Common use of Interest Shortfall Clause in Contracts

Interest Shortfall. The amount of interest due a third party owner of a Mortgage Loan following a payoff or Principal Prepayment where the interest accrued and due from the underlying Mortgagor is insufficient to pay the interest due to such third party owner pursuant to the terms of the applicable Guide or the terms of any Whole Loan Transfer, Private Securitization Transaction or Public Securitization Transaction. Such Interest Shortfall shall be the sole responsibility of the Owner.

Interest Shortfall. The amount of interest due a third party owner or guarantor of a Mortgage Loan following a payoff or Principal Prepayment where the interest accrued and due from the underlying Mortgagor is insufficient to pay the interest due to such third party owner pursuant to the terms of the applicable Guide or the terms of any Whole Loan Transfer, Private Securitization Transaction or Public Securitization Transaction. Such Interest Shortfall shall be the sole responsibility of the Owner.