Common use of Allocation of Losses on the Mortgage Loans Clause in Contracts

Allocation of Losses on the Mortgage Loans. On each Payment Date, the amount of Liquidation Loss Amounts incurred on the Mortgage Loans in the related Collection Period that were not distributed pursuant to clauses third, fourth, fifth, sixth or seventh of Sections 3.05(a) will be applied as follows: FIRST, to reduce any Overcollateralization Amount (after allocation of Principal Collections and Interest Collections on the Mortgage Loans for such Payment Date) until such amount has been reduced to $0; SECOND, to reduce the Note Balance of the Class B-2 Notes, until the outstanding Note Balance thereof has been reduced to $0; THIRD, to reduce the Note Balance of the Class B-1 Notes, until the outstanding Note Balance thereof has been reduced to $0; FOURTH, to reduce the Note Balance of the Class M-2 Notes, until the outstanding Note Balance thereof has been reduced to $0; FIFTH, to reduce the Note Balance of the Class M-1 Notes, until the outstanding Note Balance thereof has been reduced to $0; and SIXTH, to reduce the Note Balance of the Senior Notes until the outstanding Note Balances thereof have been reduced to zero. Any such Liquidation Loss Amounts allocated to Senior Notes (other than the Class [A-IO] Notes) shall be allocated to the Senior Notes on a pro rata basis. The reduction of the Note Balance of any Class of Notes by application of Liquidation Loss Amounts as described above shall entitle such Class to reimbursement for such amount, with interest thereon, in accordance with Section 3.05(a) as a distribution of the Liquidation Loss Distribution Amount (but without double counting for any prior distribution of Liquidation Loss Distribution Amounts to such Class covering such loss amounts). Payment of that reimbursement amount will not further reduce the Note Balance of the applicable Class of Subordinate Notes. Notwithstanding any provision of this section to the contrary, after the Note Balance of any Class has been reduced to $0, that Class will no longer be entitled to distributions.

Allocation of Losses on the Mortgage Loans. On each Payment Date, the amount of Liquidation Loss Amounts incurred on the Mortgage Loans in the related Collection Period that were not distributed pursuant to clauses third, fourth, fifth, sixth or seventh of Sections 3.05(a) will be applied as follows: FIRSTfirst, to reduce any Overcollateralization Amount (after allocation of Principal Collections and Interest Collections on the Mortgage Loans for such Payment Date) until such amount has been reduced to $0; SECONDsecond, to reduce the Note Balance of the Class B-2 Notes, until the outstanding Note Balance thereof has been reduced to $0; THIRDthird, to reduce the Note Balance of the Class B-1 Notes, until the outstanding Note Balance thereof has been reduced to $0; FOURTHfourth, to reduce the Note Balance of the Class M-2 Notes, until the outstanding Note Balance thereof has been reduced to $0; FIFTHfifth, to reduce the Note Balance of the Class M-1 Notes, until the outstanding Note Balance thereof has been reduced to $0; and SIXTHsixth, to reduce the Note Balance of the Senior Notes until the outstanding Note Balances thereof have been reduced to zero. Any such Liquidation Loss Amounts allocated to Senior Notes (other than the Class [A-IO] Notes) shall be allocated to the Senior Notes on a pro rata basis. The reduction of the Note Balance of any Class of Notes by application of Liquidation Loss Amounts as described above shall entitle such Class to reimbursement for such amount, with interest thereon, in accordance with Section 3.05(a) as a distribution of the Liquidation Loss Distribution Amount (but without double counting for any prior distribution of Liquidation Loss Distribution Amounts to such Class covering such loss amounts). Payment of that reimbursement amount will not further reduce the Note Balance of the applicable Class of Subordinate Notes. Notwithstanding any provision of this section to the contrary, after the Note Balance of any Class has been reduced to $0, that Class will no longer be entitled to distributions.

