Common use of Waivers, Modifications and Extensions; Subordination Clause in Contracts

Waivers, Modifications and Extensions; Subordination. The Servicer shall make reasonably diligent efforts to collect all payments called for under the terms and provisions of the Loans and shall, to the extent such procedures shall be consistent with this Agreement, follow the Servicing Standard. The Servicer may in its discretion waive or permit to be waived any penalty interest or any other fee or charge which the Servicer would be entitled to retain hereunder as servicing compensation and extend the Due Date on a Promissory Note for a period (with respect to each payment as to which the Due Date is extended) not greater than 90 days after the initially scheduled due date for such payment. Notwithstanding anything in this Agreement to the contrary, the Servicer shall not permit any additional extension or modification with respect to any Loan other than that permitted by the immediately preceding sentence unless the Loan is a Defaulted Loan. The Servicer may in its discretion enter in subordination agreements with respect to any Loan, provided that the Servicer determines, consistent with this Agreement and the Servicing Standard that the entering into of such subordination agreement is in the best interests of the Trust; provided further, that the Servicer shall not enter into such a subordination agreement with respect to any Mortgage Loan if, after giving effect to such agreement, such Mortgage Loan would fail to constitute a real estate asset, as described in Section 856 of the Code. The Servicer shall provide written notice to the Initial Noteholder prior to entering into any agreement to modify the terms of any Loan after the Transfer Date with respect thereto, including, without limitation, any cross-default or cross-collateralization provisions with respect thereto.

Waivers, Modifications and Extensions; Subordination. The In accordance with the servicing standard in Section 4.01(a), the Servicer shall make reasonably diligent efforts to collect all payments called for under the terms and provisions of the Loans and shall, to the extent such procedures shall be consistent with this Agreement, follow the Servicing StandardHome Loans. The Servicer may in its discretion may waive or permit to be waived any penalty interest or any other fee or charge which the Servicer would be entitled to retain hereunder as servicing compensation and extend the Due Date on a Promissory Note Debt Instrument for a period (with respect to each payment as to which the Due Date is extended) not greater than 90 days after the initially scheduled due date Due Date for such payment. Notwithstanding anything in this Agreement to the contrary, the Servicer shall not permit any additional extension or modification with respect to any Home Loan other than that permitted by the immediately preceding sentence sentence, unless the Home Loan is a Defaulted Home Loan. (See Section 4.10 hereof for a description of the recovery procedures for Defaulted Home Loans.) The Servicer may in its discretion enter in subordination agreements with respect to any Home Loan, provided that the Servicer determines, consistent with this Agreement and the Accepted Servicing Standard Procedures, that the entering into of such subordination agreement is in the best interests of the Grantor Trust; provided further, that the . The Servicer shall not may grant a waiver or enter into such a subordination agreement with respect to any Mortgage Loan if, after giving effect to such agreement, such Mortgage Loan would fail to constitute a real estate asset, as described in Section 856 the refinancing of the Codeindebtedness secured by a Superior Lien on the related Mortgaged Property, provided that the Obligor is in a better financial or cash flow position as a result of such refinancing, which may include a reduction in the Obligor's scheduled monthly payment on the indebtedness secured by such Superior Lien or the conversion of an adjustable rate loan into a new fixed rate loan. The Servicer shall provide written notice notify the Grantor Trustee and the Indenture Trustee of any modification, waiver or amendment of any provision of any Home Loan and the date thereof, and shall deliver to the Initial Noteholder prior Custodian for deposit in the related Grantor Trustee's Home Loan File, a true and correct copy or, if available, an original of the agreement relating to entering into any agreement to modify such modification, waiver or amendment promptly following the terms of any Loan after the Transfer Date with respect thereto, including, without limitation, any cross-default or cross-collateralization provisions with respect theretoexecution thereof.