Servicer Trigger Event Sample Clauses
A Servicer Trigger Event clause defines specific conditions or events that, if they occur, signal a potential issue with the servicer's performance or financial standing. These events might include the servicer's failure to meet certain financial covenants, breaches of contract, insolvency, or other operational failures. When a trigger event occurs, it typically allows the transaction parties to take protective actions, such as replacing the servicer or increasing oversight. The core function of this clause is to provide an early warning system and a mechanism for mitigating risk in structured finance or servicing arrangements.
Servicer Trigger Event. A "Servicer Trigger Event," shall be deemed to have occurred on any Distribution Date where the aggregate amount of cumulative Realized Losses incurred since the Cut-off Date through the last day of the related Accrual Period divided by the Pool Balance as of the Cut-off Date exceeds the applicable percentages set forth below with respect to such Distribution Date: DISTRIBUTION DATE OCCURRING IN PERCENTAGE ------------------------------ ---------- ___________ through __________ ___% ___________ through __________ ___% ___________ through __________ ___% ___________ and thereafter ___% Upon discovery by the Securities Administrator that a Servicer Trigger Event has occurred, the Securities Administrator shall promptly (and in any event within 5 Business Days of discovery) give written notice thereof to the Certificateholders. If a Servicer Trigger Event shall occur, then the Holders of Certificates evidencing not less than 51% of the Voting Rights evidenced by the Certificates (with the written consent of the NIMs Insurer, except after a NIMs Insurer Default), may, by notice in writing to the Servicer (with a copy to each Rating Agency), terminate all of the rights and obligations of the Servicer under this Agreement and in and to the Mortgage Loans and the proceeds thereof, other than its rights as a Certificateholder hereunder. On or after the receipt by the Servicer of such written notice, all authority and power of the Servicer hereunder, subject to and in accordance with Section 6.04 hereof, whether with respect to the Mortgage Loans or otherwise, shall pass to and be vested in the Master Servicer as successor servicer. The Master Servicer is hereby authorized and empowered as successor servicer to execute and deliver, on behalf of the Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of such notice of termination, whether to complete the transfer and endorsement or assignment of the Mortgage Loans and related documents, or otherwise. Unless expressly provided in such written notice, no such termination shall affect any obligation of the Servicer to pay amounts owed pursuant to Article VIII. The Servicer agrees to cooperate with the Master Servicer as successor servicer in effecting the termination of the Servicer's responsibilities and rights hereunder, including, without limitation, the transfer to the Master Service...