Allocation of Losses on the Mortgage Loans. On each Payment Date, the amount of Liquidation Loss Amounts incurred on the Mortgage Loans in the related Collection Period that were not distributed pursuant to clauses thirdSections 3.05(a)(v), fourth(vi), fifth, sixth (vii) or seventh of Sections 3.05(a(viii) will be applied as follows: FIRSTfirst, to reduce any Overcollateralization Amount (after allocation of Principal Collections and Interest Collections on the Mortgage Loans for such Payment Date) until such amount has been reduced to $0zero; SECOND, to reduce the Note Balance of the Class B-2 Notes, until the outstanding Note Balance thereof has been reduced to $0; THIRDsecond, to reduce the Note Balance of the Class B-1 Notes, until the outstanding Note Balance thereof has been reduced to $0zero; FOURTHthird, to reduce the Note Balance of the Class M-2 Notes, until the outstanding Note Balance thereof has been reduced to $0zero; FIFTHfourth, to reduce the Note Balance of the Class M-1 Notes, until the outstanding Note Balance thereof has been reduced to $0; zero, and SIXTH, last to reduce the Note Balance of the Senior Class A Notes until the outstanding Note Balances thereof have been reduced to zero. Any such Liquidation Loss Amounts allocated to Senior Class A Notes (other than the Class [A-IO] Notes) shall be allocated to the Senior Notes Class A Notes, on a pro rata basis. The reduction of the Note Balance of any Class of Notes by application of Liquidation Loss Amounts as described above shall entitle entitles such Class to reimbursement for such amount, with interest thereon, in accordance with Section 3.05(a) as a distribution of the Liquidation Loss Distribution Amount (but without double counting for any prior distribution of Liquidation Loss Distribution Amounts to such Class covering such loss amounts)3.05. Payment of that reimbursement amount will not further reduce the Note Balance of the applicable Class of Subordinate NotesClass. Notwithstanding any provision of this section to the contrary, after After the Note Balance of any Class has been reduced to $0zero, that Class will no longer be entitled to distributionsreimbursement.

Allocation of Losses on the Mortgage Loans. On each Payment Date, the amount of Liquidation Loss Amounts incurred on the Mortgage Loans in Group II in the related Collection Period that were not distributed pursuant to clauses thirdSections 3.05(b)(vi), fourth(vii), fifth, sixth (viii) or seventh of Sections 3.05(a(ix) will be applied as follows: FIRSTfirst, to reduce any Overcollateralization Amount for Group II (after allocation of Principal Collections and Interest Collections on the Mortgage Loans for such Payment Date) until such amount has been reduced to $0zero; SECONDsecond, to reduce the Note Balance of the Class B-2 IIB﷓1 Notes, until the outstanding Note Balance thereof has been reduced to $0zero; THIRDthird, to reduce the Note Balance of the Class B-1 IIM-2 Notes, until the outstanding Note Balance thereof has been reduced to $0zero; FOURTHfourth, to reduce the Note Balance of the Class M-2 IIM-1 Notes, until the outstanding Note Balance thereof has been reduced to $0; FIFTHzero, to reduce the Note Balance of the Class M-1 Notes, until the outstanding Note Balance thereof has been reduced to $0; and SIXTH, last to reduce the Note Balance of the Senior Group II Notes until the outstanding Note Balances thereof have been reduced to zero. Any such Liquidation Loss Amounts allocated to Senior Group II Notes (other than the Class [A-IO] Notes) shall be allocated to the Senior Notes Group II Notes, on a pro rata basis. The reduction of the Note Balance of any Class of Notes by application of Liquidation Loss Amounts as described above shall entitle entitles such Class to reimbursement for such amount, with interest thereon, in accordance with Section 3.05(a) as a distribution of the Liquidation Loss Distribution Amount (but without double counting for any prior distribution of Liquidation Loss Distribution Amounts to such Class covering such loss amounts)3.05. Payment of that reimbursement amount will not further reduce the Note Balance of the applicable Class of Subordinate NotesClass. Notwithstanding any provision of this section to the contrary, after After the Note Balance of any Class has been reduced to $0zero, that Class will no longer be entitled to distributionsreimbursement.

