Servicer Option Clause Samples
The Servicer Option clause grants the servicer the authority to make certain decisions or take specific actions on behalf of the parties involved in a financial or loan agreement. Typically, this clause allows the servicer to choose how to handle defaulted loans, such as whether to pursue foreclosure, modify the loan terms, or sell the property. By clearly outlining the servicer's discretionary powers, the clause ensures efficient management of assets and provides flexibility in responding to changing circumstances, ultimately streamlining the administration of the agreement and mitigating potential delays or disputes.
Servicer Option. If the aggregate Note Balance on any Payment Date (after giving effect to any principal payments to be made on the Notes on such Payment Date) is equal to or less than 5% of the initial aggregate Note Balance, the Servicer will have the option to purchase the 2022-A Exchange Note in whole but not in part on such Payment Date. The Servicer may exercise its option to purchase the 2022-A Exchange Note by (i) notifying the Collateral Agent, the Borrowers, the Owner Trustee, the Administrative Agent, the Indenture Trustee and the Rating Agencies at least ten days before the related Payment Date (which Payment Date will be the Exchange Note Purchase Date) and (ii) depositing in the Exchange Note Collection Account an amount equal to the Exchange Note Purchase Price on the Business Day before the Exchange Note Purchase Date (or, with satisfaction of the Rating Agency Condition, on the Exchange Note Purchase Date). However, the Servicer may not exercise its option to purchase the 2022-A Exchange Note unless the sum of (i) the Exchange Note Purchase Price and (ii) the amount in the Exchange Note Collection Account for the related Collection Period, is greater than or equal to the sum of (A) the Note Redemption Price for the Notes and (B) all other amounts payable by the Issuer under the Transaction Documents.
Servicer Option. If the aggregate Note Balance on the last day of a Collection Period is equal to or less than 5% of the initial aggregate Note Balance, the Servicer will have the option to purchase the 2016-A Exchange Note in whole but not in part on the related Payment Date. The Servicer may exercise its option to purchase the 2016-A Exchange Note by (i) notifying the Collateral Agent, the Borrowers, the Owner Trustee, the Administrative Agent, the Indenture Trustee and the Rating Agencies at least ten days before the related Payment Date (which Payment Date will be the Exchange Note Purchase Date) and (ii) depositing in the Exchange Note Collection Account an amount equal to the Exchange Note Purchase Price on the Business Day before the Exchange Note Purchase Date (or, with satisfaction of the Rating Agency Condition, on the Exchange Note Purchase Date). However, the Servicer may not exercise its option to purchase the 2016-A Exchange Note unless the sum of (i) the Exchange Note Purchase Price and (ii) the amount in the Exchange Note Collection Account for the related Collection Period, is greater than or equal to the sum of (A) the Note Redemption Price for the Notes and (B) all other amounts payable by the Issuer under the Transaction Documents.