Common use of Nonrecoverable Advances Clause in Contracts

Nonrecoverable Advances. Any advance previously made by a Servicer pursuant to its Selling and Servicing Contract with respect to a Mortgage Loan or by the Master Servicer that the Master Servicer shall determine in its good faith judgment not to be ultimately recoverable from Insurance Proceeds or Liquidation Proceeds or otherwise with respect to such Mortgage Loan or recoverable as late Monthly Payments with respect to such Mortgage Loan shall be a Nonrecoverable Advance. The determination by the Master Servicer that it or the applicable Servicer has made a Nonrecoverable Advance or that any advance would constitute a Nonrecoverable Advance, shall be evidenced by an Officer's Certificate of the Master Servicer delivered to the Trustee on the Determination Date and detailing the reasons for such determination. Notwithstanding any other provision of this Agreement, any insurance policy relating to the Mortgage Loans, or any other agreement relating to the Mortgage Loans to which the Company or the Master Servicer is a party, (a) the Master Servicer and each Servicer shall not be obligated to, and shall not, make any advance that, after reasonable inquiry and in its sole discretion, the Master Servicer or such Servicer shall determine would be a Nonrecoverable Advance, and (b) the Master Servicer and each Servicer shall be entitled to reimbursement for any advance as provided in Section 3.05(a)(i), (ii) and (iv) of this Agreement. Section 4.04. Distributions to Holders of REMIC II Regular Interests and Class R-2 Certificateholders. On each Distribution Date, the Trustee (or any duly appointed paying agent) (i) shall be deemed to have distributed from the Certificate Account (a) the REMIC II Distribution Amount to the Holders of the REMIC II Regular Interests and (b) the Class II-A-4 Rounding Amount, if any, to the Class II-A-4-L Regular Interest, and to have deposited such amounts for their benefit into the Certificate Account and (ii) from the Certificate Account shall distribute to the Class R-2 Certificateholders the amounts to be distributed to the Class R-2 Certificateholders pursuant to the definition of "REMIC II Distribution Amount" for such Distribution Date, all in accordance with written statements received from the Master Servicer pursuant to Section 4.02(b), by wire transfer in immediately available funds for the account of each such Holder and the Class R-2 Certificateholder, or by any other means of payment acceptable to each such Holder and the Class R-2 Certificateholder of record on the immediately preceding Record Date (other than as provided in Section 9.01 respecting the final distribution), as specified by each such Holder and at the address of such Holder appearing in the Certificate Register. Notwithstanding any other provision of this Agreement, no actual distributions pursuant to clause (i) of this Section 4.04 shall be made on account of the deemed distributions described in this paragraph except in the event of a liquidation of REMIC III and not REMIC II. Section 4.05.

Nonrecoverable Advances. Any advance previously made by a Servicer pursuant to its Selling and Servicing Contract with respect to a Mortgage Loan or by the Master Servicer that the Master Servicer shall determine in its good faith judgment not to be ultimately recoverable from Insurance Proceeds or Liquidation Proceeds or otherwise with respect to such Mortgage Loan or recoverable as late Monthly Payments with respect to such Mortgage Loan shall be a Nonrecoverable Advance. The determination by the Master Servicer that it or the applicable Servicer has made a Nonrecoverable Advance or that any advance would constitute a Nonrecoverable Advance, shall be evidenced by an Officer's Certificate of the Master Servicer delivered to the Trustee on the Determination Date and detailing the reasons for such determination. Notwithstanding any other provision of this Agreement, any insurance policy relating to the Mortgage Loans, or any other agreement relating to the Mortgage Loans to which the Company or the Master Servicer is a party, (a) the Master Servicer and each Servicer shall not be obligated to, and shall not, make any advance that, after reasonable inquiry and in its sole discretion, the Master Servicer or such Servicer shall determine would be a Nonrecoverable Advance, and (b) the Master Servicer and each Servicer shall be entitled to reimbursement for any advance as provided in Section 3.05(a)(i), (ii) and (iv) of this Agreement. Section 4.04. Distributions to Holders of REMIC II Regular Interests and Class R-2 Certificateholders. On each Distribution Date, the Trustee (or any duly appointed paying agent) (i) shall be deemed to have distributed from the Certificate Account (a) the REMIC II Distribution Amount to the Holders of the REMIC II Regular Interests and (b) the Class II-A-4 applicable Rounding AmountAmounts, if any, to the Class II-A-4-L Regular Interestholders of the applicable Classes which constitute Corresponding Classes of Special Retail Certificates, and to have deposited such amounts for their benefit into the Certificate Account and (ii) from the Certificate Account shall distribute to the Class R-2 Certificateholders the amounts to be distributed to the Class R-2 Certificateholders pursuant to the definition of "REMIC II Distribution Amount" for such Distribution Date, all in accordance with written statements received from the Master Servicer pursuant to Section 4.02(b), by wire transfer in immediately available funds for the account of each such Holder and the Class R-2 Certificateholder, or by any other means of payment acceptable to each such Holder and the Class R-2 Certificateholder of record on the immediately preceding Record Date (other than as provided in Section 9.01 respecting the final distribution), as specified by each such Holder and at the address of such Holder appearing in the Certificate Register. Notwithstanding any other provision of this Agreement, no actual distributions pursuant to clause (i) of this Section 4.04 shall be made on account of the deemed distributions described in this paragraph except in the event of a liquidation of REMIC III and not REMIC II. Section 4.05.134

