Title, Conservation and Disposition of REO Property Clause Samples
The "Title, Conservation and Disposition of REO Property" clause establishes the rules regarding ownership, maintenance, and eventual sale or transfer of real estate owned (REO) properties. It typically outlines who holds legal title to the property, the responsibilities for preserving and managing the property during the REO period, and the procedures for disposing of the property, such as through sale or transfer to a new owner. This clause ensures that there is clear authority and responsibility for the property, helping to protect its value and facilitate an orderly transition to new ownership.
Title, Conservation and Disposition of REO Property. (a) This Section shall apply only to REO Properties acquired for the account of the Trustee for the benefit of the Certificateholders and shall not apply to any REO Property relating to a Mortgage Loan which was purchased or repurchased from the Trustee pursuant to any provision hereof. In the event that title to any such REO Property is acquired, the applicable Servicer shall cause the deed or certificate of sale to be issued in the name of the Trustee, on behalf of the Certificateholders, or the Trustee's nominee.
(b) Each Servicer shall manage, conserve, protect and operate each REO Property for the Trustee for the benefit of the Certificateholders solely for the purpose of its prompt disposition and sale. Each Servicer, either itself or through an agent selected by such Servicer, shall manage, conserve, protect and operate the REO Property in the same manner that it manages, conserves, protects and operates other foreclosed property for its own account, and in the same manner that similar property in the same locality as the REO Property is managed. Each Servicer shall attempt to sell the same (and may temporarily rent the same for a period not greater than one year, except as otherwise provided below) on such terms and conditions as such Servicer deems to be in the best interest of the Master Servicer. Each Servicer shall notify the Master Servicer from time to time as to the status of each REO Property.
(c) Each Servicer shall use its best efforts to dispose of the REO Property as soon as possible (subject to the Master Servicer's right to veto any proposed sale of REO Property) and shall sell such REO Property in any event within three years after title has been taken to such REO Property, unless such Servicer determines, and gives an appropriate notice to the Trustee and the Master Servicer to such effect, that a longer period is necessary for the orderly liquidation of such REO Property. If a period longer than three years is permitted under the foregoing sentence and is necessary to sell any REO Property, such Servicer shall report monthly to the Securities Administrator and the Master Servicer as to the progress being made in selling such REO Property. Notwithstanding its veto rights, the Trustee has no obligation with respect to REO Dispositions.
(d) Each Servicer shall segregate and hold all funds collected and received in connection with the operation of any REO Property separate and apart from its own funds and general assets and shall depos...
Title, Conservation and Disposition of REO Property. This Section shall apply only to REO Properties acquired for the account of REMIC 1 and shall not apply to any REO Property relating to a Mortgage Loan which was purchased or repurchased from REMIC 1 pursuant to Sections 2.02, 2.04 or 3.
Title, Conservation and Disposition of REO Property. (a) This Section shall apply only to REO Properties acquired for the account of the Trustee and shall not apply to any REO Property relating to a Mortgage Loan which was purchased or repurchased from the Trustee pursuant to any provision hereof. In the event that title to any such REO Property is acquired, the applicable Servicer shall cause the deed or certificate of sale to be issued in the name of the Trustee, on behalf of the Certificateholders. Upon written request by the applicable Servicer, the Trustee shall provide such Servicer with a power of attorney prepared by such Servicer with respect to such REO Property.
(b) Each Servicer shall manage, conserve, protect and operate each REO Property for the Trustee solely for the purpose of its prompt disposition and sale. Each Servicer, either itself or through an agent selected by such Servicer, shall manage, conserve, protect and operate the REO Property in the same manner that it manages, conserves, protects and operates other foreclosed property for its own account, and in the same manner that similar property in the same locality as the REO Property is managed. Each Servicer shall attempt to sell the same (and may temporarily rent the same for a period not greater than one year, except as otherwise provided below) on such terms and conditions as such Servicer deems to be in the best interest of the Trustee on behalf of the Certificateholders. The applicable Servicer shall notify the Trustee, the Master Servicer, the Backup Servicer and the Securities Administrator from time to time as to the status of each REO Property.
(c) [Reserved].
(d) [Reserved].
(e) Each Servicer shall segregate and hold all funds collected and received in connection with the operation of any REO Property separate and apart from its own funds and general assets and shall deposit such funds in the related Collection Account.
(f) Each Servicer shall deposit net of reimbursement to such Servicer for any related outstanding P&I Advances, Servicing Advances and unpaid Servicing Fees provided in Section 3.11, or cause to be deposited, on a daily basis in the related Collection Account all revenues received with respect to the related REO Property and shall withdraw therefrom funds necessary for the proper operation, management and maintenance of the REO Property. The Master Servicer shall retain all initial proceeds from REO Properties until all liquidation proceeds with respect to such REO Properties have been received.