Allocation of Losses on the Mortgage Loans. On each Payment Date, the amount of Liquidation Loss Amounts incurred on the Mortgage Loans in the related Collection Period that were not distributed pursuant to clauses thirdSections 3.05(v), fourth(vi), fifth(vii), sixth or seventh of Sections 3.05(a(viii) and (ix) will be applied as follows: FIRSTfirst, to reduce any Overcollateralization Amount (after allocation of Principal Collections and Interest Collections on the Mortgage Loans for such Payment Date) until such amount has been reduced to $0zero; SECONDsecond, to reduce the Note Balance of the Class B-3 Notes, until the Outstanding Note Balance thereof has been reduced to zero; third, to reduce the Note Balance of the Class B-2 Notes, until the outstanding Outstanding Note Balance thereof has been reduced to $0zero; THIRDfourth, to reduce the Note Balance of the Class B-1 Notes, until the outstanding Outstanding Note Balance thereof has been reduced to $0zero; FOURTHsixth, to reduce the Note Balance of the Class M-2 Notes, until the outstanding Outstanding Note Balance thereof has been reduced to $0zero; FIFTHand fifth, to reduce the Note Balance of the Class M-1 Notes, until the outstanding Outstanding Note Balance thereof has been reduced to $0; and SIXTH, to reduce the Note Balance zero. If none of the Senior Subordinate Notes until the outstanding Note Balances thereof have been reduced to zero. Any such remain Outstanding, any Liquidation Loss Amounts shall be allocated to pro rata among the Variable Funding Notes and the Senior Notes (other than the Class [A-IO] Variable Funding Notes) shall be allocated according to the Senior Notes on a pro rata basistheir remaining Note Balances. The reduction of the Note Balance of any Class of Notes by application of Liquidation Loss Amounts as described above shall entitle (such amount, an “Applied Loss Amount”) entitles such Class to reimbursement for such amount, with interest thereon, in accordance with Section 3.05(a) as a distribution of the Liquidation Loss Distribution Amount (but without double counting for any prior distribution of Liquidation Loss Distribution Amounts to such Class covering such loss amounts)3.05. Payment of that reimbursement amount will not further reduce the Note Balance of the applicable Class Class. With respect to any class of Subordinate Notes. Notwithstanding Notes to which an Applied Loss Amount as been allocated (including any provision of this section class for which the related Note Balance has been reduced to the contraryzero, after the Note Balance of any Class has been reduced to $0, that Class will no longer be entitled increased up to distributionsthe amount of the related Recoveries for that Payment Date, beginning with the class of Subordinate Notes with the highest relative payment priority, up to the amount of Applied Loss Amount previously allocated to reduce the related Note Balance.

Allocation of Losses on the Mortgage Loans. On each Payment Date, the amount of Liquidation Loss Amounts incurred on the Mortgage Loans in the related Collection Period that were not distributed pursuant to clauses third, fourth, fifth, sixth or seventh clause third of Sections 3.05(a) will be applied as follows: FIRSTfirst, to reduce any Overcollateralization Amount (after allocation of Principal Collections and Interest Collections on the Mortgage Loans for such Payment Date) until such amount has been reduced to $0; SECONDsecond, to reduce the Note Balance of the Class B-2 M-7 Notes, until the outstanding Note Balance thereof has been reduced to $0; THIRDthird, to reduce the Note Balance of the Class B-1 M-6 Notes, until the outstanding Note Balance thereof has been reduced to $0; FOURTHfourth, to reduce the Note Balance of the Class M-5 Notes, until the outstanding Note Balance thereof has been reduced to $0; fifth, to reduce the Note Balance of the Class M-4 Notes, until the outstanding Note Balance thereof has been reduced to $0; sixth, to reduce the Note Balance of the Class M-4 Notes, until the outstanding Note Balance thereof have been reduced to $0; seventh, to reduce the Note Balance of the Class M-3 Notes, until the outstanding Note Balance thereof have been reduced to $0; eight, to reduce the Note Balance of the Class M-2 Notes, until the outstanding Note Balance thereof has have been reduced to $0; FIFTHninth, to reduce the Note Balance of the Class M-1 Notes, until the outstanding Note Balance thereof has have been reduced to $0; and SIXTHtenth, to reduce the Note Balance of the remaining Senior Notes Notes, until the outstanding Note Balances thereof have been reduced to zero$0. Any After the Note Balance of the Class M-1 Notes has been reduced to $0, any such Liquidation Loss Amounts allocated to the remaining Senior Notes (other than the Class [A-IO] IO Notes) shall be allocated to the such remaining Senior Notes on a pro rata basis. The reduction of the Note Balance of any Class of Notes by application of Liquidation Loss Amounts as described above shall entitle such Class to reimbursement for such amount, with interest thereon, in accordance with Section 3.05(a) as a distribution of the Liquidation Loss Distribution Amount (but without double counting for any prior distribution of Liquidation Loss Distribution Amounts to such Class covering such loss amounts). Payment of that reimbursement amount will not further reduce the Note Balance of the applicable Class of Subordinate Notes. In the event of any Subsequent Recoveries relating to a Liquidated Mortgage Loan for which (i) a Liquidation Loss Amount was allocated in reduction of the Note Balance or Balances of any Class or Classes of Notes as described above, (ii) a reimbursement amount was not previously paid, and (iii) such Subsequent Recoveries would be applied as a recovery of principal, the Note Balance or Balances of such Class or Classes of Notes that were previously reduced shall be increased, sequentially, in the order of priority set forth above, by an amount equal to the amount of any such Subsequent Recoveries that are applied as a recovery of principal, but not by more than the Liquidation Loss Amount previously allocated in reduction of the Note Balance or Balances of such Class or Classes of Notes. Notwithstanding any provision of this section to the contrary, after the Note Balance of any Class has been reduced to $0, that Class will no longer be entitled to distributions.

