First Payment Default Clause Samples
The First Payment Default clause defines the consequences and procedures that apply if a borrower fails to make their very first scheduled payment under a loan or credit agreement. Typically, this clause triggers immediate remedies for the lender, such as the right to accelerate the loan, demand full repayment, or impose penalties, without the usual grace periods that might apply to later missed payments. Its core function is to protect lenders from borrowers who demonstrate an inability or unwillingness to meet their obligations from the outset, thereby minimizing risk and potential losses early in the lending relationship.
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First Payment Default. The Seller shall repurchase at the Purchase Price, all Mortgage Loans that fail to make the first scheduled monthly payment due to the Purchaser within thirty (30) days of when such payment is due (an “FPD”). In the event an FPD occurs, the repurchase price shall be equal to (i) the product of the Purchase Price percentage set forth in this Commitment Letter, together with any adjustments as provided herein, and the Stated Principal Balance of the related Mortgage Loan as of the date on which such repurchase is effective, plus (ii) interest on such Stated Principal Balance at the Mortgage Loan Remittance Rate from the date on which interest has last been distributed to the Purchaser through the last day of the month in which such repurchase is effective, less amounts received or advanced in respect of such repurchased Mortgage Loan which are being held in the Custodial Account for distribution in the month of repurchase.
First Payment Default. In the event any Mortgage Loan has a First Payment Default (as defined below), the Company agrees to promptly repurchase such Mortgage Loan in accordance with Section 3.03 hereof without regard to any cure period except what is stated in this Section 3.04. First Payment Default is defined as any Mortgage Loan which the Mortgagor fails to make its first scheduled Monthly Payment due on the Mortgage Loan and such default continues for 30 days from the Due Date of such first scheduled Monthly Payment.
First Payment Default. For each contract purchased by Company, Dealer warrants that they customer shall make, from their funds, the first payment in full on or before the payment is due. Dealer shall not pay nor assist customer in making such payment.
First Payment Default. With respect to any Mortgage Loan, if the related Mortgagor fails to make the first Monthly Payment due to the Purchaser after the related Closing Date within 30 days of the related Due Date, the Seller shall, upon receipt of notice from the Purchaser, promptly repurchase such Mortgage Loan (a "First Payment Default Mortgage Loan") from the Purchaser. For example, a Mortgage Loan whose first monthly payment due the Purchaser is February 1, 2004 but such monthly payment is not received until after February 29, 2004, such Mortgage Loan is a First Payment Default Mortgage Loan and a Mortgage Loan whose first Monthly Payment due the Purchaser is March 1, 2004, such Mortgage Loan becomes a First Payment Default Mortgage Loan when the monthly payment is received after March 31, 2004.
First Payment Default. The Company shall repurchase at the Purchase Price, all Mortgage Loans that fail to make the first scheduled Monthly Payment due to the Purchaser within thirty (30) days of when such payment is due.
First Payment Default. In the event the Mortgagor fails to make the first Monthly Payment due after the Closing Date, the Company will repurchase the Mortgage Loan at the Purchase Price.
First Payment Default. If the related Mortgagor either (i) becomes 30 or more days delinquent with respect to the Mortgage Loan's first contractual Monthly Payment or (ii) fails to make its first payment to the Purchaser and has not been remedied within 45 days of the date such payment is due, the Company, at the Purchaser's option, shall repurchase such Mortgage Loan from the Purchaser at the purchase price set forth in the Commitment Letter, together with any adjustments as provided therein.
First Payment Default. Any Claim arising from a Default due to the failure of the Borrower to have made or to make the first regular periodic payment on the Loan from the Borrower's Own Funds.
First Payment Default. The Company shall repurchase any Mortgage Loan for which the first scheduled Monthly Payment due on such Mortgage Loan is not made within the calendar month such payment is due at a price equal to (i) the purchase price set forth in the Commitment Letter, together with any adjustments as provided therein, plus (ii) interest on such Stated Principal Balance at the Mortgage Loan Remittance Rate from the date on which interest has last been paid and distributed to the Purchaser to the last day of the month in which the repurchase occurs, less amounts received or advanced in respect of such repurchased Mortgage Loan which are being held in the Custodial Account for distribution in the month of repurchase.
First Payment Default. In the event that a Mortgage Loan does not make its monthly payment within 30 days in which the first payment is due to the Purchaser such Mortgage Loan will be classified as a first payment default ("First Payment Default"). Seller agrees to repurchase those First Payment Default Mortgage Loans at the Repurchase Price within twenty (20) days of the first payment default.