Common use of OF THE 1934 ACT Clause in Contracts

OF THE 1934 ACT. If Servicer is a registered broker-dealer, Servicer represents and warrants that it shall act in accordance with all applicable federal and state laws and the Rules of Fair Practice of the NASD, including Section 26 of Article III of such Rules. Servicer shall notify Distributor immediately (1) in the event Servicer ceases to be a member in good standing of the NASD or Servicer is found to have violated any applicable federal or state law, rule or regulation arising out of its activities as a broker-dealer or in connection with this Agreement, or (2) upon the occurrence of any other event which may otherwise materially affect its ability to act in accordance with this Agreement.