Common use of Allocation of Losses and Subsequent Recoveries on the Group II Certificates Clause in Contracts

Allocation of Losses and Subsequent Recoveries on the Group II Certificates. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Group II Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Group II Certificates on any Distribution Date, the principal portion of each Realized Loss on a Group II Mortgage Loan in a Loan Group shall be allocated as follows: first, to the Class II-B-8 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class II-B-7 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class II-B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class II-B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class II-B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class II-B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class II-B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class II-B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Senior Certificates in the related Certificate Group until the Certificate Principal Balance thereof has been reduced to zero. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of (i) Group II Subordinated Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances of all Group II Certificates in as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Group II Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Group II Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances of all the Group II Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans in the related Group II Loan Group on such date, to an amount less than the aggregate Stated Principal Balance of all of the Group II Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the “Loss Allocation Limitation”). (d) The principal portion of any Realized Losses allocated to a Class of Certificates shall be allocated among the Certificates of such Class in proportion to their respective Certificate Principal Balances. The principal portion of any allocation of Realized Losses shall be accomplished by reducing the Certificate Principal Balance of the related Group II Certificates on the related Distribution Date. Once the aggregate Certificate Principal Balance of the Certificates in a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Loan Group (if any) that are not allocated to the Subordinate Certificates pursuant to Section 6.02.2(b) will be allocated pro rata based upon their respective Certificate Principal Balances to the remaining Group II Senior Certificates of the other Certificate Groups, pro rata based upon their respective Certificate Principal Balances.

Allocation of Losses and Subsequent Recoveries on the Group II Certificates. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Group II Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Group II Certificates on any Distribution Date, the principal portion of each Realized Loss on a Group II Mortgage Loan in a Sub-Loan Group shall be allocated as follows: 127 first, to the Class II-B-8 B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class II-B-7 B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class II-B-6 B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class II-B-5 B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class II-B-4 B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class II-B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class II-B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class II-B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and ninthseventh, to the Senior Certificates in the related Certificate Group until the Certificate Principal Balance Balances thereof has been reduced to zero.zero in accordance with clause (d) below; (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of (i) Group II Subordinated Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances of all Group II Certificates in as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Group II Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Group II Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances of all the Group II Senior Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans in the related Sub-Loan Group in Loan Group II Loan Group on such date, to an amount less than the aggregate Stated Principal Balance of all of the Group II Mortgage Loans in such Sub-Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the “Loss Allocation Limitation”). (d) The principal portion of any Realized Losses allocated to a Class of Certificates shall be allocated among the Certificates of such Class in proportion to their respective Certificate Principal Balances. The principal portion of any allocation of Realized Losses shall be accomplished by reducing the Certificate Principal Balance of the related Group II Certificates on the related Distribution Date. The principal portion of any Realized Losses allocated to the Sub-Loan Group II-1 Certificates will be allocated first to the Class II-1A-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero and then to the Class II-1A-2 Certificates and Class II-1A-1 Certificates, pro rata, until their respective Certificate Principal Balances thereof have been reduced to zero. The principal portion of any Realized Losses allocated to the Sub-Loan Group II-2 Certificates will be allocated first to the 128 Class II-2A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero and then to the Class II-2A-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. The principal portion of any Realized Losses allocated to the Sub-Loan Group II-3 Certificates will be allocated first to the Class II-3A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero and then to the Class II-3A-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. Once the aggregate Certificate Principal Balance of the Certificates in a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Sub-Loan Group (if any) that are not allocated to the Subordinate Certificates pursuant to Section 6.02.2(b) will be allocated pro rata based upon their respective Certificate Principal Balances to the remaining Group II Senior Certificates of the other Certificate Groups, pro rata based upon their respective Certificate Principal Balances. (e) Realized Losses shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine the Subordinate Certificate Writedown Amount. Any Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Certificate Principal Balance of the Class II-B Certificates in the reverse order of their numerical Class designations. (g) The applicable Senior Percentage of Net Interest Shortfalls will be allocated among the Group II Senior Certificates in the related Group II Certificate Group in proportion to the amount of Accrued Certificate Interest that would have been allocated thereto in the absence of such shortfalls. The applicable Subordinate Percentage of Net Interest Shortfall will be allocated among the Group II Subordinate Certificates in proportion to the amount of Accrued Certificate Interest that would have been allocated thereto in the absence of such shortfalls. The interest portion of any Realized Losses with respect to the Group II Mortgage Loans occurring on or prior to the Cross-Over Date will be allocated to the Class II-B Certificates in inverse order of their numerical Class designations. Following the Cross-Over Date, the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated to the Group II Senior Certificates in the related Group II Certificate Group on a pro rata basis in proportion to the amount of Accrued Certificate Interest that would have been allocated thereto in the absence of such Realized Losses. (h) In addition, in the event that the Master Servicer receives any Subsequent Recoveries from a Servicer, the Master Servicer shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Group II Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Group II Subordinate Certificates pursuant to this Section 6.02.2. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Group II Subordinate Certificates, beginning with the Class of Group II Subordinate Certificates with the next highest payment priority, up to the amount of such 129 Realized Losses previously allocated to such Class or Classes of Group II Certificates pursuant to this Section 6.02.2. Holders of such Certificates will not be entitled to any payments in respect of current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Group II Subordinate Certificate of such Class in accordance with its respective Fractional Undivided Interest.

