Defective Documents Sample Clauses
The 'Defective Documents' clause defines the procedures and consequences when documents provided under a contract are found to be incorrect, incomplete, or otherwise non-compliant with agreed requirements. Typically, this clause obligates the responsible party to promptly correct or replace any such documents at their own expense, and may specify timelines or remedies if the issue is not resolved. Its core function is to ensure the accuracy and reliability of contractual documentation, thereby minimizing misunderstandings and protecting parties from the risks associated with faulty or inadequate paperwork.
Defective Documents. If the Purchaser finds any document or documents constituting a part of a Submitted Mortgage File which was delivered or which was to be delivered by the Seller to the Purchaser (including documents in the Submitted Mortgage File which were received by the Seller from its borrower) to be defective or missing in any material respect (a “Defect”), the Purchaser shall so notify the Seller within sixty (60) days of discovery by the Purchaser of the Defect. If the Seller finds a Defect, the Seller shall promptly so notify the Purchaser. The Seller shall have a period of forty (40) days following receipt of written demand for correction or cure from the Purchaser within which to correct or cure any such Defect after the Seller is notified of same. If the Defect is capable of cure, but is not reasonably expected to be cured within such forty (40) day period, the Seller may, by written notice to the Purchaser, request additional time within which to effect correction or cure. The Purchaser shall have no obligation to grant any such extension of time for correction or cure. If the Purchaser does grant such an extension of time, the Seller shall have such additional time for correction or cure as is expressly granted in writing by the Purchaser. The Seller hereby covenants and agrees that, if the Defect is not corrected or cured within the applicable cure period described above, the Seller will, upon the expiration of such cure period, repurchase the related Mortgage Loan in the manner set forth in Section 3.03. Discovery by the Purchaser or the Seller of the possible existence of fraud in connection with a Mortgage Loan shall not constitute a Defect, but shall be governed by the provisions of Sections 3.02(iv) and 3.03.
Defective Documents. (a) Notwithstanding the review of the Mortgage Loan File and accompanying documents by the Authority and/or delivery of a Certificate of Code Compliance Review by the Authority pursuant to Sections 3.05 and 3.06 hereof, if at any time any document or documents constituting a part of a Mortgage Loan File are, in the reasonable opinion of the Authority, Servicer or Trustee, defective or inaccurate in any material respect, Lender shall cure the defect or inaccuracy within thirty (30) days (or such shorter period of time as may be required by law) from the time Trustee, Servicer, or the Authority notifies it of the existence of such defect or inaccuracy. Lender hereby covenants and agrees as to all Mortgage Loans originated by it that, if any such material defect cannot be cured to the satisfaction of the Authority, Servicer or Trustee within such thirty (30)-day period (or such shorter period of time as may be required by law), it shall indemnify and hold harmless the Authority, Servicer and Trustee for any and all loss, damage or expense (including attorneys' fees) incurred by them in connection with any challenge to, or loss of, the tax-exempt status of the Bonds arising out of such defect, inaccuracy, non-delivery or unauthorized assumption. On or before the expiration of the cure periods as set forth above, Lender shall purchase the affected Mortgage Loans from the Authority of the Servicer or the applicable Certificate Provider (if any), as the case may be, for its own account at a price equal to the outstanding principal balance thereof plus accrued interest thereon, and, if applicable, Trustee and Servicer shall consider such purchase to be a prepayment of a Mortgage Loan within the Mortgage Loan Pool backing a Certificate.
(b) Notwithstanding the foregoing, in any case of defect, inaccuracy or misrepresentation in a Mortgagor's Affidavit and Certification (Exhibit D-8) pertaining to a requirement of the Code or the Act, Lender shall, where such defect, inaccuracy or misrepresentation constitutes a default under a Mortgage Loan that has not been purchased by the Authority or the Servicer, as the case may be, with respect to which RHS, FHA, VA or a PMI Insurer, whichever is applicable, provides coverage, proceed to declare all sums the payment of which is secured thereby to be immediately due and payable and to take all steps necessary to collect benefits pursuant to RHS, FHA, VA, or PMI Insurer, whichever is applicable.