Common use of Premium Rebate Clause in Contracts

Premium Rebate. In the event that a premium is paid by the Buyer to the Seller on a Loan and such Loan is prepaid by the Borrower, whether voluntarily or involuntarily following acceleration after default, within twelve (12) months of the Settlement Date, other than by a refinancing by the Buyer or any of its subsidiaries or affiliates or a refinancing by the Seller which is purchased by the Buyer, the Seller shall, upon demand by the Buyer, refund to the Buyer, in the appropriate percentage specified below, the premium paid by the Buyer to the Seller. In the event such Loan is prepaid within thirty (30) days of the Settlement Date of such Loan, the refund due Buyer from Seller will equal one hundred (100%) percent of the premium paid to Seller by Buyer for such Loan. In the event such Loan is prepaid later than twelve (12) months from the Settlement Date of such Loan, no refund shall be due. The amount of the premium to be refunded shall be determined as follows: Day: 31-60 91.67% 61-90 83.33% 91-120 75.00% 121-150 66.67% 151-180 58.33% 181-210 50.00% 211-240 41.67% 241-270 33.33% 271-300 25.00% 301-330 16.67% 331-365 8.33% V. REPRESENTATIONS AND WARRANTIES OF THE SELLER