Common use of Permitted Withdrawals From Custodial Account Clause in Contracts

Permitted Withdrawals From Custodial Account. Subject to Section 3.01, the Servicer shall be entitled to withdraw funds from the Custodial Account for the following purposes: to make payments to the Owner in the amounts and in the manner provided Section 3.01; to pay to itself the Servicing Fee (to the extent the Servicer has not retained the Servicing Fee); to reimburse itself for Monthly Advances of the Servicer’s funds made pursuant to Section 3.04, the Servicer’s right to reimburse itself pursuant to this subclause (iii) being limited to amounts received on the related Mortgage Loan (including without limitation, late recoveries of payments from the Mortgagor, Liquidation Proceeds, Condemnation Proceeds and Insurance Proceeds with respect to such Mortgage Loan to the extent collected) which represent late payments of principal and/or interest respecting which any such Monthly Advance was made; it being understood that, in the case of any such reimbursement, the Servicer’s right thereto shall be prior to the rights of the Owner; to reimburse itself for unreimbursed Servicing Advances (except to the extent reimbursed pursuant to Section 2.07), any accrued but unpaid Servicing Fees and for unreimbursed advances of Servicer funds made pursuant to Section 2.15, the Servicer’s right to reimburse itself pursuant to this subclause (iv) with respect to any Mortgage Loan being limited to related Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds and such other amounts as may be collected by the Servicer from the Mortgagor or otherwise relating to the Mortgage Loan, it being understood that, in the case of any such reimbursement, the Servicer’s right thereto shall be prior to the rights of the Owner; following the liquidation of a Mortgage Loan, to reimburse itself from amounts unrelated to the Mortgage Loan for any unpaid Servicing Fees to the extent not recoverable from Liquidation Proceeds, Insurance Proceeds or other amounts received with respect to the related Mortgage Loan under Section 2.05(iii); to reimburse itself for any unreimbursed Nonrecoverable Advances made by the Servicer in accordance with this Agreement; to invest funds in Eligible Investments in accordance with Section 2.09; to withdraw funds deposited in error; to pay itself any interest earned on funds deposited in the Custodial Account and to withdraw any Prepayment Interest Excesses (but only to the extent not required to offset Prepayment Interest Shortfalls and only to the extent such amounts are actually received by the Servicer); to clear and terminate the Custodial Account upon the termination of this Agreement; and to transfer amounts in the Custodial Account relating to the transfer of servicing of applicable Mortgage Loans to a subservicer or successor servicer.

Permitted Withdrawals From Custodial Account. Subject The Company shall, from time to Section 3.01time, the Servicer shall be entitled to withdraw funds from the Custodial Account for the following purposes: to make payments to the Owner Purchaser in the amounts and in the manner provided for in Section 3.01; to pay to itself the Servicing Fee (to the extent the Servicer has not retained the Servicing Fee)5.01; to reimburse itself for Monthly Advances of the Servicer’s Company's funds made pursuant to Section 3.045.03, the Servicer’s Company's right to reimburse itself pursuant to this subclause (iiiii) being limited to amounts received on the related Mortgage Loan (including without limitation, late recoveries of payments from the Mortgagor, Liquidation Proceeds, Condemnation Proceeds and Insurance Proceeds with respect to such Mortgage Loan to the extent collected) which represent late payments of principal and/or interest respecting which any such Monthly Advance advance was made; , it being understood that, in the case of any such reimbursement, the Servicer’s Company's right thereto shall be prior to the rights of Purchaser, except that, where the OwnerCompany is required to repurchase a Mortgage Loan pursuant to Section 3.03, 3.05, 3.07 or 6.02, the Company's right to such reimbursement shall be subsequent to the payment to the Purchaser of the Repurchase Price pursuant to such sections and all other amounts required to be paid to the Purchaser with respect to such Mortgage Loan; to reimburse itself for unreimbursed Servicing Advances (except to the extent reimbursed pursuant to Section 2.07)Advances, and for any accrued but unpaid Servicing Fees and for unreimbursed advances of Servicer funds made pursuant to Section 2.15Fees, the Servicer’s Company's right to reimburse itself pursuant to this subclause (iviii) with respect to any Mortgage