Allocation of Losses on the Mortgage Loans. On each Payment Date, the amount of Liquidation Loss Amounts incurred on the Mortgage Loans in the related Collection Period that were not distributed pursuant to clauses thirdTHIRD, fourthFOURTH, fifthFIFTH, sixth SIXTH or seventh SEVENTH of Sections 3.05(a) will be applied as follows: FIRST, to reduce any Overcollateralization Amount (after allocation of Principal Collections and Interest Collections on the Mortgage Loans for such Payment Date) until such amount has been reduced to $0; SECOND, to reduce the Note Balance of the Class B-2 Notes, until the outstanding Note Balance thereof has been reduced to $0; THIRD, to reduce the Note Balance of the Class B-1 Notes, until the outstanding Note Balance thereof has been reduced to $0; FOURTH, to reduce the Note Balance of the Class M-2 Notes, until the outstanding Note Balance thereof has been reduced to $0; FIFTH, to reduce the Note Balance of the Class M-1 Notes, until the outstanding Note Balance thereof has been reduced to $0; and SIXTH, to reduce the Note Balance of the Senior Notes until the outstanding Note Balances thereof have been reduced to zero. Any such Liquidation Loss Amounts allocated to Senior Notes (other than the Class [A-IO] IO Notes) shall be allocated to the Senior Notes on a pro rata PRO RATA basis. The reduction of the Note Balance of any Class of Notes by application of Liquidation Loss Amounts as described above shall entitle such Class to reimbursement for such amount, with interest thereon, in accordance with Section 3.05(a) as a distribution of the Liquidation Loss Distribution Amount (but without double counting for any prior distribution of Liquidation Loss Distribution Amounts to such Class covering such loss amounts). Payment of that reimbursement amount will not further reduce the Note Balance of the applicable Class of Subordinate Notes. Notwithstanding any provision of this section to the contrary, after the Note Balance of any Class has been reduced to $0, that Class will no longer be entitled to distributions.

Allocation of Losses on the Mortgage Loans. On each Payment Date, the amount of Liquidation Loss Amounts incurred on the Mortgage Loans in the related Collection Period that were not distributed pursuant to clauses thirdSections 3.05(a)(iv), fourth, fifth, sixth (vi) or seventh of Sections 3.05(a(vii) will be applied as follows: FIRSTfirst, to reduce any Overcollateralization Amount (after allocation of Principal Collections and Interest Collections on the Mortgage Loans for such Payment Date) until such amount has been reduced to $0zero; SECONDsecond, to reduce the Note Balance of the Class B-2 B Notes, until the outstanding Note Balance thereof has been reduced to $0zero; THIRDthird, to reduce the Note Balance of the Class B-1 M Notes, until the outstanding Note Balance thereof has been reduced to $0zero; FOURTHand last, to reduce the Note Balance extent not covered by a draw on the Policy due to an Enhancer Default in respect of the Class M-2 Notes, until the outstanding Note Balance thereof has been reduced to $0; FIFTH, to reduce the Note Balance of the Class M-1 Notes, until the outstanding Note Balance thereof has been reduced to $0; and SIXTHInsured Amounts for such Payment Date, to reduce the Note Balance of the Senior Notes until the outstanding Note Balances thereof have been reduced to zero. Any such Liquidation Loss Amounts allocated to Senior Notes (other than the Class [A-IO] IO Notes) shall be allocated to the Senior Notes on a pro rata basis. The reduction of the Note Balance of any Class of Notes by application of Liquidation Loss Amounts as described above shall entitle such Class to reimbursement for such amount, with interest thereon, in accordance with Section 3.05(a) 3.05 as a distribution of the Liquidation Loss Distribution Amount (but without double counting for any prior distribution of Liquidation Loss Distribution Amounts to such Class covering such loss amounts). Payment of that reimbursement amount will not further reduce the Note Balance of the applicable Class of Subordinate Notes. Notwithstanding any provision of this section to the contrary, after the Note Balance of any Class has been reduced to $0zero, that Class will no longer be entitled to distributions.

