Common use of Repurchase for servicing Clause in Contracts

Repurchase for servicing. If the Lender, Borrower, and Holder are un- able to agree to restructuring of loan repayment, Interest rate, or loan terms to resolve any loan problem or resolve the Default and repurchase of the guar- anteed portion of the loan is necessary to adequately service the loan, the Holder must sell the guaranteed por- tion of the loan to the Lender for an amount equal to the unpaid principal and Interest on such portion less the Lender’s servicing fee. The Lender must not repurchase from the Holder for arbitrage or other purposes to fur- ther its own financial gain. Any repur- chase must only be made after the Lender obtains the Agency’s written approval. If the Lender does not repur- chase the guaranteed portion from the Holder, the Agency may, at its option, purchase such guaranteed portion for servicing purposes.