Loan being limited to related Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds and such other amounts as may be collected by the Servicer Company from the Mortgagor or otherwise relating to the Mortgage Loan, it being understood that, in the case of any such reimbursement, the Servicer’s Company's right thereto shall be prior to the rights of Purchaser except where the Owner; following the liquidation of Company is required to repurchase a Mortgage LoanLoan pursuant to Section 3.03, 3.05, 3.07 or 6.02, in which case the Company's right to reimburse itself from amounts unrelated such reimbursement shall be subsequent to the Mortgage Loan for any unpaid Servicing Fees payment to the extent not recoverable from Liquidation Proceeds, Insurance Proceeds or Purchasers of the Repurchase Price pursuant to such sections and all other amounts received required to be paid to the Purchasers with respect to the related such Mortgage Loan under Section 2.05(iii); to reimburse itself for any unreimbursed Nonrecoverable Advances made by the Servicer in accordance with this Agreement; to invest funds in Eligible Investments in accordance with Section 2.09; to withdraw funds deposited in errorLoan; to pay itself any interest earned on funds deposited in the Custodial Account; to reimburse itself for expenses incurred and reimbursable to it pursuant to Section 9.01; to pay any amount required to be paid pursuant to Section 4.16 related to any REO Property, it being understood that in the case of any such expenditure or withdrawal related to a particular REO Property, the amount of such expenditure or withdrawal from the Custodial Account and shall be limited to withdraw any Prepayment Interest Excesses (but only amounts on deposit in the Custodial Account with respect to the extent not required to offset Prepayment Interest Shortfalls and only to the extent such amounts are actually received by the Servicer)related REO Property; to clear and terminate the Custodial Account upon the termination of this Agreement; and to transfer amounts withdraw funds deposited in error. In the event that the Custodial Account relating is interest bearing, on each Remittance Date, the Company shall withdraw all funds from the Custodial Account except for those amounts which, pursuant to Section 5.01, the Company is not obligated to remit on such Remittance Date. The Company may use such withdrawn funds only for the purposes described in this Section 4.05. Establishment of and Deposits to Escrow Account. The Company shall segregate and hold all funds collected and received pursuant to a Mortgage Loan constituting Escrow Payments separate and apart from any of its own funds and general assets and shall establish and maintain one or more Escrow Accounts, in the form of time deposit or demand accounts, titled, "Countrywide Home Loans, Inc., in trust for the EMC Mortgage Corporation, as purchaser of Residential Adjustable Rate Mortgage Loans and various Mortgagors". The Escrow Accounts shall be established with a Qualified Depository, in a manner which shall provide maximum available insurance thereunder. Funds deposited in the Escrow Account may be drawn on by the Company in accordance with Section 4.07. The creation of any Escrow Account shall be evidenced by a certification in the form of Exhibit E-1 hereto, in the case of an account established with the Company, or by a letter agreement in the form of Exhibit E-2 hereto, in the case of an account held by a depository other than the Company. A copy of such certification shall be furnished to the transfer Purchaser and, upon request, to any subsequent Purchaser. The Company shall deposit in the Escrow Account or Accounts within two Business Days of servicing receipt, and retain therein: all Escrow Payments collected on account of applicable the Mortgage Loans Loans, for the purpose of effecting timely payment of any such items as required under the terms of this Agreement; and all amounts representing Insurance Proceeds or Condemnation Proceeds which are to a subservicer be applied to the restoration or successor servicerrepair of any Mortgaged Property. The Company shall make withdrawals from the Escrow Account only to effect such payments as are required under this Agreement, as set forth in Section 4.07. The Company shall be entitled to retain any interest paid on funds deposited in the Escrow Account by the depository institution, other than interest on escrowed funds required by law to be paid to the Mortgagor. To the extent required by law, the Company shall pay interest on escrowed funds to the Mortgagor notwithstanding that the Escrow Account may be non-interest bearing or that interest paid thereon is insufficient for such purposes.

