Common use of Trustee Advances Clause in Contracts

Trustee Advances. (a) Under the terms of each Servicing Agreement, on the Business Day prior to each Remittance Date, the related Servicer is obligated to make a Monthly Advance with respect to any delinquencies as of the related Distribution Date, unless such Servicer furnishes to the Trustee, an Officer’s Certificate evidencing the determination by such Servicer, in its reasonable judgment, that such Monthly Advance would be non-recoverable from Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds (including the proceeds of the applicable Federal Insurance) or otherwise with respect to such Mortgage Loan (a “Non-Recoverability Certificate”). If (i) a Servicer reports a delinquency on a Remittance Report, and (ii) such Servicer, by 11 a.m. (New York Time) on the related Distribution Date, neither makes a Monthly Advance nor provides the Trustee with a Non-Recoverability Certificate with respect to such delinquency, then the Trustee shall deposit, from its own funds, the amount of such Monthly Advance (a “Trustee Advance”) into the Certificate Account for distribution to Certificateholders as provided in the Trust Agreement. Notwithstanding the foregoing, if the Trustee, in its reasonable judgment, determines that such Monthly Advance would be non-recoverable from Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds (including the proceeds of the applicable Federal Insurance) or otherwise with respect to such Mortgage Loan, then the Trustee shall not be obligated to make such Trustee Advance. (b) Each Servicer is obligated under the applicable Servicing Agreement to remit to the Trustee the required remittance on each Remittance Date. If (i) a Servicer fails to remit such remittance on any Remittance Date, (ii) such failure is not cured by 11 a.m. (New York Time) on the related Distribution Date, and (iii) pursuant to the terms of such Servicing Agreement, the related Collection Account has been established as a segregated account in the name of the Trustee for the benefit of the Trustee, then the Trustee shall withdraw the amount of such required remittance from such Collection Account, to the extent that such amount is on deposit in such Collection Account, and shall deposit such amount in the Certificate Account. (c) All Trustee Advances, together with interest thereon at a rate equal to the prevailing Prime Rate plus 2.0%, shall be reimbursable to the Trustee on a first priority basis from deposits to the Collection Account of late collections, Insurance Proceeds, Liquidation Proceeds and Condemnation Proceeds from a Mortgage Loan as to which a Trustee Advance has been made. The Trustee’s right to reimbursement as provided in this paragraph (c) shall not negate its obligation to continue to make Trustee Advances as provided in paragraph (a) of this Section 3.05. To the extent Trustee Advances are not recoverable as set forth in the first sentence of this paragraph (c), the Trustee shall be entitled to recover such Trustee Advances together with interest thereon, as provided in Section 3.01(b). (d) To the extent that the Servicer is required to pay penalty interest pursuant to the Servicing Agreement, and the Trustee makes any Trustee Advance, the Trustee in it is individual capacity shall be entitled to retain such penalty interest.

Trustee Advances. (a) Under the terms of each Servicing Agreement, on the Business Day prior to each Remittance Date, the related Servicer is obligated to make a Monthly Advance with respect to any delinquencies as of the related Distribution Date, unless such Servicer furnishes to the Trustee, an Officer’s Certificate evidencing the determination by such Servicer, in its reasonable judgment, that such Monthly Advance would be non-recoverable from Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds (including the proceeds of the applicable Federal Insurance) or otherwise with respect to such Mortgage Loan (a “"Non-Recoverability Certificate”"). If (i) a Servicer reports a delinquency on a Remittance Report, and (ii) such Servicer, by 11 a.m. (New York Time) on the related Distribution Date, neither makes a Monthly Advance nor provides the Trustee with a Non-Recoverability Certificate with respect to for such delinquency, then the Trustee shall deposit, from its own funds, the amount of such Monthly Advance (a “"Trustee Advance”") into the Certificate related Distribution Account for distribution to Certificateholders as provided in the Trust Agreement. Notwithstanding the foregoing, if the Trustee, in its reasonable judgment, determines that such Monthly Advance would be non-recoverable from Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds (including the proceeds of the applicable Federal Insurance) or otherwise with respect to such Mortgage Loan, then the Trustee shall not be obligated to make such Trustee Advance. (b) Each Servicer is obligated under the applicable Servicing Agreement to remit to the Trustee the required remittance on each Remittance Date. If (i) a Servicer fails to remit such remittance on any Remittance Date, (ii) such failure is not cured by 11 a.m. (New York Time) on the related Distribution Date, and (iii) pursuant to the terms of such Servicing Agreement, the related Collection Account has been established as a segregated account in the name of the Trustee for the benefit of the Trustee, then the Trustee shall withdraw the amount of such required remittance from such Collection Account, to the extent that such amount is on deposit in such Collection Account, and shall deposit such amount in the Certificate related Distribution Account. (c) All Trustee Advances, together with interest thereon at a rate equal to the prevailing Prime Rate plus 2.0%, shall be reimbursable to the Trustee on a first priority basis from deposits to the Collection Account of late collections, Insurance Proceeds, Liquidation Proceeds and Condemnation Proceeds from a Mortgage Loan as to which a Trustee Advance has been made. The Trustee’s right to reimbursement as provided in this paragraph (c) shall not negate its obligation to continue to make Trustee Advances as provided in paragraph (a) of this Section 3.053.04. To the extent Trustee Advances are not recoverable as set forth in the first sentence of this paragraph (c), the Trustee shall be entitled to recover such Trustee Advances together with interest thereon, as provided in Section 3.01(b). (d) To the extent that the Servicer is required to pay penalty interest pursuant to the Servicing Agreement, and the Trustee makes any Trustee Advance, the Trustee in it is individual capacity shall be entitled to retain such penalty interest.

