Common use of Early Payment Default Clause in Contracts

Early Payment Default. With respect to any Mortgage Loan, if the related Mortgagor fails to make (a) the Mortgage Loan’s first Monthly Payment after origination on or prior to the date which is thirty days after the related Due Date or (b) the first Monthly Payment due to the Initial Purchaser after the related Funding Date on or prior to the date which is thirty days after the related Due Date, the related Seller shall, upon receipt of notice from the Initial Purchaser, promptly repurchase such Mortgage Loan from the Purchaser in accordance with Section 3.04 hereof. In the event that any such Mortgage Loan prepays in full during the period between the Cut-off Date and the Funding Date, the Seller shall either (i) substitute a Mortgage Loan for the Mortgage Loan that prepaid in full, (ii) shall consent to a readjustment of the Purchase Price, or (iii) pay the Initial Purchaser, within thirty (30) days of receipt of notice of such prepayment in full, the difference between the Purchase Price (as adjusted) for such Mortgage Loan and the outstanding principal balance of such Mortgage Loan as of the Cut-off Date.