Common use of Substitution Procedure Clause in Contracts

Substitution Procedure. In the event Seller elects to substitute for a Mortgage Loan, Seller shall send to Purchaser a Substitution Notice which (i) identifies the Substitute Mortgage Loans being substituted and (ii) calculates the Substitution Adjustment. In the event the Substitution Adjustment is a negative number, Seller shall pay such Substitution Adjustment to Purchaser if such substitution is made after the Closing Date or shall reduce the Total Purchase Price correspondingly if such substitution is made prior to the Closing Date. In the event the Substitution Adjustment is a positive number, Purchaser shall pay such Substitution Adjustment to Seller if such substitution is made after the Closing Date or shall increase the Total Purchase Price correspondingly if such substitution is made prior to the Closing Date. Seller shall deliver to Purchaser all items required under Section 4.2 with respect to such Substitute Mortgage Loan and Purchaser shall convey all of its right, title and interest in and to the Deleted Mortgage Loan to Seller and shall make all deliveries and take all other actions on the same terms and conditions under which Seller had conveyed such Mortgage Loan to Purchaser. If Purchaser receives any amounts on account of such Mortgage Loan after its conveyance to Seller that are payable to Seller pursuant to the terms of this Agreement, it shall promptly forward such sums to Seller. If Seller substitutes a Substitute Mortgage Loan for a Defective Mortgage Loan, the deletion date for the Defective Mortgage Loan and the substitution date of the Substitute Mortgage Loan (which shall be the same date) shall be specified in such Substitution Notice and shall be a date occurring on or before the date three Business Days following the date of the relevant Substitution Notice.

Substitution Procedure. In the event that Seller elects to substitute for a Mortgage Loan that is a Defective Mortgage Loan, Seller shall send to Purchaser a Substitution Notice which that (i) identifies the Mortgage Loan that is proposed to be deleted from the Mortgage Loans to be sold hereunder and the Substitute Mortgage Loans being proposed to be substituted for such Mortgage Loan and (ii) calculates the Substitution Adjustment. In If the proposed Substitute Mortgage Loan is accepted by Purchaser, (i) in the event the Substitution Adjustment is a negative number, Seller shall pay such Substitution Adjustment to Purchaser if such substitution is made after the Closing Date or shall reduce the Total Purchase Price correspondingly if such substitution is made prior to the Closing Date. In and (ii) in the event the Substitution Adjustment is a positive number, Purchaser shall pay such Substitution Adjustment to Seller if such substitution is made after the Closing Date or shall increase the Total Purchase Price correspondingly if such substitution is made prior to the Closing Datecorrespondingly. Seller shall deliver to Purchaser all items required under Section 4.2 with respect to such Substitute Mortgage Loan and Purchaser shall convey all of its right, title and interest in and to the Deleted Mortgage Loan to Seller and shall make all deliveries and take all other actions on the same terms and conditions under which Seller had conveyed such Mortgage Loan to Purchaser. If Purchaser receives any amounts on account of such Mortgage Loan after its conveyance to Seller that are payable to Seller pursuant to the terms of this Agreement, it shall promptly forward such sums to Seller. If Seller substitutes a Substitute Mortgage Loan for a Defective Mortgage Loan, the deletion date for the Defective Mortgage Loan and the substitution date of the Substitute Mortgage Loan (which shall be the same date) shall be specified in such Substitution Notice and shall be a date occurring on or before the date three Business Days following the date of the relevant Substitution Notice.