Common use of Formation and Good Standing Clause in Contracts

Formation and Good Standing. The Servicer is a limited liability company, and the Subservicer is a corporation, formed, validly existing and in good standing under the laws of the jurisdiction of its formation and has the power to own its assets and to transact the business in which it is currently engaged. Each of the Servicer and the Subservicer is duly qualified to do business as a foreign limited liability company or corporation and is in good standing in each jurisdiction in which the character of the business transacted by it or properties owned or leased by it requires such qualification and in which the failure so to qualify would have a material adverse effect on the business, properties, assets, or condition (financial or other) of the Servicer or the Subservicer, as applicable.