Permitted Withdrawals From Custodial Account. Subject The Servicer shall, from time to Section 3.01time, the Servicer shall be entitled to withdraw funds from the Custodial Account for the following purposes: to make payments to the Owner in the amounts and in the manner provided for in Section 3.014.01; in the event the Servicer has elected not to retain the Servicing Fee out of any Mortgagor payments on account of interest or other recovery of interest with respect to a particular Mortgage Loan (including late collections of interest on such Mortgage Loan, or interest portions of Insurance Proceeds or Liquidation Proceeds) prior to the deposit of such Mortgagor payment or recovery in the Custodial Account, to pay to itself the related Servicing Fee (from all such Mortgagor payments on account of interest or other such recovery for interest with respect to the extent the Servicer has not retained the Servicing Fee)that Mortgage Loan; to reimburse itself for Monthly Advances of the Servicer’s funds made pursuant to Section 3.04unreimbursed Servicing Advances, the Servicer’s 's right to reimburse itself pursuant to this subclause (iii) being limited to amounts received on the related Mortgage Loan (including without limitation, late recoveries of payments from the Mortgagor, Liquidation Proceeds, Condemnation Proceeds and Insurance Proceeds with respect to such Mortgage Loan to the extent collected) which represent late payments of principal and/or interest respecting which any such Monthly Advance was made; it being understood that, in the case of any such reimbursement, the Servicer’s right thereto shall be prior to the rights of the Owner; to reimburse itself for unreimbursed Servicing Advances (except to the extent reimbursed pursuant to Section 2.07), any accrued but unpaid Servicing Fees and for unreimbursed advances of Servicer funds made pursuant to Section 2.15, the Servicer’s right to reimburse itself pursuant to this subclause (iv) with respect to any Mortgage Loan being limited to related Liquidation Proceeds, Condemnation Insurance Proceeds, Insurance REO Disposition Proceeds and other amounts received in respect of the related REO Property, and such other amounts as may be collected by the Servicer from the Mortgagor or otherwise relating to the Mortgage LoanLoan (provided that in the event the Servicer is unable to reimburse itself from the related Mortgage Loan it may, by written notice to the Owner, reimburse itself from amounts on deposit in the Custodial Account), it being understood that, in the case of any such reimbursement, the Servicer’s 's right thereto shall be prior to the rights of the Owner; following to pay itself interest on funds deposited in the liquidation of a Mortgage Loan, to reimburse itself from amounts unrelated to the Mortgage Loan for any unpaid Servicing Fees to the extent not recoverable from Liquidation Proceeds, Insurance Proceeds or other amounts received with respect to the related Mortgage Loan under Section 2.05(iii)Custodial Account; to reimburse itself for any unreimbursed Nonrecoverable Advances made by the Servicer transfer funds to another Qualified Depository in accordance with this AgreementSection 3.10; to invest funds in Eligible Investments in accordance with Section 2.093.10; to reimburse itself for any Nonrecoverable Advances or out-of-pocket expenses incurred by the Servicer pursuant to Section 2.03, 3.09(c) or 10.02; to withdraw funds deposited in error; to pay itself any interest earned on funds deposited in the Custodial Account and to withdraw any Prepayment Interest Excesses (but only to the extent not required to offset Prepayment Interest Shortfalls and only to the extent such amounts are actually received by the Servicer); to clear and terminate the Custodial Account upon the termination of this Agreement; and to transfer amounts in the Custodial Account relating to the transfer of servicing of applicable Mortgage Loans to a subservicer or successor servicer.