Allocation of Losses and Subsequent Recoveries on the Group II Certificates. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Group II Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Group II Certificates on any Distribution Date, the principal portion of each Realized Loss on a Group II Mortgage Loan in a Sub-Loan Group shall be allocated as follows: first, to the Class II-B-12 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class II-B-11 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class II-B-10 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class II-B-9 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class II-B-8 Certificates until the Certificate Principal Balance thereof has been reduced to zero; secondsixth, to the Class II-B-7 Certificates until the Certificate Principal Balance thereof has been reduced to zero; thirdseventh, to the Class II-B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourtheighth, to the Class II-B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthninth, to the Class II-B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixthtenth, to the Class II-B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventheleventh, to the Class II-B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eighthtwelfth, to the Class II-B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and ninththirteenth, to the Senior Certificates in the related Certificate Group until the Certificate Principal Balance Balances thereof has been reduced to zero.zero in accordance with clause (d) below; (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of (i) Group II Subordinated Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances of all Group II Certificates in as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Group II Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Group II Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances of all the Group II Senior Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans in the related Sub-Loan Group in Loan Group II Loan Group on such date, to an amount less than the aggregate Stated Principal Balance of all of the Group II Mortgage Loans in such Sub-Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the “Loss Allocation Limitation”). (d) The principal portion of any Realized Losses allocated to a Class of Certificates shall be allocated among the Certificates of such Class in proportion to their respective Certificate Principal Balances. The principal portion of any allocation of Realized Losses shall be accomplished by reducing the Certificate Principal Balance of the related Group II Certificates on the related Distribution Date. The principal portion of any Realized Losses allocated to the Sub-Loan Group II-1 Certificates will be allocated first to the Class II-1A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero and then to the Class II-1A-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. The principal portion of any Realized Losses allocated to the Sub-Loan Group II-2 Certificates will be allocated first to the Class II-2A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero and then to the Class II-2A-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. The principal portion of any Realized Losses allocated to the Sub-Loan Group II-3 Certificates will be allocated first to the Class II-3A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero and then to the Class II-3A-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. The principal portion of any Realized Losses allocated to the Sub-Loan Group II-4 Certificates will be allocated first to the Class II-4A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero and then to the Class II-4A-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. Once the aggregate Certificate Principal Balance of the Certificates in a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Sub-Loan Group (if any) that are not allocated to the Subordinate Certificates pursuant to Section 6.02.2(b) will be allocated pro rata based upon their respective Certificate Principal Balances to the remaining Group II Senior Certificates of the other Certificate Groups, pro rata based upon their respective Certificate Principal Balances. (e) Realized Losses shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date.