(g) Each Ser...
Title, Conservation and Disposition of REO Property. (a) The Master Servicer shall maintain, protect, and insure any REO Property acquired pursuant to Section 3.08 hereof, on behalf of the Trust, in accordance with standard industry practice solely for the purpose of its prompt disposition and sale and with a view toward maximizing the amount of principal and interest recovered on the Assets. During any period in which the Trust holds a REO Property, the Master Servicer shall not (1) lease the REO Property, (2) authorize or permit any construction on the REO Property, other than the completion of a building or improvement thereon, and then only if more than 10% of the construction of such building or other improvement was completed before default on the related Asset became imminent, all within the meaning of section 856(e)(4)(B) of the Code, or (3) allow the REO Property to be used in any trade or business conducted by the Trust. If one or more REMIC elections are made with respect to the assets of the Trust, the Master Servicer shall use its best efforts to dispose of such REO Property for its fair market value within 22 months after its acquisition by the Trust pursuant to the Master Servicer’s ordinary commercial practices. If the Master Servicer is unable to sell such REO Property in the course of its ordinary commercial practices within that 22-month period, the Master Servicer shall (a) purchase such REO Property at a price equal to such REO Property’s fair market value or (b) auction such REO Property to the highest bidder in an auction reasonably designed to produce a fair price (an “Auction”) that takes place within one month after the end of the 22-month period. If the Master Servicer and the Trustee either (1) receive an Opinion of Counsel indicating that, under then-current law, the REMIC may hold REO Property associated with a REMIC Asset for a period longer than two years without threatening the REMIC status of any related REMIC or causing the imposition of a tax upon any such REMIC or (2) the Master Servicer applies for and is granted an extension of such 22-month period pursuant to Code sections 860G(a)(8) and 856(e)(3) (the applicable period provided pursuant to such Opinion of Counsel or such Code section being referred to herein as an “Extended Holding Period”), upon the direction of the Depositor or the Trustee, the Master Servicer shall continue to attempt to sell such REO Property pursuant to its ordinary commercial practices until the date two months prior to the expiration of the Ext...
Title, Conservation and Disposition of REO Property. (a) This Section shall apply only to REO Properties acquired for the account of the Trustee and shall not apply to any REO Property relating to a Mortgage Loan which was purchased or repurchased from the Trustee pursuant to any provision hereof. In the event that title to any such REO Property is acquired, the deed or certificate of sale shall be issued to the Servicer, or to its nominee, on behalf of the Trustee.
(b) The Servicer shall manage, conserve, protect and operate each REO Property for the Trustee solely for the purpose of its prompt disposition and sale. The Servicer, either itself or through an agent selected by the Servicer, shall manage, conserve, protect and operate the REO Property in the same manner that it manages, conserves, protects and operates other foreclosed property for its own account, and in the same manner that similar property in the same locality as the REO Property is managed. The Servicer shall attempt to sell the same (and may temporarily rent the same for a period not greater than one year, except as otherwise provided below) on such terms and conditions as the Servicer deems to be in the best interest of the Trustee. The Servicer shall notify the Trustee from time to time as to the status of each REO Property.
(c) The Servicer shall use its best efforts to dispose of the REO Property as soon as possible (subject to the Trustee's right to veto any proposed sale of REO Property) and shall sell such REO Property in any event within three years after title has been taken to such REO Property. Notwithstanding its veto rights, the Trustee has no obligation with respect to REO dispositions.
(d) [Reserved.]
(e) The Servicer shall segregate and hold all funds collected and received in connection with the operation of any REO Property separate and apart from its own funds and general assets and shall deposit such funds in the Collection Account.
(f) The Servicer shall deposit net of reimbursement to the Servicer for any related outstanding Servicing Advances and unpaid Servicing Fees provided in Section 3.11 hereof, or cause to be deposited, on a daily basis in the Collection Account all revenues received with respect to the related REO Property and shall withdraw therefrom funds necessary for the proper operation, management and maintenance of the REO Property.
(g) The Servicer, upon an REO Disposition, shall be entitled to reimbursement for any related unreimbursed Servicing Advances as well as any unpaid Servicing Fees from proc...