Nonrecoverable Advances. Any advance previously made conclusion that a Property Advance is (or, if made, would be) a Nonrecoverable Advance must be (i) documented by, in addition to the Officer's Certificate required by this Section 4.02, an appraisal conducted within the 12 months preceding any such determination by an independent appraiser, at the expense of the Owner, in accordance with MAI standards and methodologies and (ii) based upon the good faith business judgment of the Servicer, the Custodian or the Fiscal Agent, as applicable, that such Property Advance will not or, in the case of a Servicer pursuant proposed Property Advance, would not, be ultimately recoverable by the Servicer, the Custodian or the Fiscal Agent, as applicable, from the sum of late payments, reserve deposits, Insurance Proceeds, Condemnation Proceeds, Net Liquidation Proceeds and other collections on or in respect of the related Mortgage Loan (including without limitation all rent payments due under the related Lease (including, but not limited to, Basic Rent, excess rent and any additional rent) which exceed the Monthly Payment due on the Mortgage Loan, whether due to its Selling and Servicing Contract the existence of such differences at origination, increases in such rents or otherwise). To the extent that any Borrower is not obligated under the related Mortgage Loan Documents to pay or reimburse any portion of any Property Advances and/or interest thereon that are outstanding with respect to a the related Mortgage Loan as a result of (1) a modification or by the Master Servicer that the Master Servicer shall determine in its good faith judgment not to be ultimately recoverable from Insurance Proceeds or Liquidation Proceeds or otherwise with respect to work-out of such Mortgage Loan which forgives unreimbursed amounts for which the Servicer had previously advanced, or recoverable as late Monthly Payments with respect (2) the Property Advance Rate exceeding the sum of the related Mortgage Rate and Default Interest, and the Servicer determines that no other source of payment or reimbursement for such advances and/or interest is available to it, such Mortgage Loan Property Advances and/or interest thereon shall be a Nonrecoverable Advancedeemed to be nonrecoverable; PROVIDED, HOWEVER, that in connection with the foregoing the Servicer shall provide an Officer's Certificate as described in the succeeding paragraph. The determination by the Master Servicer Servicer, the Custodian or the Fiscal Agent, as applicable, that it or the applicable Servicer has made a Nonrecoverable Advance or that any advance proposed Property Advance, if made, would constitute a Nonrecoverable Advance, Advance shall be evidenced by an Officer's Certificate or a certificate of a Responsible Officer, as applicable, of the Master Servicer party making such determination delivered to the Trustee on Owner setting forth such determination and the Determination Date procedures and detailing considerations of the reasons for Servicer, the Custodian or the Fiscal Agent, as applicable, forming the basis of such determination (including a copy of the appraisal which was considered in making such determination). Notwithstanding any other provision of this Agreement, any insurance policy relating to the Mortgage Loans, or any other agreement relating to the Mortgage Loans to which the Company or the Master Servicer is a party, (a) the Master Servicer and each Servicer shall not be obligated to, and shall not, make any advance that, after reasonable inquiry and in its sole discretionabove, the Master Servicer or such Servicer shall determine would be a Nonrecoverable Advance, Custodian and (b) the Master Servicer and each Servicer Fiscal Agent shall be entitled to reimbursement for rely upon any advance as provided in Section 3.05(a)(i), (ii) and (iv) of this Agreement. Section 4.04. Distributions to Holders of REMIC II Regular Interests and Class R-2 Certificateholders. On each Distribution Date, the Trustee (or any duly appointed paying agent) (i) shall be deemed to have distributed from the Certificate Account (a) the REMIC II Distribution Amount certificate conforming to the Holders of the REMIC II Regular Interests and (b) the Class II-A-4 Rounding Amount, if any, to the Class II-A-4-L Regular Interest, and to have deposited such amounts for their benefit into the Certificate Account and (ii) from the Certificate Account shall distribute to the Class R-2 Certificateholders the amounts to be distributed to the Class R-2 Certificateholders pursuant to the definition of "REMIC II Distribution Amount" for such Distribution Date, all in accordance with written statements received from the Master Servicer pursuant to Section 4.02(b), by wire transfer in immediately available funds for the account of each such Holder and the Class R-2 Certificateholder, or by any other means of payment acceptable to each such Holder and the Class R-2 Certificateholder of record on the immediately preceding Record Date (other than as provided in Section 9.01 respecting the final distribution), as specified by each such Holder and at the address of such Holder appearing in the Certificate Register. Notwithstanding any other provision of this Agreement, no actual distributions pursuant to clause (i) requirements of this Section 4.04 shall be 4.02 delivered by the Servicer to the effect that any Property Advance previously made on account of the deemed distributions described in this paragraph except in the event of is a liquidation of REMIC III and not REMIC II. Section 4.05Nonrecoverable Advance or that any proposed Property Advance, if made, would constitute a Nonrecoverable Advance.

