And it makes sense that DBSP, as sponsor and seller, would not guarantee future performance of the mortgage loans, which <**25>might default 10 or 20 years after issuance for reasons entirely unrelated to the sponsor’s representations and warranties
New mentor just deserves certain qualities of finance, and you may guarantees that if those people warranties and you can representations are materially false, it can eliminate or repurchase new non-conforming fund in same statutory months where remedies for violation off offer (i.age., rescission and expectation injuries) might have been wanted. [FN4]
Where vein, the fresh Trust says it had no just at legislation to sue DBSP up until DBSP refused to eradicate or repurchase the new loans within the necessary period of time; only upcoming performed new PSA allow the Trust to carry match so you’re able to enforce you to definitely collection of contractual obligations
If the cure or repurchase obligation did not exist, the Trust’s only recourse would have been to bring an action against DBSP for breach of the representations and warranties. The cure or repurchase obligation is an alternative remedy, or recourse, for the Trust, but the underlying act the Trust complains of is the same: the quality of the loans and their conformity with the representations and warranties. The Trust argues, in effect, that the cure or repurchase <**25>obligation transformed a standard breach of contract remedy, i.e. damages, into one that lasted for the life of the investment-decades past the statutory period. Read More