Title, Conservation and Disposition of REO Property. (a) The Master Servicer shall maintain, protect, and insure any REO Property acquired pursuant to Section 3.08 hereof, on behalf of the Trust, in accordance with standard industry practice solely for the purpose of its prompt disposition and sale and with a view toward maximizing the amount of principal and interest recovered on
Title, Conservation and Disposition of REO Property. The Servicer shall manage, conserve, protect and operate each REO Property for the benefit of the Certificateholders solely for the purpose of its prompt disposition and sale. The Servicer, either itself or through an agent selected by the Servicer, shall manage, conserve, protect and operate the REO Property in the same manner that it manages, conserves, protects and operates other foreclosed property for its own account, and in the same manner that similar property in the same locality as the REO Property is managed. The Servicer shall attempt to sell the same (and may temporarily rent the same for a period not greater than one year, except as otherwise provided below) on such terms and conditions as the Servicer deems to be in the best interest of the Certificateholders. The Servicer shall notify the Trustee monthly as to the status of each REO Property. The Servicer shall also maintain on each REO Property fire and hazard insurance with extended coverage in amount which is at least equal to the maximum insurable value of the improvements which are a part of such property, liability insurance and, to the extent required and available under the Flood Disaster Protection Act of 1973, as amended, flood insurance in the amount required above. The Servicer shall segregate and hold all funds collected and received in connection with the operation of any REO Property in the Collection Account. The Servicer shall deposit net of reimbursement to the Servicer for any related outstanding Servicing Advances, any related unreimbursed Monthly Advances and unpaid Servicing Fees provided in Section 5.06 hereof, or cause to be deposited, on a daily basis in the Collection Account all revenues received with respect to the related REO Property and shall withdraw therefrom funds necessary for the proper operation, management and maintenance of the REO Property. The Servicer, upon the liquidation of any REO Property, shall be entitled to reimbursement for any related unreimbursed Servicing Advances and any unreimbursed related Monthly Advances as well as any unpaid Servicing Fees from REO Proceeds received in connection with such sale, as further provided in Section 5.12.
Title, Conservation and Disposition of REO Property. The Servicer shall manage, conserve, protect and operate each REO Property for the benefit of the Certificateholders solely for the purpose of its prompt disposition and sale. The Servicer, either itself or through an agent selected by the Servicer, shall manage, conserve, protect and operate the REO Property in the same manner that it manages, conserves, protects and operates other foreclosed property for its own account, and in the same manner that similar property in the same locality as the REO Property is managed. The Servicer shall attempt to sell the same (and may temporarily rent the same for a period not greater than one year, except as otherwise provided below) on such terms and conditions as the Servicer deems to be in the best interest of the
Title, Conservation and Disposition of REO Property. This Section shall apply only to REO Properties acquired for the account of any Trust Fund, and shall not apply to any REO Property relating to a Mortgage Loan which was purchased or repurchased from any Trust Fund pursuant to any provision hereof. In the event that title to any such REO Property is acquired, the deed or certificate of sale shall be issued to the Trustee, or to its nominee, on behalf of the Certificateholders of the applicable Series. The Master Servicer, on behalf of the applicable Trust Fund, shall either sell any REO Property on or before December 31 of the third calendar year following the calendar year in which such Trust Fund acquires ownership of such REO Property for purposes of Section 860G(a)(8) of the Code or, at the expense of such Trust Fund, request, more than 60 days before the day on which the three-year grace period would otherwise expire, an extension of the three-year grace period, unless the Master Servicer has delivered to the Trustee an Opinion of Counsel addressed to the Trustee and the Master Servicer, to the effect that the holding by such Trust Fund of such REO Property subsequent to such three year period will not result in the imposition of taxes on "prohibited transactions" thereof, as defined in Section 860F of the Code, or cause the Lower REMIC or the Upper REMIC to fail to qualify as a REMIC under the REMIC Provisions or comparable provisions of the laws of the any State at any time that any
Title, Conservation and Disposition of REO Property. (a) This Section shall apply only to REO Properties acquired for the account of the Trustee and shall not apply to any REO Property relating to a Mortgage Loan which was purchased or repurchased from the Trustee pursuant to any provision hereof. In the event that title to any such REO Property is acquired, the deed or certificate of sale shall be issued to the Servicer, or to its nominee, on behalf of the Trustee.
(b) The Servicer shall manage, conserve, protect and operate each REO Property for the Trustee solely for the purpose of its prompt disposition and sale. The Servicer, either itself or through an agent selected by the Servicer, shall manage, conserve, protect and operate the REO Property in the same manner that it manages, conserves, protects and operates other foreclosed property for its own account, and in the same manner that similar property in the same locality as the REO Property is managed. The Servicer shall attempt to sell the same (and may temporarily rent the same for a period not greater than one year, except as otherwise provided below) on such terms and conditions as the Servicer deems to be in the best interest of