Common use of Commitment Penalty Clause in Contracts

Commitment Penalty. IF FOR ANY REASON BORROWER FAILS TO DELIVER AT LEAST NINETY-FIVE PERCENT (95%) OF THE COMMITMENT AMOUNT TO LENDER WITHIN THE COMMITMENT PERIOD, BORROWER SHALL BE OBLIGATED TO PAY TO LENDER, WITHIN TEN (10) CALENDAR DAYS OF THE LAST DAY OF THE COMMITMENT PERIOD, A COMMITMENT PENALTY, The information above marked by an * and [ ] has been omitted pursuant to a request for confidential treatment. The omitted portion has been separately filed with the Commission. AS SET FORTH BELOW, SUCH SUM BEING AGREED BY BORROWER AND LENDER AS LIQUIDATED DAMAGES. THE PARTIES AGREE THAT LENDER'S ACTUAL DAMAGES IN THE EVENT OF BORROWER'S FAILURE TO DELIVER THE COMMITMENT AMOUNT, WOULD BE DIFFICULT TO ASCERTAIN, AND THE COMMITMENT PENALTY IS REASONABLE AS LIQUIDATED DAMAGES. THIS PROVISION SHALL NOT BE DEEMED TO LIMIT LENDER'S RIGHT TO OTHER REMEDIES PROVIDED HEREIN OR IN THE AGREEMENT WITH RESPECT TO OTHER COVENANTS, REPRESENTATIONS AND WARRANTIES OF BORROWER. THE COMMITMENT PENALTY SHALL BE DETERMINED BASED UPON THE PERCENTAGE OF THE COMMITMENT THAT THE BORROWER ACHIEVES. THE COMMITMENT PENALTY WILL BE CALCULATED BY ADDING THE FOLLOWING COMMITMENT FEE TO THE PAR WAC FOR THE MORTGAGE LOANS THAT THE LENDER PURCHASED AND THE COMMITMENT PENALTY WILL EQUAL THE DIFFERENCE BETWEEN THE ADJUSTED PRICE FOR THE MORTGAGE LOANS AND THE PRICE THE LENDER ACTUALLY PAID. COMMITMENT AMOUNT: COMMITMENT FEE: -------------------- ------------------------ 0 -50.00% [***] BASIS POINTS 50.01-75.00% [***] BASIS POINTS 75.01-95.00% [***] BASIS POINTS Lender and Borrower agree that Borrower shall be given credit for purposes of calculating the Commitment Amount, for the Mortgage Loans that conform to the Underwriting Guidelines of Borrower that are offered by Borrower and are not purchased by Lender.

Commitment Penalty. IF FOR ANY REASON BORROWER FAILS TO DELIVER AT LEAST NINETY-FIVE PERCENT (95%) OF THE COMMITMENT AMOUNT TO LENDER WITHIN THE COMMITMENT PERIOD, BORROWER SHALL BE OBLIGATED TO PAY TO LENDER, WITHIN TEN (10) CALENDAR DAYS OF THE LAST DAY OF THE COMMITMENT PERIOD, A COMMITMENT PENALTY, The information above marked by an * and [ ] has been omitted pursuant to a request for confidential treatment. The omitted portion has been separately filed with the Commission. AS SET FORTH BELOW, SUCH SUM BEING AGREED BY BORROWER AND LENDER AS LIQUIDATED DAMAGES. THE PARTIES AGREE THAT LENDER'S ACTUAL DAMAGES IN THE EVENT OF BORROWER'S FAILURE TO DELIVER THE COMMITMENT AMOUNT, WOULD BE DIFFICULT TO ASCERTAIN, AND THE COMMITMENT PENALTY IS REASONABLE AS LIQUIDATED DAMAGES. THIS PROVISION SHALL NOT BE DEEMED TO LIMIT LENDER'S RIGHT TO OTHER REMEDIES PROVIDED HEREIN OR IN THE AGREEMENT WITH RESPECT TO OTHER COVENANTS, REPRESENTATIONS AND WARRANTIES OF BORROWER. THE COMMITMENT PENALTY SHALL BE DETERMINED BASED UPON THE PERCENTAGE OF THE COMMITMENT THAT THE BORROWER ACHIEVES. THE COMMITMENT PENALTY WILL BE CALCULATED BY ADDING THE FOLLOWING COMMITMENT FEE TO THE PAR WAC FOR THE MORTGAGE LOANS THAT THE LENDER PURCHASED AND THE COMMITMENT PENALTY WILL EQUAL THE DIFFERENCE BETWEEN THE ADJUSTED PRICE FOR THE MORTGAGE LOANS AND THE PRICE THE LENDER ACTUALLY PAID. COMMITMENT AMOUNT: COMMITMENT FEE: -------------------- ------------------------ 0 -50.00% [***] BASIS POINTS 50.01-75.00% [***] BASIS POINTS 75.01-95.00% [***] BASIS POINTS Lender and Borrower agree that Borrower shall be given credit for purposes of calculating the Commitment Amount, for the Mortgage Loans that conform to the Underwriting Guidelines of Borrower that are offered by Borrower and are not purchased by Lender.