Common use of Obligation to Compensate Clause in Contracts

Obligation to Compensate. ‌ The MPF Bank’s allowance of deductibles may not be deemed as a waiver of any rights it may possess to full compensation for any loss sustained by the MPF Bank and does not relieve the PFI or Servicer of the duty to reimburse the MPF Bank in full for any loss sustained by the MPF Bank not recovered from the proceeds of claims against the fidelity or E&O insurance. Reporting Events (3/28/17)36‌ PFIs or Servicers must notify the MPF Bank and MPF Provider, as applicable, within ten (10) Business Days of the occurrence of a single fidelity bond or E&O policy loss that exceeds $100,000, even when no claim will be filed or when the MPF Xxxxx’ interest will not be affected. PFIs or Servicers must promptly notify the MPF Bank and MPF Provider, as applicable, of all claims made against either the fidelity bond policy or E&O policy. In addition, the PFI or Servicer must notify the MPF Bank and MPF Provider, as applicable, within ten (10) Business Days of the receipt of a notice from the insurer regarding the intended cancellation, reduction, nonrenewal, or restrictive modification of the PFI’s or Servicer’s fidelity bond or E&O policy, and provide the MPF Bank a copy of the insurer’s notice, describe in detail the reason for the insurer’s action if it is not stated in the notice, and explain the efforts it has made to obtain replacement coverage or to otherwise satisfy the insurance requirements. The PFI or Servicer must promptly advise the MPF Bank or MPF Provider, as applicable, of all cases of theft, embezzlement, or fraud in its organization regardless if no loss has been incurred, and no MPF Bank funds were involved. The PFI or Servicer’s report should indicate the total amount of any loss regardless of whether a claim was filed with an insurer.