A) (I) subject to the provisions of Section 6.2.3., the MPF Provider shall license the MPF System to the Pittsburgh Bank to operate on its own computer hardware to the Pittsburgh Bank and the Pittsburgh Bank shall engage its own custodian and master servicer and assume responsibility for the oversight of those functions with respect to its outstanding and future Program Loans; or (II) the MPF Provider shall purchase the Pittsburgh Bank’s outstanding Program Loans at Fair Market Value, or (III) the MPF Provider will continue to provide ancillary support services and act as custodian and master servicer for the Pittsburgh Bank’s outstanding Program Loans without charge to the Pittsburgh Bank, or (IV) the Pittsburgh Bank may engage its own custodian and master servicer and assume responsibility for the oversight of those functions with respect to its outstanding Program Loans; and (B) the MPF Provider shall refund the Program Contribution paid by the Pittsburgh Bank in accordance with the following schedule: (I) In the first year of the Term, 75% of paid Program Contribution; (II) In the 2nd year of the Term, 50% of paid Program Contribution; or (III) After the 2nd year of the Term, 25% of paid Program Contribution. (iii) If the aggregate balance of the Pittsburgh Bank’s outstanding Program Loans is greater than $100 Million: (A) (I) subject to the provisions of Section 6.2.3., the MPF Provider shall license the MPF System to the Pittsburgh Bank to operate on its own computer hardware and the Pittsburgh Bank shall engage its own custodian and master servicer and assume responsibility for the oversight of those functions with respect to its outstanding and future Program Loans; or (II) the MPF Provider will continue to provide ancillary support services and act as custodian and master servicer for the Pittsburgh Bank’s outstanding Program Loans in accordance with the provisions of Article V, for an annual fee equal to four (4) basis points (0.04%) of the outstanding amount of the Pittsburgh Bank’s Program Loans (subject to adjustment to reflect any increase in the Master Servicer’s fees and/or Custodian’s fees for such Program Loans), or (II) the Pittsburgh shall engage its own custodian and master servicer and assume responsibility for the oversight of those functions with respect to its outstanding Program Loans, and (B) the MPF Provider shall refund the Program Contribution paid by the Pittsburgh Bank in accordance with the following schedule: (I) In the first year of the Term, 75% of paid Program Contribution; (II) In the 2nd year of the Term, 50% of paid Program Contribution; or (III) After the 2nd year of the Term, 25% of paid Program Contribution.