Causes Permitting Termination Clause Samples

Causes Permitting Termination. SECTION 6.01 Causes of Termination by the Department. (a) Failure by the Servicer duly to observe or perform in any material respect any of the covenants, conditions or agreements in this Agreement or in the Origination Agreement to be observed or performed by it, (i) which demonstrates a pattern of repeated material failure to perform a covenant, condition or agreement in this Agreement or in the Origination Agreement to be observed or performed by it, or (ii) which continues for a period of sixty (60) days after written notice, specifying such failure and requesting that it be remedied, is given to the Servicer by the Department, unless the Department shall agree in writing to an extension of such time prior to its expiration; provided, however, if the failure stated in the notice is correctable and cannot be corrected within the applicable time period, the Department will not unreasonably withhold its consent to an extension of such time if corrective action is instituted by the Servicer within the applicable period and diligently pursued until the default is corrected. (b) A decree or order of a court or agency or supervisory authority having jurisdiction in the premises for the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings, or for the winding-up or liquidation of its affairs, shall have been entered against the Servicer and such decree or order shall have remained in force, undischarged or unstayed for a period of sixty (60) days. (c) The Servicer shall consent to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings of the Servicer. (d) The Servicer shall admit in writing its inability to pay its debts generally as they become due, file a petition to take advantage of any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors, or voluntarily suspend payment of its obligations. (e) The Department shall discover or be notified that any representation of or warranty by the Servicer set forth herein or in the other Program Documents is false in any material respect. The Servicer shall have an opportunity to correct the false warranty within sixty (60) days after the notice to the Servicer unless the Department agrees in writing to an extension of such time prior to its expiration; provided, howeve...