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Participation Agreement

 

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Title:

Participation Agreement

Entities:

Harbourton Financial Corp; Harbourton Financial Corp; Lowenstein Sandler PC

Date:

2001

Size:

Preview shows 6KB of 174KB total

Price:

$50

ID:

#1569866

 

 

► Compensation ► Participation Agreements
► Financial ► Consumer Financial Services
► Services ► Legal

 

 

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4

0004.txt
PARTICIPATION AGREEMENT WITH RFC



PARTICIPATION AGREEMENT

Dated as of February 23, 1996



By and Between



HARBOURTON RESIDENTIAL CAPITAL CO., L.P.
a Delaware limited partnership -- Lender



and



RESIDENTIAL FUNDING CORPORATION,
a Delaware corporation -- Participant





1








TABLE OF CONTENTS


Page

R E C I T A L S........................ 1
ARTICLE I .....DEFINITIONS ............. 2
Section 1.1 ...Defined Terms ........... 2
Section 1.2 ...Other Provisions ........ 12

ARTICLE II ....PARTICIPATION INTERESTS . 13
Section 2.1 ...Offers and Right to Purchase Participation Interests 13
Section 2.2 ...Designation as A Loan ... 14
Section 2.3 ...Purchase and Sale of Participations 14
Section 2.4 ...Lender to Maintain Records 15
Section 2.5 ...Participation Interest Only 15
Section 2.6 ...Evidence of Participation Interest 15
Section 2.7 ...Failure of Loan to Close 16

ARTICLE III ...POSSESSION OF DOCUMENTS;
ABSOLUTE SALE INTENDED 17
Section 3.1 ...Documents Held in Trust; Delivery of Documents to Participant 17
Section 3.2 ...Absolute Sale of Participation Interest 17
Section 3.3 ...Custodial Documents ..... 18
Section 3.4 ...Priority ................ 18

ARTICLE IV ....FUNDING OF ADVANCES ..... 19
Section 4.1 ...Funding Advances and Participation Interests 19
Section 4.2 ...Lender's Certification .. 19
Section 4.3 ...Payments by Participant . 20
Section 4.4 ...Interest on Participations 20
Section 4.5 ...Undivided Interests Determined on Posting Dates 21

ARTICLE V .....ADMINISTRATION OF THE LOANS 22
Section 5.1 ...Administration and Servicing of Loans 22
Section 5.2 ...Lender's Actions Requiring Participant's Consent 23
Section 5.3 ...Standard of Care and Duty to Participant 24
Section 5.4 ...Notices of Defaults and Other Events 24
Section 5.5 ...Management of Real Estate Owned 25
Section 5.6 ...Reports to Participant .. 25
Section 5.7 ...Acquisition of Loan Collateral 25
Section 5.8 ...Extraordinary Servicing Expenses 26
Section 5.9 ...Inspections by Participant 26

ARTICLE VI ....COLLECTIONS ............. 27
Section 6.1 ...Collection and Payment of Collections 27
Section 6.2 ...Order of Application of Collections 27
Section 6.3 ...Reimbursement of Amounts Paid For Ancillary Fees and
Extraordinary Servicing Expenses 28
Section 6.4 ...Loan Fees ............... 28
Section 6.5 ...Interest and Late Payment Fees 28
Section 6.6 ...Principal ............... 28
Section 6.7 ...Returned Payments ....... 28
Section 6.8 ...Application of Collections Upon Distribution
Adjustment Event 29
Section 6.9 ...Reinstated Loans ........ 29
Section 6.10 ..Distribution Adjustment Event Recapture 29
Section 6.11 ..Borrower Payment Defaults and Borrower
Bankruptcy Events 29

2



ARTICLE VII ...DISCLAIMERS; INDEMNITIES 31
Section 7.1 ...Participant's Assumption of Certain Risks 31
Section 7.2 ...Indemnification by Participant 31
Section 7.3 ...Indemnification by Lender 31
Section 7.4 ...Reimbursement Obligation 32
32
Section 7.5 ...Nature of Duties of Lender 32

ARTICLE VIII ..ACKNOWLEDGMENTS, REPRESENTATIONS AND
COVENANT ...... 33
Section 8.1 ...Participant's Acknowledgments 33
Section 8.2 ...Participant's Representations 33
Section 8.3 ...Lender's Representations 34
Section 8.4 ...Lender's Covenants ...... 38

ARTICLE IX ....OTHER ARRANGEMENTS ...... 40
Section 9.1 ...Other Arrangements With Obligors 40
Section 9.2 ...Loan Collateral Held Solely for Loans 40

ARTICLE X .....EVENTS OF DEFAULT AND REMEDIES
Section 10.1 ..Events of Lender Default 41

 

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