Allocation of Losses and Subsequent Recoveries on the Group II Certificates. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Group II Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Group II Certificates on any Distribution Date, the principal portion of each Realized Loss on a Group II Mortgage Loan in a Loan Group shall be allocated as follows: first, to the Class II-B-8 B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class II-B-7 B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class II-B-6 B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class II-B-5 B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class II-B-4 B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class II-B-3 B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class II-B-2 M-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class II-B-1 M-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class II-M-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class II-M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class II-M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class II-M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and ninththirteenth, to the Senior Certificates in the related Certificate Group until the Certificate Principal Balance thereof has been reduced to zero. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of (i) Group II Subordinated Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances of all Group II Certificates in as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Group II Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Group II Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances of all the Group II Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans in the related Group II Loan Group on such date, to an amount less than the aggregate Stated Principal Balance of all of the Group II Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the “Loss Allocation Limitation”). (d) The principal portion of any Realized Losses allocated to a Class of Certificates shall be allocated among the Certificates of such Class in proportion to their respective Certificate Principal Balances. The principal portion of any allocation of Realized Losses shall be accomplished by reducing the Certificate Principal Balance of the related Group II Certificates on the related Distribution Date. The principal portion of any Realized Losses allocated to the Group II-1 Certificates will be allocated first to the Class II-1A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero and then to the Class II-1A-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. Once the aggregate Certificate Principal Balance of the Certificates in a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Loan Group (if any) that are not allocated to the Subordinate Certificates pursuant to Section 6.02.2(b) will be allocated pro rata based upon their respective Certificate Principal Balances to the remaining Group II Senior Certificates of the other Certificate Groups, pro rata based upon their respective Certificate Principal Balances.

Allocation of Losses and Subsequent Recoveries on the Group II Certificates. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Group II Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Group II Certificates on any Distribution Date, the principal portion of each Realized Loss on a Group II Mortgage Loan in a Sub-Loan Group shall be allocated as follows: first, to the Class II-B-8 B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class II-B-7 B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class II-B-6 B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class II-B-5 B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class II-B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class II-B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class II-B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eighth123 sixth, to the Class II-B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and ninthseventh, to the Senior Certificates in the related Certificate Group until the Certificate Principal Balance Balances thereof has been reduced to zero.zero in accordance with clause (d) below; (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of (i) Group II Subordinated Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances of all Group II Certificates in as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Group II Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Group II Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances of all the Group II Senior Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans in the related Sub-Loan Group in Loan Group II Loan Group on such date, to an amount less than the aggregate Stated Principal Balance of all of the Group II Mortgage Loans in such Sub-Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the “Loss Allocation Limitation”). (d) The principal portion of any Realized Losses allocated to a Class of Certificates shall be allocated among the Certificates of such Class in proportion to their respective Certificate Principal Balances. The principal portion of any allocation of Realized Losses shall be accomplished by reducing the Certificate Principal Balance of the related Group II Certificates on the related Distribution Date. The principal portion of any Realized Losses allocated to the Sub-Loan Group II-1 Certificates will be allocated first to the Class II-1A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero and then to the Class II-1A-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. The principal portion of any Realized Losses allocated to the Sub-Loan Group II-2 Certificates will be allocated first to the Class II-2A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero and then to the Class II-2A-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. The principal portion of any Realized Losses allocated to the Sub-Loan Group II-3 Certificates will be allocated first to the Class II-3A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero and then to the Class II-3A-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. The principal portion of any Realized Losses allocated to the Sub-Loan Group II-4 Certificates will be allocated first to the Class II-4A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero and then to the Class II-4A-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. Once the aggregate Certificate Principal Balance of the Certificates in a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Sub-Loan Group (if any) that are not allocated to the Subordinate Certificates pursuant to Section 6.02.2(b) will be allocated pro rata based upon their respective Certificate Principal Balances to the remaining 124 Group II Senior Certificates of the other Certificate Groups, pro rata based upon their respective Certificate Principal Balances. (e) Realized Losses shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine the Subordinate Certificate Writedown Amount. Any Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Certificate Principal Balance of the Class II-B Certificates in the reverse order of their numerical Class designations. (g) The applicable Senior Percentage of Net Interest Shortfalls will be allocated among the Group II Senior Certificates in the related Group II Certificate Group in proportion to the amount of Accrued Certificate Interest that would have been allocated thereto in the absence of such shortfalls. The applicable Subordinate Percentage of Net Interest Shortfall will be allocated among the Group II Subordinate Certificates in proportion to the amount of Accrued Certificate Interest that would have been allocated thereto in the absence of such shortfalls. The interest portion of any Realized Losses with respect to the Group II Mortgage Loans occurring on or prior to the Cross-Over Date will be allocated to the Class II-B Certificates in inverse order of their numerical Class designations. Following the Cross-Over Date, the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated to the Group II Senior Certificates in the related Group II Certificate Group on a pro rata basis in proportion to the amount of Accrued Certificate Interest that would have been allocated thereto in the absence of such Realized Losses. (h) In addition, in the event that the Master Servicer receives any Subsequent Recoveries from a Servicer, the Master Servicer shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Group II Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Group II Subordinate Certificates pursuant to this Section 6.02.2. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Group II Subordinate Certificates, beginning with the Class of Group II Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class or Classes of Group II Certificates pursuant to this Section 6.02.2. Holders of such Certificates will not be entitled to any payments in respect of current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Group II Subordinate Certificate of such Class in accordance with its respective Fractional Undivided Interest.

