Common use of Delinquency and Default Clause in Contracts

Delinquency and Default. (a) Subject to Section 3.01(g), in the event that any Mortgage Loan is in Early Stage Delinquency, Early Stage Default or Advanced Default, the Servicer shall proceed according to the Delegated Authority Guidelines. If the portion of any Liquidation Proceeds allocable as a recovery of interest on any Mortgage Loan is less than the full amount of accrued and unpaid interest on such Mortgage Loan as of the date such proceeds are received, then the applicable Servicing Fees with respect to such Mortgage Loan shall be paid first and any amounts remaining thereafter shall be deposited into the Servicer Custodial Account. (b) Consistent with the terms of this Agreement, the Servicer may pursue loss mitigation activities as set forth in the Delegated Authority Guidelines. Without limiting the generality of the foregoing and provided such action is in accordance with the Delegated Authority Guidelines, the Servicer in its own name or acting through subservicers or agents is hereby authorized and empowered when the Servicer believes it appropriate and reasonable in its best judgment, to execute and deliver, on behalf of itself and the Trustee, the Depositor, the Master Servicer, the Securities Administrator, the Custodian and the Certificateholders, all instruments of satisfaction or cancellation, or of partial or full release, discharge, sale and all other comparable instruments, with respect to the Mortgage Loans and the Mortgaged Properties and to institute foreclosure proceedings or obtain a deed in lieu of foreclosure so as to convert the ownership of such properties, and to hold or cause to be held title to such properties, on behalf of the Certificateholders pursuant to the provisions of Sections 3.02 and 3.11. (c) The Servicer shall deliver to the Custodian on behalf of the Trustee the original documents evidencing an assumption, Servicer Modification, consolidation or extension of any Mortgage Loan entered into in accordance with this Agreement. (d) Notwithstanding anything to the contrary herein or under the Delegated Authority Guidelines, no modification, sale, refinancing, foreclosure or similar action shall be permitted in respect of any Mortgage Loan unless such Mortgage Loan is in default or such default is, in the judgment of the Servicer or Interim Subservicer, reasonably foreseeable within the meaning of the REMIC Provisions.

Delinquency and Default. (a) Subject to Section 3.01(g3.01(f), in the event that any Mortgage Loan is in Default, Early Stage Delinquency, Early Stage Default or Advanced Default, the Servicer shall proceed according to the Delegated Authority Guidelines. If the portion of any Liquidation Proceeds allocable as a recovery of interest on any Mortgage Loan is less than the full amount of accrued and unpaid interest on such Mortgage Loan as of the date such proceeds are received, then the applicable Servicing Fees with respect to such Mortgage Loan shall be paid first and any amounts remaining thereafter shall be deposited into the Servicer Custodial Account. (b) Consistent with the terms of this Agreement, the Servicer may pursue loss mitigation activities as set forth in the Delegated Authority Guidelines. Without limiting the generality of the foregoing and provided such action is in accordance with the Delegated Authority Guidelines, the Servicer in its own name or acting through subservicers or agents is hereby authorized and empowered when the Servicer believes it appropriate and reasonable in its best judgment, to execute and deliver, on behalf of itself and the Trustee, the Depositor, the Master Servicer, the Securities Administrator, the Custodian and the Certificateholders, all instruments of satisfaction or cancellation, or of partial or full release, discharge, sale and all other comparable instruments, with respect to the Mortgage Loans and the Mortgaged Properties and to institute foreclosure proceedings or obtain a deed in lieu of foreclosure so as to convert the ownership of such properties, and to hold or cause to be held title to such properties, on behalf of the Certificateholders pursuant to the provisions of Sections 3.02 and 3.11. The proceeds of any such sale shall be deposited in the Servicer Custodial Account within two Business Days of receipt thereof. Upon receipt from the Servicer of notice of such deposit and a Request for Release, the Custodian, on behalf of the Trustee, shall release the Mortgage Files relating to such Mortgage Loans to the purchaser thereof, and the Trustee promptly shall execute and deliver such instruments of transfer or assignment, in each case without recourse, as shall reasonably be necessary to vest in such purchaser any Mortgage Loan released pursuant hereto. Upon such transfer or assignment, neither the Trustee nor the Custodian shall have any further responsibility with regard to such Mortgage Loan. (c) The Servicer shall deliver to the Custodian Custodian, on behalf of the Trustee Trustee, the original documents evidencing an assumption, Servicer Modification, consolidation or extension of any Mortgage Loan entered into in accordance with this Agreement. (d) Notwithstanding anything to the contrary herein or under the Delegated Authority GuidelinesGuidelines or Customary Servicing Procedures, no modification, sale, refinancing, foreclosure or similar action shall be permitted in respect of any Mortgage Loan unless such Mortgage Loan is in default or such default is, in the judgment of the Servicer or Interim SubservicerServicer, reasonably foreseeable within the meaning of the REMIC Provisions.