Common use of Maintaining Eligibility Clause in Contracts

Maintaining Eligibility. ‌ This section contains the requirements to which a PFI or Servicer must adhere in order to maintain eligibility to participate in the MPF Program. It describes the financial statements, operational reports, and Lender Record information that a PFI or a Servicer must submit to the MPF Bank or MPF Provider, and it addresses the types of organizational changes and events that require notice to the MPF Bank or MPF Provider. Overview‌ To maintain eligibility to participate in the MPF Program, entities must be in compliance with the Guides and must continue to be in compliance with the terms of all eligibility requirements set forth in the Guides and its Applicable Agreements unless a written waiver was granted by its MPF Bank. Failure to do so may result in the MPF Bank or MPF Provider taking a range of possible actions up to and including terminating the Applicable Agreement. Government Loans‌ To maintain eligibility to sell and/or service Government Loans under the MPF Program, entities must be in compliance with the Guides and all eligibility requirements set forth in their Applicable Agreements, unless a written waiver was granted by the MPF Bank, in addition, to any other requirements established by the applicable Government Agency. Failure to do so may result in the MPF Bank or MPF Provider taking a range of possible actions up to and including terminating the Applicable Agreement. Annual Eligibility Certification (12/5/16)19‌ PFIs and Servicers must submit a complete and accurate Annual Eligibility Certification (AEC) certifying and affirming compliance with all of the provisions and requirements of the Applicable Agreements and the Guides as a condition of continuing eligibility. The AEC consists of the following documentation: • Annual Eligibility Certification form (Form OG1); • MPF Fidelity and Errors & Omissions Insurance Worksheet (Form OG2); • Any supporting documentation required to be submitted with Form OG1 or Form OG2; • Any action plan required to remediate non-compliance with any MPF Program Requirement; and • Any other documentation requested by the MPF Bank or MPF Provider. If a PFI or Servicer does not comply with an MPF Program Requirement at the time of submission of the AEC, it must respond “No” to the certification question on Form OG1 or Form OG2. It must provide a detailed explanation of the non-compliance and clarify the action plan that will be implemented to correct the non-compliance. The action plan must include the timeframe for the completion of the corrective action plan. A PFI or Servicer will be considered to meet the eligibility requirements and be in compliance with the MPF Program Requirements if an appropriate waiver of any MPF Program Requirements was granted by its MPF Bank or the MPF Provider, and the terms of that waiver are being met by the PFI or Servicer.