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Воскресенье, Январь 19th, 2025

Although parties may contractually agree to undertake a separate obligation, the breach of which does not arise until some future date, the repurchase obligation undertaken by DBSP does not fit this description. To support its contrary position, the Trust relies on our decision in Bulova Watch Co. v <**25>Celotex Corp. (46 NY2d 606 ), where we considered whether the separate repair clause in a contract for the sale of a roof constituted a future promise of performance, the breach of which created a cause of action. The separate clause the seller included in that contract was a «20-Year Guaranty Bond,» which «expressly guaranteed that [the seller] would ‘at its own expense make any repairs . . . that may become necessary to maintain said Roof’ » (id. at 608-609).

We stored that be certain that «embod[ied] an agreement not the same as the brand new package to offer roofing materials,» the fresh new violation from which caused the fresh new statute out of limitations anew (id. from the 610). It was thus once the defendant inside Bulova Watch «did not simply make sure the updates otherwise abilities of the items, however, accessible to perform a help» (id. during the 612). You to service try the latest independent and collection of vow to repair an excellent bad roof-a critical component of brand new parties’ package and you may «a special, independent and additional incentive buying» the latest defendant’s device (id. at the 611). Correctly, new «arrangements contemplating qualities . . . were subject to a half a dozen-season statute . . . powering years occasioned when a breach of the duty to help you resolve the newest fused rooftop occurred» (id.).

DBSP’s treat otherwise repurchase obligations try the brand new Trust’s treatment for a good violation of them representations and you may guarantees, perhaps not a vow of your loans’ coming show

New corrective term from inside the Bulova See explicitly protected future efficiency from the roof and undertook a promise to fix the newest roof in the event the it did not match the seller’s be sure. It [*7] depicted and warranted specific factual statements about the latest loans’ properties at the time of , in the event the MLPA and you will PSA was in fact conducted, and you can expressly reported that those individuals representations and you may guarantees did not survive brand new closure date. Unlike the independent ensure for the Bulova View, DBSP’s get rid of or repurchase obligations could not relatively be looked at given that a definite vow out of coming efficiency. It absolutely was determined by, and even derivative out of, DBSP’s representations and you can guarantees, and this didn’t endure new closure and you can had been breached, whenever, thereon day. [FN3]

Actually, nothing regarding the bargain specified your dump otherwise repurchase obligations would continue for living of money

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 https://paydayloanalabama.com/fruithurst/ for reasons entirely unrelated to the sponsor’s representations and warranties. The sponsor merely warrants certain characteristics of the loans, and promises that if those warranties and representations are materially false, it will cure or repurchase the non-conforming loans within the same statutory period in which remedies for breach of contract (i.e., rescission and expectation damages) could have been sought. [FN4]

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. That action could only have been brought within six years of the date of contract execution. 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. But nothing in the parties’ agreement evidences such an intent. Historically, we have been

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