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4 - Special Provisions


The borrower must repay to the EMRC independent of the actual performance of underlying mortgage loans. If the borrower fails to honor its obligations, EMRC, as the full owner of the mortgage portfolio, cashes all related repayments to the defaulting PML.

In the event of a default on the payment of interest or principal on any advance, or in the event of any other default as defined in the EMRC’s borrowing agreements, the EMRC is authorized to declare all debts owed to the EMRC immediately due and payable, and subject to any and all prepayment fees and charges. PML default will occur upon:

  • Failure to make prompt payment on interest or principal
  • Representations and warranties (made by PML) are misleading or incorrect
  • PML is facing liquidation or winding up
  • PML becomes insolvent
  • PML fails to comply with any of the terms and conditions of the Agreement.
  • Any other reasons identified by Risk Management Department such as; but not limited to, adverse market information, regulator/external auditor negative comments…etc.

If any of the above occurs EMRC at its sole discretion can require PML's to either:

1.     Settle all the mortgage loans outstanding or any mortgage loan outstanding.

2.     Transfer all rights and interest in the mortgage to EMRC or a third party

3.     A combination of 1 and 2

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