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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 the be sure «embod[ied] an agreement unlike new contract to supply roofing system material,» the latest violation from which caused brand new law out-of constraints anew (id. during the 610). It was therefore once the offender when you look at the Bulova View «failed to just guarantee the updates or performance of the products, however, offered to create a help» (id. at the 612). One provider are the brand new independent and you may type of guarantee to correct a good defective rooftop-a critical element of the fresh new parties’ offer and you may «a different sort of, independent and additional bonus to shop for» the latest defendant’s device (id. within 611). Properly, the brand new «agreements thinking about characteristics . . . was indeed susceptible to a six-seasons law . . . running age occasioned whenever a violation of one’s obligation so you can resolve the brand new bonded roof took place» (id.).

DBSP’s eliminate or repurchase obligation are the latest Trust’s remedy for a beneficial breach ones representations and guarantees, perhaps not a hope of the loans’ future efficiency

The fresh corrective clause from inside the Bulova Check out explicitly guaranteed future efficiency off the roof and you can undertook a guarantee to repair the rooftop in the event the they don’t fulfill the seller’s guarantee. It [*7] portrayed and you will justified particular facts about the brand new loans’ qualities since , in the event that MLPA and you will PSA was in fact carried out, and you can expressly stated that people representations and you will guarantees didn’t survive brand new closure day. In place of the new separate verify inside the Bulova See, DBSP’s cure or repurchase obligations could not fairly be regarded as because a definite guarantee off future results. It actually was influenced by, and even derivative from, DBSP’s representations and you will guarantees, which failed to endure the newest closure and you will have been breached, if at all, on that day. [FN3]

Actually, nothing regarding contract specified your clean out otherwise repurchase duty manage last for the life of loans

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. 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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