Common use of Satisfactions Clause in Contracts

Satisfactions. Upon the payment in full of any Mortgage Loan, or the receipt by the Servicer of a notification that payment in full will be escrowed in a manner customary for such purposes, the Servicer will immediately notify the Custodian by a certification of a Servicing Officer, which certification shall include a statement to the effect that all amounts received or to be received in connection with such payment which are required to be deposited in the Collection Account pursuant to Section 4.04 have been or will be so deposited and shall request delivery to it of the portion of the Mortgage File held by the Custodian. Upon receipt of such certification and request, the Custodian shall promptly release the related mortgage documents to the Servicer and the Servicer shall promptly prepare and process any satisfaction or release. In the event the Servicer satisfies or releases a Mortgage without having obtained payment in full of the indebtedness secured by the Mortgage or should it otherwise prejudice any right the Owner may have under the mortgage instruments, the Primary Insurance Policy, if any, or the Pool Policy, if applicable, the Servicer, upon written demand, shall remit to the Owner the then outstanding principal balance of the related Mortgage Loan plus accrued and unpaid interest at the Mortgage Loan Remittance Rate through the last day of the month in which such satisfaction or release occurs by deposit thereof in the Collection Account. The Servicer shall maintain the Fidelity Bond insuring the Servicer against any loss it may sustain with respect to any Mortgage Loan not satisfied in accordance with the procedures set forth herein. The Servicer shall make reasonable efforts to satisfy mortgages and release their liens in a timely manner, including the preparation of any required release or satisfaction document. Once the required release or satisfaction documents are executed and the Note is canceled, The Servicer shall promptly send the canceled documents to the Borrower if state law requires such action or the Borrower specifically requests the return of the documents. In other instances, the Servicer may either return the documents to the Borrower or retain them (as long as they are not destroyed until after the retention period required by applicable law). The Servicer should also take any other steps required to release the lien and assure that no penalties are incurred because the actions were not performed in a timely manner. The Servicer may not pass on to the Owner or the Borrower any penalty fee that it has to pay because it failed to process the release and satisfaction documents within the required time frame. The Servicer shall generally follow the procedures set forth in the ▇▇▇▇▇▇ Mae Guidelines regarding satisfactions of mortgages.