Trustee Advances. (a) Under The Trustee may, but need not, advance to Holders of the terms of Floater Certificates on each Servicing Agreement, on the Business Day prior Floater Certificate Interest Payment Date an amount up to each Remittance Date, the related Servicer is obligated to make a Monthly Advance with respect to any delinquencies as of the related Distribution DateFloater Certificate Interest Amount (each, unless such Servicer furnishes to the Trustee, an Officer’s Certificate evidencing the determination by such Servicer, in its reasonable judgment, that such Monthly Advance would be non-recoverable from Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds (including the proceeds of the applicable Federal Insurance) or otherwise with respect to such Mortgage Loan (a “Non-Recoverability Certificate”). If (i) a Servicer reports a delinquency on a Remittance Report, and (ii) such Servicer, by 11 a.m. (New York Time) on the related Distribution Date, neither makes a Monthly Advance nor provides the Trustee with a Non-Recoverability Certificate with respect to such delinquency, then the Trustee shall deposit, from its own funds, the amount of such Monthly Advance (a “Trustee Advance”) into ). The decision by the Certificate Account for distribution Trustee to Certificateholders as provided advance any such amount shall be made in the Trust Agreement. Notwithstanding the foregoing, if the Trustee, in its reasonable judgment, determines that such Monthly Advance would be non-recoverable from Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds (including the proceeds sole discretion of the applicable Federal Insurance) or otherwise with respect Trustee and no decision to such Mortgage Loan, then the Trustee advance funds shall not be obligated impose any obligation to make such Trustee Advanceadvance any further amount. (b) Each Servicer is obligated under The Trustee shall be entitled to receive in respect of any Trustee Advances a fee (the applicable Servicing Agreement to remit to the “Trustee the required remittance on each Remittance Date. If (i) a Servicer fails to remit such remittance on any Remittance DateAdvance Fee”), (ii) such failure is not cured by 11 a.m. (New York Time) which shall be calculated based on the related Distribution Date, method and (iii) pursuant to paid on the terms of such Servicing Agreement, dates and in accordance with the related Collection Account has been established as a segregated account in the name priority of the Trustee for the benefit of the TrusteeFee, then the Trustee as shall withdraw the amount of such required remittance from such Collection Account, to the extent that such amount is on deposit in such Collection Account, and shall deposit such amount be set forth in the Certificate AccountSeries Trust Agreement. (c) All Trustee Advances, together with interest thereon at a rate equal to the prevailing Prime Rate plus 2.0%, Advances shall be reimbursable to reimbursed from interest payments received on the Trustee on a first priority basis from deposits to the Collection Account of late collections, Insurance Proceeds, Liquidation Proceeds and Condemnation Proceeds from a Mortgage Loan as to which a Trustee Advance has been made. The Trustee’s right to reimbursement Bonds as provided in this paragraph Sections 3.2 and as elsewhere provided herein upon the withdrawal, sale or redemption of Bonds. (cd) shall not negate its obligation to continue to make Although it is expected that the Trustee will be reimbursed for Trustee Advances from interest on or the proceeds of the withdrawal, sale or redemption of a particular Maturity of Bonds as provided in paragraph (aherein, the security interest of the Trustee granted pursuant to Section 3.7(e) extends to all Maturities of this Section 3.05. To Bonds of the extent related Series and, if for any reason the Trustee is not reimbursed for such Trustee Advances are not recoverable as set forth in the first sentence from such interest or proceeds with respect to a particular Maturity of this paragraph (c)Bonds, the Trustee shall be entitled to recover be reimbursed for such Trustee Advances together from the interest or proceeds with interest thereon, as provided in Section 3.01(b)respect to other Maturities of Bonds of the related Series. (de) To As security for the extent payment of all unreimbursed Trustee Advances (regardless of the Maturity with respect to which such Trustee Advance was made), the Trust hereby assigns and pledges to the Trustee and grants to the Trustee a first priority security interest in all of its right, title and interest, whether now owned or hereafter acquired, in, to, and under all Bonds (regardless of Maturity) and all proceeds thereof. The Trustor has taken, or caused to be taken, all applicable steps required for the perfection of the security interest created pursuant to this paragraph, and shall take, or cause to be taken, all steps necessary to continue such perfection throughout the term of the Agreement. (f) By purchasing any Certificate or any beneficial interests therein, the Holders and Beneficial Owners of Certificates shall be deemed to acknowledge that the Servicer is required Bonds and all proceeds thereof are subject to pay penalty the security interest granted pursuant to the Servicing Agreement, and the Trustee makes any Trustee Advance, the Trustee in it is individual capacity shall be entitled to retain such penalty interestSection 3.7(e).