Common use of Reduction of Servicing Compensation in Connection with Prepayment Interest Shortfalls Clause in Contracts

Reduction of Servicing Compensation in Connection with Prepayment Interest Shortfalls. No later than the Servicer Remittance Date immediately preceding each Distribution Date, the Servicer shall remit to the Trustee an amount from its own funds equal to the Compensating Interest with respect to such Servicer Remittance Date; and in case of such remittance, the Servicer shall not be entitled to any recovery or reimbursement from the Depositor, the Trustee, the Trust Fund or the Certificateholders. With respect to any Mortgage Loan and Distribution Date, to the extent that the Prepayment Interest Shortfall exceeds Compensating Interest (such excess, a "Non-Supported Interest Shortfall"), such Non-Supported Interest Shortfall shall reduce the Current Interest with respect to each Class of Certificates, pro rata, based upon the amount of interest each such Class would otherwise be entitled to receive on such Distribution Date. Notwithstanding the foregoing, the Servicer shall not be obligated to pay Compensating Interest with respect to any Relief Act Shortfall.

Appears in 4 contracts

Samples: Pooling and Servicing Agreement (Wachovia Mortgage Loan Trust Series 2006-Amn1), Pooling and Servicing Agreement (Merrill Lynch Mortgage Asset Back Certs Ser 2004-Wmc2), Pooling and Servicing Agreement (Merrill Lynch Mortgage Investors Inc)

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Reduction of Servicing Compensation in Connection with Prepayment Interest Shortfalls. No later than the Servicer Remittance Date immediately preceding each Distribution Date, the Servicer shall remit to the Trustee Certificate Administrator an amount from its own funds equal to the Compensating Interest with respect to such Servicer Remittance Date; and in case of such remittance, the Servicer shall not be entitled to any recovery or reimbursement from the Depositor, the Certificate Administrator, the Trustee, the Trust Fund or the Certificateholders. With respect to any Mortgage Loan and Distribution Date, to the extent that the Prepayment Interest Shortfall exceeds Compensating Interest (such excess, a "Non-Supported Interest Shortfall"), such Non-Supported Interest Shortfall shall reduce the Current Interest with respect to each Class of Certificates, pro rata, based upon the amount of interest each such Class would otherwise be entitled to receive on such Distribution Date. Notwithstanding the foregoing, the Servicer shall not be obligated to pay Compensating Interest with respect to any Relief Act Shortfall.

Appears in 1 contract

Samples: Pooling and Servicing Agreement (Wachovia Mortgage Loan Trust, Series 2005-Wmc1)

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