Allocation of Losses and Subsequent Recoveries on the Group II Certificates. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Group II Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Group II Certificates on any Distribution Date, the principal portion of each Realized Loss on a Group II Mortgage Loan in a Loan Group shall be allocated as follows: first, to the Class II-B-8 B-7 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class II-B-7 B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class II-B-6 B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class II-B-5 B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class II-B-4 B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class II-B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class II-B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eighthand seventh, to the Class II-B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Senior Certificates in the related Certificate Group until the Certificate Principal Balance thereof has been reduced to zero. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of (i) Group II Subordinated Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances of all Group II Certificates in as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Group II Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Group II Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances of all the Group II Senior Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans in the related Group II Loan Group on such date, to an amount less than the aggregate Stated Principal Balance of all of the Group II Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the “Loss Allocation Limitation”). (d) The principal portion of any Realized Losses allocated to a Class of Certificates shall be allocated among the Certificates of such Class in proportion to their respective Certificate Principal Balances. The principal portion of any allocation of Realized Losses shall be accomplished by reducing the Certificate Principal Balance of the related Group II Certificates on the related Distribution Date. Once the aggregate Certificate Principal Balance of the Certificates in a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Loan Group (if any) that are not allocated to the Subordinate Certificates pursuant to Section 6.02.2(b) will be allocated pro rata based upon their respective Certificate Principal Balances to the remaining Group II Senior Certificates of the other Certificate Groups, pro rata based upon their respective Certificate Principal Balances.

Allocation of Losses and Subsequent Recoveries on the Group II Certificates. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Group II Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Group II Certificates on any Distribution Date, the principal portion of each Realized Loss on a Group II Mortgage Loan in a Loan Group shall be allocated as follows: first, to the Class II-B-8 B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class II-B-7 B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class II-B-6 B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class II-B-5 B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class II-B-4 B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class II-B-3 B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class II-B-2 M-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class II-B-1 M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class II-M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class II-M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and nintheleventh, to the Senior Certificates in the related Certificate Group until the Certificate Principal Balance thereof has been reduced to zero. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of (i) Group II Subordinated Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances of all Group II Certificates in as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Group II Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Group II Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances of all the Group II Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans in the related Group II Loan Group on such date, to an amount less than the aggregate Stated Principal Balance of all of the Group II Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the “Loss Allocation Limitation”). (d) The principal portion of any Realized Losses allocated to a Class of Certificates shall be allocated among the Certificates of such Class in proportion to their respective Certificate Principal Balances. The principal portion of any allocation of Realized Losses shall be accomplished by reducing the Certificate Principal Balance of the related Group II Certificates on the related Distribution Date. The principal portion of any Realized Losses allocated to the Group II-2 Certificates will be allocated, concurrently and pro rata, to (i) the Class II-2A-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero and (ii) the Class II-2A-3 Certificates and the Class II-2A-2 Certificates, sequentially, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero. The principal portion of any Realized Losses allocated to the Group II-3 Certificates will be allocated first to the Class II-3A-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero and then, concurrently and pro rata, to (i) the Class II-3A-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero and (ii) the Class II-3A-3 Certificates and the Class II-3A-2 Certificates, sequentially, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero. The principal portion of any Realized Losses allocated to the Group II-4 Certificates will be allocated first to the Class II-4A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero and then to the Class II-4A-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. The principal portion of any Realized Losses allocated to the Group II-5 Certificates will be allocated first to the Class II-5A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero and then to the Class II-5A-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. Once the aggregate Certificate Principal Balance of the Certificates in a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Loan Group (if any) that are not allocated to the Subordinate Certificates pursuant to Section 6.02.2(b) will be allocated pro rata based upon their respective Certificate Principal Balances to the remaining Group II Senior Certificates of the other Certificate Groups, pro rata based upon their respective Certificate Principal Balances.