Common use of Transaction Sublimits Clause in Contracts

Transaction Sublimits. The following sublimits shall also be applicable to the Transactions hereunder such that after giving effect to any proposed Transaction and after giving effect to any repurchase, addition or substitution of any Mortgage Loan hereunder, the following shall be true: (a) The Aggregate Outstanding Purchase Price of Conforming Mortgage Loans may be as much as one hundred percent (100%) of the Buyer’s Committed Sum. (b) The Aggregate Outstanding Purchase Price of all Purchased Loans that are Wet Loans shall not exceed (x) fifty percent (50%) of the Buyer’s Committed Sum on any of the first five and last five Business Days of any month or (y) thirty-five percent (35%) of the Buyer’s Committed Sum on any other day (the “Wet Loans Sublimit”). (c) The Aggregate Outstanding Purchase Price of all Purchased Loans that are of the type listed in the first column of the following table shall not exceed the percentage of the Buyer’s Committed Sum listed in the second column of the table (the name of that Sublimit is set forth in the third column). (d) The Purchase Value for any Purchased Loan hereunder shall not be more than One Million Dollars ($1,000,000). (e) The Buyer may, in its sole and absolute discretion, consent to a change in the handling of one or more Purchased Loans at any time (for purposes of clarity, this Section 4.2(e) permits the Buyer to temporarily suspend the effects of one or more Disqualifiers if the Buyer determines that such Disqualifier may be resolved or corrected and to allow funding of a Wet Loan one Business Day after the advance of funds for the purchase of such Wet Loan).