Nonrecoverable Advances. Any advance If the Master Servicer determines at any time that any Advance previously made by a Servicer pursuant to its Selling and Servicing Contract with respect to a Mortgage Loan it constitutes, or by the Master Servicer that the Master Servicer shall determine in its good faith judgment not to be ultimately recoverable from Insurance Proceeds or Liquidation Proceeds or otherwise with respect to such Mortgage Loan or recoverable as late Monthly Payments with respect to such Mortgage Loan shall be a Nonrecoverable any proposed Advance. The determination by the Master Servicer that it or the applicable Servicer has made a Nonrecoverable Advance or that any advance , if made, would constitute constitute, a Nonrecoverable Advance, such determination shall be evidenced by an Officer's Certificate of the Master Servicer a Servicing Officer delivered to the Trustee and the Depositor by the third Business Day following the next succeeding Determination Date, but in no event (in the case of a Monthly Advance) later than three Business Days preceding the Distribution Date on which such Advance would otherwise be paid to Holders of the Determination Date Certificates. Such Officer's Certificate shall set forth such determination of nonrecoverability and detailing the reasons for procedure and considerations of the Master Servicer forming the basis of such determination. Notwithstanding any other provision determination (which shall include, but not be limited to, an opinion of this Agreement, any insurance policy relating counsel with respect to the occurrence of an FHA Insurance Nonexistence Event (in the case of a Servicing Advance) and, with respect to any Mortgage LoansLoan, financial or non-financial information such as related income and expense statements, rent rolls, occupancy status, property inspections, Master Servicer inquiries, an appraisal performed by an MAI appraiser in accordance with MAI standards and methodologies (the cost of which appraisal, if done externally, to be recoverable as a Servicing Advance, subject to the limitations in Section 3.09) or notification of material environmental concern). The Master Servicer shall withdraw funds from the Custodial Account pursuant to and subject to the limitations in Section 3.09 to reimburse itself for any Nonrecoverable Advance it has made. If the Trustee determines at any time that any Monthly Advance previously made by it constitutes, or any other agreement relating proposed Monthly Advance, if made, would constitute, a Nonrecoverable Advance, such determination shall be evidenced by an Officer's Certificate of a Responsible Officer delivered to the Mortgage Loans Depositor no later than the Distribution Date on which such Monthly Advance would otherwise be paid to which Holders of the Company or Certificates. If the Trustee determines that a proposed Monthly Advance, if made, would constitute a Nonrecoverable Advance despite the fact that the Master Servicer is a partyhad not previously made any such determination, such Officer's Certificate shall set forth such determination of nonrecoverability and the procedure and consider- ations of the Trustee forming the basis of such determination (a) the Master Servicer and each Servicer which shall include, but not be obligated limited to, with respect to any Mortgage Loan, an MAI appraisal performed by a MAI appraiser in accordance with MAI standards and shall notmethodologies (the cost of which appraisal, make any advance thatif done externally, after reasonable inquiry and to be recoverable as a Servicing Advance, subject to the limitations in its sole discretionSection 3.09). The Trustee, the Master Servicer in determining whether or such Servicer shall determine not a proposed Monthly Advance would be a Nonrecoverable Advance, and (b) shall be subject to the standards for such a determination which are applicable to the Master Servicer hereunder. Notwithstanding the foregoing, and each Servicer unless the circumstances under which such a determination was made have materially changed or the basis for such a determination has been proven to be erroneous, the Trustee shall be entitled to reimbursement for conclusively rely upon any advance as provided in Section 3.05(a)(i), (ii) and (iv) of this Agreement. Section 4.04. Distributions to Holders of REMIC II Regular Interests and Class R-2 Certificateholders. On each Distribution Date, the Trustee (or any duly appointed paying agent) (i) shall be deemed to have distributed from the Certificate Account (a) the REMIC II Distribution Amount to the Holders of the REMIC II Regular Interests and (b) the Class II-A-4 Rounding Amount, if any, to the Class II-A-4-L Regular Interest, and to have deposited such amounts for their benefit into the Certificate Account and (ii) from the Certificate Account shall distribute to the Class R-2 Certificateholders the amounts to be distributed to the Class R-2 Certificateholders pursuant to the definition of "REMIC II Distribution Amount" for such Distribution Date, all in accordance with written statements received from determination by the Master Servicer pursuant that an Advance previously made or proposed to Section 4.02(b), by wire transfer in immediately available funds for the account of each such Holder and the Class R-2 Certificateholder, or by any other means of payment acceptable to each such Holder and the Class R-2 Certificateholder of record on the immediately preceding Record Date (other than as provided in Section 9.01 respecting the final distribution), as specified by each such Holder and at the address of such Holder appearing in the Certificate Register. Notwithstanding any other provision of this Agreement, no actual distributions pursuant to clause (i) of this Section 4.04 shall be made on account of the deemed distributions described in this paragraph except in the event of constitutes a liquidation of REMIC III and not REMIC II. Section 4.05Nonrecoverable Advance.