Common use of Before a Default or an Event of Default Clause in Contracts

Before a Default or an Event of Default. If no Default or Event of Default exists, all Income described in Section 5.01 and other amounts deposited into the Waterfall Account during each Pricing Period shall be applied by Deposit Account Bank on the next following Remittance Date in the following order of priority: first, to pay to Buyer an amount equal to the Price Differential accrued with respect to all Purchased Assets as of such Remittance Date; second, to pay to Buyer an amount equal to all default interest, late fees, fees, expenses and Indemnified Amounts then due and payable from Seller and other applicable Persons to Buyer under the Repurchase Documents; third, to pay to Buyer an amount sufficient to eliminate any outstanding Margin Call (without limiting Seller’s obligation to satisfy a Margin Call in a timely manner as required by Section 4.01); fourth, to pay any custodial fees and expenses due and payable under the Custodial Agreement; fifth, to pay to Buyer, the Applicable Percentage of any Principal Payments (to the extent actually deposited into the Waterfall Account); sixth, to pay to Buyer the Release Amount then due pursuant to Section 3.05, if any, which Release Amount shall be applied to reduce the then-current unpaid Purchase Prices of one or more of the remaining Purchased Assets, as Buyer shall determine in its discretion; seventh, to pay to Buyer any other amounts due and payable from Seller and other applicable Persons to Buyer under the Repurchase Documents; and -50- LEGAL02/38049601v7

Before a Default or an Event of Default. If no Default or Event of Default exists, all Income described in Section 5.01 and other amounts deposited into the Waterfall Account during each Pricing Period shall be applied by Deposit Waterfall Account Bank on by no later than the next following Remittance Date in the following order of priority: first, to pay all then-currently due and payable servicing fees to Buyer (or its designated Servicer), and to reimburse Buyer (or its designated Servicer) for any and all costs, expenses, advances and similar amounts incurred by Buyer (or its designated Servicer) in connection with the servicing of the Purchased Assets, if not previously deducted by Servicer from the Servicer Agreement Account; second, to pay to Buyer an amount equal to the Price Differential accrued with respect to all Purchased Assets as of such Remittance Date; secondthird, to pay to Buyer an amount equal to all default interest, late fees, fees, expenses and Indemnified Amounts then due and payable from Seller and other applicable Persons to Buyer under the Repurchase Documents; thirdfourth, to pay to Buyer an amount sufficient to eliminate any outstanding Margin Call Deficit (without limiting Seller’s obligation to satisfy a Margin Call Deficit in a timely manner as required by Section 4.01); fourthfifth, to pay any custodial fees and expenses due and payable under the Custodial Agreement; fifthsixth, to pay to Buyer, the Applicable Percentage of any Principal Payments (Payments, but only to the extent actually deposited into that such remittance would not result in the Waterfall Account); sixthcreation of a Margin Deficit, to pay to Buyer the Release Amount then due pursuant to Section 3.05, if any, which Release Amount shall be applied to reduce the then-current unpaid outstanding Purchase Prices Price of one or more of the remaining Purchased Assets, as Buyer shall determine in its discretion, with the balance of any such Principal Payments to be paid to Seller for its own account, subject, however, to the covenants and other requirements of the Repurchase Documents; seventh, to pay to Buyer any other amounts due and payable from Seller and other applicable Persons to Buyer under the Repurchase Documents; and -50- LEGAL02/38049601v7eighth, to pay to Seller any remainder for its own account, subject, however, to the covenants and other requirements of the Repurchase Documents.

Before a Default or an Event of Default. If no Default or Event of Default exists, all Income described in Section 5.01 and other amounts deposited into the Waterfall Securities Account during each Pricing Period shall shall, subject to Section 3.05, be applied by Deposit Securities Account Bank on Bank, at the written direction of Buyer, by no later than the next following Remittance Date in the following order of priority: first, to pay to Buyer an amount equal to the Price Differential accrued with respect to all Purchased Assets as of such Remittance Date; second, to pay to Buyer an amount equal to all default interest, late fees, fees, expenses and Indemnified Amounts then due and payable from Seller and other applicable Persons to Buyer under the Repurchase Documents; third, to pay to Buyer an amount sufficient to eliminate any outstanding Margin Call (without limiting Seller’s obligation to satisfy a Margin Call in a timely manner as required by Section 4.01); fourth, to pay any custodial fees and expenses due and payable under the Custodial Agreement; fourth, to pay to Buyer an amount sufficient to eliminate any outstanding Margin Deficit (without limiting Seller's obligation to satisfy a Margin Deficit in a timely manner as required by Section 4.01); fifth, to pay to Buyer, the Applicable Percentage of any Principal Payments (to the extent actually deposited into the Waterfall Securities Account); sixth, but only to the extent that such remittance would not result in the creation of a Margin Deficit, to pay to Buyer the Release Amount then due pursuant to Section 3.05, if any, which Release Amount shall be applied to reduce the then-current unpaid outstanding Purchase Prices Price of one or more of the remaining Purchased Assets, as Buyer shall determine in its discretiondetermine; seventhsixth, to pay to Buyer any other amounts due and payable from Seller and other applicable Persons to Buyer under the Repurchase Documents; and -50- LEGAL02/38049601v7seventh, to pay to Seller any remainder for its own account subject, however, to the covenants and other requirements of the Repurchase Documents.