medium · Asset-Backed Securities asset-nuances

Assuming the proposed successor satisfies the PSA’s eligibility, notice, rating, and appointment conditions, which right may the representative exercise?

1. It may prohibit every appraisal-reduction calculation for the specially serviced loan while control remains active.
2. It may replace the special servicer with the eligible successor under the PSA conditions.
3. It may require the senior certificates to buy the controlling class at par immediately.
4. It may forgive loan principal unilaterally without applying the servicing standard.

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