Failure to Underwrite Clause Samples
The 'Failure to Underwrite' clause defines the consequences and procedures that apply if an underwriter does not fulfill their obligation to purchase or guarantee the sale of securities as agreed. Typically, this clause outlines the remedies available to the issuer, such as the right to seek alternative underwriters, claim damages, or terminate the agreement. Its core practical function is to protect the issuer from financial and operational risks that arise if the underwriter fails to perform, ensuring the offering process can proceed or be remedied efficiently.
Failure to Underwrite. In the event all or a portion of the amount of the Variable Loan set forth in the Conversion Request cannot be converted because the increased debt service on the Fixed Loan does not result in the Collateral Pool satisfying the Coverage and LTV Tests, Borrower shall prepay the amount of the Variable Loan that cannot be converted to a Fixed Loan and shall pay all prepayment premiums and other fees associated with such prepayment.
Failure to Underwrite. In the event that the Coverage and LTV Tests would not be satisfied after the proposed Conversion, if Borrower continues to elect the Conversion, Borrower shall prepay a portion of the Advances Outstanding pursuant to Section 3.04(e) to meet the Coverage and LTV Tests and shall pay all prepayment premiums and other fees associated with such prepayment.
Failure to Underwrite. In the event all or a portion of the amount of the SARM Variable Advance set forth in the Conversion Request cannot be converted because the increased debt service on the Fixed Advance does not result in the Collateral Pool satisfying the Coverage and LTV Tests, Borrower shall prepay the amount of the SARM Variable Advance that cannot be converted to a Fixed Advance and shall pay all prepayment premiums and other fees associated with such prepayment.