Servicer Events of Default Clause Samples
The "Servicer Events of Default" clause defines specific circumstances under which the servicer is considered to have failed in its contractual obligations. Typically, this includes events such as failure to remit payments, breach of servicing standards, insolvency, or misrepresentation. When such an event occurs, it usually triggers remedies for the other parties, such as the right to replace the servicer or take other corrective actions. The core function of this clause is to protect the interests of investors or other stakeholders by providing clear grounds and procedures for addressing serious failures by the servicer.
Servicer Events of Default. (a) If any one of the following events (“Servicer Events of Default”) shall occur and be continuing:
(i) (A) The failure by the Servicer to make any Monthly Advance which continues unremedied for a period of one (1) Business Day after it was due; or (B) any other failure by the Servicer to deposit in the Collection Account or the Distribution Account any deposit required to be made under the terms of this Agreement which continues unremedied for a period of two (2) Business Days after such deposit was due or (C) the failure by the Servicer to make any remittances into the Distribution Account required pursuant to Section 3.03(i) which continues unremedied for a period of one (1) Business Day after it was due;
(ii) (A) The failure by the Servicer to make any required Servicing Advance which failure continues unremedied for a period of sixty (60) days, or (B) the failure by the Servicer duly to observe or perform, in any material respect, any other covenants, obligations or agreements of the Servicer as set forth in this Agreement, which failure materially and adversely affects the interests of the Certificateholders, continues unremedied for a period of sixty (60) days, after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Master Servicer, the Securities Administrator or the Trustee or to the Servicer and the Master Servicer, the Securities Administrator or the Trustee, by any Holder with Certificates evidencing Voting Rights of at least 25%; provided, however, that in the case of a failure that cannot be cured within sixty (60) days, the cure period may be extended if the Servicer can demonstrate to the reasonable satisfaction of the Master Servicer, the Securities Administrator and the Trustee that the Servicer is diligently pursuing remedial action;
(iii) The filing of a petition against the Servicer in a court or agency or supervisory authority having jurisdiction in the premises for the appointment of a trustee, conservator, receiver or liquidator in any insolvency, conservatorship, receivership, readjustment of debt, marshaling of assets and liabilities or similar proceedings, or for the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of thirty (30) consecutive days; or
(iv) The Servicer shall voluntarily go into liquidation, consent to the appointment of a conservator or receiver or liquidator...
Servicer Events of Default. With respect to the Servicer, individually, if any one of the following events (“Servicer Event of Default”) shall occur and be continuing:
(i) any failure by the Servicer to remit to the Trust Administrator for distribution to the Certificateholders any payment (other than a P&I Advance required to be made from its own funds on any Servicer Remittance Date pursuant to Section 4.03) required to be made under the terms of the Certificates and this Agreement which continues unremedied for a period of two Business Days after the date upon which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Depositor, the Trust Administrator or the Trustee (in which case notice shall be provided by telecopy), or to the Servicer, the Depositor, the Trust Administrator and the Trustee by the Holders of Certificates entitled to at least 25% of the Voting Rights; or
(ii) any failure on the part of the Servicer duly to observe or perform in any material respect any other of the covenants or agreements on the part of the Servicer contained in this Agreement, or the breach by the Servicer of any representation and warranty contained in Section 2.05 (other than representation 2.05(a)(x)), which continues unremedied for a period of 30 days (or if such failure or breach cannot be remedied within 30 days, then such remedy shall have been commenced within 30 days and diligently pursued thereafter; provided, however, that in no event shall such failure or breach be allowed to exist for a period of greater than 60 days) after the earlier of (i) the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Depositor, the Trust Administrator or the Trustee, or to the Servicer, the Depositor, the Trust Administrator and the Trustee by the Holders of Certificates entitled to at least 25% of the Voting Rights and (ii) actual knowledge of such failure by a Servicing Officer; or
(iii) a decree or order of a court or agency or supervisory authority having jurisdiction in the premises in an involuntary case under any present or future federal or state bankruptcy, insolvency or similar law or the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceeding, or for the winding-up or liquidation of its affairs, shall have been entered against the Servicer and if such proceeding...
Servicer Events of Default. 123 7.02. Master Servicer, Trust Administrator or Trustee to Act; Appointment of Successor.....................................................................................126 7.03. Notification to Certificateholders............................................................128 7.04. Waiver of Servicer Events of Default..........................................................128 ARTICLE VIII
Servicer Events of Default. Section 6.02.
Servicer Events of Default. 34 8.02 Termination.............................................. 36 8.03 Trustee to Act; Appointment of Successor................. 37 8.04 Servicer to Cooperate.................................... 38 8.05 Notification to Noteholders.............................. 38 8.06 Remedies Not Exclusive................................... 38
Servicer Events of Default. Trustee to Act; Appointment of Successor.
Servicer Events of Default. Trust Administrator or Trustee to Act; Appointment of Successor.
Servicer Events of Default. If a Servicer Event of Default has occurred and is continuing, the Trustee shall, upon the written request of the Insurer (so long as no Insurer Default has occurred and is continuing ) or the holders of 66-2/3% of the then Outstanding Principal Amount of the Notes (if an Insurer Default has occurred and is continuing), give notice in writing to the Servicer of the termination of all of the rights and obligations of the Servicer under the Assignment and Servicing Agreement (but none of IOS Capital's obligations pursuant to Section 5 of the Assignment and Servicing Agreement, which shall survive such termination). On and after the giving of such written notice, all rights and obligations of the Servicer under the Assignment and Servicing Agreement, including, without limitation, the Servicer's right thereunder to receive the Servicing Fee, but none of the Servicer obligations pursuant to Section 4 thereof, shall pass to, be vested in, and be assumed by the Trustee, and the Trustee shall be authorized to, and shall, execute and deliver, on behalf of the Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of such termination and of such passing, vesting, and assumption; provided that in performing the duties of the Servicer -------- under the Assignment and Servicing Agreement the Trustee shall at all times be deemed to be acting as the Trustee hereunder and shall be entitled to the full benefit of all the protections, benefits, immunities and indemnities provided in this Indenture for or with respect to the Trustee, including without limitation those set forth in Article VIII hereof.
Servicer Events of Default. The occurrence and continuation of any one of the following events shall be a "Servicer Event of Default" under the Servicing Agreement:
A. Failure on the part of the Servicer to remit collections on the Contracts to the Master Collections Account when due and continuance of such failure for four Business Days; or
B. An involuntary case is commenced or filed against the Servicer under the federal bankruptcy laws, as now or hereafter in effect, or any other present or future federal or state bankruptcy, insolvency or similar law, or for the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Servicer or of any substantial part of its property, or for the winding up of the affairs of, liquidation, dissolution, or reorganization of the Servicer and the continuance of such case or filing unstayed for a period of thirty consecutive days; or
C. An order for relief shall be entered in a case under title 11 of the United States Code on which the Servicer is a debtor, or the Servicer shall become insolvent or admit in writing it s inability to pay its debts as they come due, or the commencement by the Servicer of a voluntary case under the federal bankruptcy laws, as now or hereafter in effect, or any other present or future federal or state bankruptcy, insolvency or similar law, or the consent by the Servicer to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Servicer or of any substantial part of its property or the making by the Servicer of an assignment for the benefit of creditors or the failure by the Servicer generally to pay its debts as such debts become due or the taking of corporate action by the Servicer in furtherance of any of the foregoing.
D. Failure by Servicer to service and collect amounts due from Obligors under Contracts in accordance with the servicing criteria described in EXHIBIT A attached hereto.
Servicer Events of Default. Master Servicer to Act; Appointment of Successor.