Custodian’s Review of Loan Files Clause Samples
The "Custodian’s Review of Loan Files" clause establishes the custodian’s responsibility to examine and verify the contents of loan files held in trust. In practice, this means the custodian will check that all required documents are present, complete, and conform to specified standards before certifying the files or releasing funds. This process helps ensure the integrity and accuracy of loan documentation, reducing the risk of errors or fraud and providing assurance to all parties involved in the transaction.
Custodian’s Review of Loan Files. On and after the date hereof, ACAS shall deliver to the Custodian a Loan Checklist for each Loan File simultaneously with the delivery of any Loan Files. Not later than five (5) business days following the Custodian’s receipt of any Loan Files and the related Loan Checklists from ACAS, the Custodian shall review such Loan Files in accordance with the procedures set forth in this Section 1.02 and promptly deliver to ACAS a receipt in the form attached hereto as Exhibit B (a “Receipt”) with respect to such Loan Files. If the Custodian during the process of reviewing the Loan Files finds any document constituting a part of a Loan File that is not properly executed, has not been received, is unrelated to a Loan identified in the related Loan Checklist, or does not conform to the description as set forth in the related Loan Checklist, the Custodian shall promptly so notify ACAS by listing such exceptions on Schedule B to the related Receipt. In addition, if in the process of reviewing any Loan File, the Custodian discovers that it has any documents in its possession that are not listed on the related Loan Checklist, the Custodian shall promptly return any such documents to ACAS. In performing any such reviews, the Custodian may conclusively rely on ACAS as to the purported genuineness of any such document and any signature thereon. It is understood that the scope of the Custodian’s review of the Loan Files is limited solely to confirming that the documents listed on the applicable Loan Checklist have been executed and received and relate to the Loans identified in such Loan Checklist; provided, however, with respect to the UCC financing statements referenced in the definition of Loan File, the Custodian’s sole responsibility will be to confirm that the Loan File contains UCC financing statements, if applicable or as identified on the Loan Checklist, and not to make determinations about the materiality of such UCC financing statements. For the avoidance of doubt, the parties hereto acknowledge that for Loan Files delivered prior to the date hereof, Loan Checklists are included in some, but not all, Loan Files being held by the Custodian (i.e., Loan Checklists may be included in Loan Files transferred from ACS Funding Trust I and ACS Funding Trust II, but not in other Loan Files delivered to the Custodian).
Custodian’s Review of Loan Files. MCG shall deliver to the Custodian a Loan File Checklist for each Loan File and a List of Loans simultaneously with the delivery of any Loan Files. Not later than five (5) business days following the Custodian’s receipt of Loan Files from MCG, the Custodian shall review the Loan Files in accordance with the procedures set forth in this Section 1.02. If the Custodian, during the process of reviewing the Loan Files, finds that any document listed on the Loan File Checklist for a related Loan File has not been received, is not executed (if applicable) or is not an original (if required by the related Loan File Checklist), the Custodian shall so notify MCG. In addition, if the Custodian, during the process of reviewing the Loan Files, discovers that it has any documents in its possession that are not listed on a Loan File Checklist with respect to a Loan File, the Custodian shall promptly notify MCG and return any such documents to MCG. In performing any such review, the Custodian may conclusively rely on MCG as to the purported genuineness of any such document and any signature thereon. It is understood that the scope of the Custodian’s review of the Loan Files is limited solely to confirming that the documents listed on the related Loan File Checklist have been received, executed (if applicable), are originals (if required by the Loan File Checklist), and relate to the Loans identified in the List of Loans.