Common use of Payments to Foreclosed and Referred Borrowers Clause in Contracts

Payments to Foreclosed and Referred Borrowers. In accordance with written instructions from the Executive Committee, established in Paragraph 8, and for the purposes set forth in “Exhibit B”, which is attached and incorporated herein, and as also provided for in Exhibit B of the Consent Judgment, PHH shall transfer to the Settlement Administrator appointed under Exhibit B thirty-one million, four hundred and fifty-six thousand, two hundred and ten dollars ($31,456,210) (the “Borrower Payment Amount”) to enable the Settlement Administrator to provide cash payments to (a) borrowers whose loans were serviced by PHH at the time the foreclosure was completed and whose homes were sold or taken in a foreclosure between and including January 1, 2009, and December 31, 2012 or (b) all other borrowers whose loans were serviced by PHH and were referred to foreclosure during that same time period and not accounted for in (a) above; who submit claims allegedly arising from the Covered Conduct (as that term is defined in Exhibit C attached to the Consent Judgement); and who otherwise meet criteria set forth by the Executive Committee; and to pay the reasonable costs and expenses of a Settlement Administrator, including taxes and fees for tax counsel, if any. PHH shall also pay or cause to be paid any additional amounts necessary to pay claims, if any, of borrowers whose data is provided to the Settlement Administrator by PHH after PHH warrants that the data is complete and accurate pursuant to Paragraph 3 of Exhibit B. The Borrower Payment Amount and any other funds provided to the Settlement Administrator for these purposes shall be administered in accordance with the terms set forth in Exhibit B. PHH shall pay the Borrower Payment Amount by electronic funds transfer, pursuant to written instructions to be provided by the Executive Committee into an account established in accordance with this Paragraph 6, within seven (7) days of receiving notice that the account has been established or within seven (7) days of the Effective Date of this Agreement, whichever is later. After PHH have made the required payments, PHH shall no longer have any property right, title, interest or other legal claim in any funds. The account established by this Paragraph 6 is intended to be a Qualified Settlement Fund within the meaning of Treasury Regulation Section 1.468B-1 of the U.S. Internal Revenue Code of 1986, as amended.