Allocation of Losses on the Mortgage Loans. On each Payment Date, the amount of Liquidation Loss Amounts incurred on the Mortgage Loans in the related Collection Period that were not distributed pursuant to clauses thirdTHIRD, fourthFOURTH, fifthFIFTH, sixth SIXTH or seventh SEVENTH of Sections 3.05(a) will be applied as follows: FIRST, to reduce any Overcollateralization Amount (after allocation of Principal Collections and Interest Collections on the Mortgage Loans for such Payment Date) until such amount has been reduced to $0; SECOND, to reduce the Note Balance of the Class B-2 Notes, until the outstanding Note Balance thereof has been reduced to $0; THIRD, to reduce the Note Balance of the Class B-1 Notes, until the outstanding Note Balance thereof has been reduced to $0; FOURTH, to reduce the Note Balance of the Class M-2 Notes, until the outstanding Note Balance thereof has been reduced to $0; FIFTH, to reduce the Note Balance of the Class M-1 Notes, until the outstanding Note Balance thereof has been reduced to $0; and SIXTH, to reduce the Note Balance of the Class I-A2 Notes, until the outstanding Note Balance thereof have been reduced to $0; and SEVENTH, to reduce the Note Balance of the remaining Senior Notes Notes, until the outstanding Note Balances thereof have been reduced to zero$0. Any After the Note Balance of the Class I-A2 Notes has been reduced to $0, any such Liquidation Loss Amounts allocated to the remaining Senior Notes (other than the Class [A-IO] IO Notes) shall be allocated to the such remaining Senior Notes on a pro rata PRO RATA basis. The reduction of the Note Balance of any Class of Notes by application of Liquidation Loss Amounts as described above shall entitle such Class to reimbursement for such amount, with interest thereon, in accordance with Section 3.05(a) as a distribution of the Liquidation Loss Distribution Amount (but without double counting for any prior distribution of Liquidation Loss Distribution Amounts to such Class covering such loss amounts). Payment of that reimbursement amount will not further reduce the Note Balance of the applicable Class of Subordinate Notes. In the event of any subsequent recoveries relating to a Liquidated Mortgage Loan for which (i) a Liquidation Loss Amount was allocated in reduction of the Note Balance or Balances of any Class or Classes of Notes as described above, (ii) a reimbursement amount was not previously paid, and (iii) such subsequent recoveries would be applied as a recovery of principal, the Note Balance or Balances of such Class or Classes of Notes that were previously reduced shall be increased, sequentially, in the order of priority set forth above, by an amount equal to the amount of any such subsequent recoveries that are applied as a recovery of principal, but not by more than the Liquidation Loss Amount previously allocated in reduction of the Note Balance or Balances of such Class or Classes of Notes. Notwithstanding any provision of this section to the contrary, after the Note Balance of any Class has been reduced to $0, that Class will no longer be entitled to distributions.

Allocation of Losses on the Mortgage Loans. On each Payment Date, the amount of Liquidation Loss Amounts incurred on the Mortgage Loans in the related Collection Period that were not distributed pursuant to clauses thirdSections 3.05(b)(v), fourth(vi), fifth, sixth or seventh of Sections 3.05(a(vii) and (viii) will be applied as follows: FIRSTfirst, to reduce any Overcollateralization Amount (after allocation of Principal Collections and Interest Collections on the Mortgage Loans for such Payment Date) until such amount has been reduced to $0zero; SECONDsecond, to reduce the Note Balance of the Class B-2 IIB-1 Notes, until the outstanding Outstanding Note Balance thereof has been reduced to $0zero; THIRDthird, to reduce the Note Balance of the Class B-1 IIM-2 Notes, until the outstanding Outstanding Note Balance thereof has been reduced to $0zero; FOURTHfourth, to reduce the Note Balance of the Class M-2 IIM-1 Notes, until the outstanding Outstanding Note Balance thereof has been reduced to $0; FIFTHzero, to reduce the Note Balance of the Class M-1 Notes, until the outstanding Note Balance thereof has been reduced to $0; and SIXTH, last to reduce the Note Balance of the Senior Group II Notes until the outstanding Outstanding Note Balances thereof have been reduced to zero. Any such Liquidation Loss Amounts allocated to Senior Notes (other than the Class [A-IO] Notes) shall be allocated to the Senior Notes on a pro rata basis. The reduction of the Note Balance of any Class of Notes by application of Liquidation Loss Amounts as described above shall entitle (such amount, an “Applied Loss Amount”) entitles such Class to reimbursement for such amount, with interest thereon, in accordance with Section 3.05(a) as a distribution of the Liquidation Loss Distribution Amount (but without double counting for any prior distribution of Liquidation Loss Distribution Amounts to such Class covering such loss amounts3.05(b). Payment of that reimbursement amount will not further reduce the Note Balance of the applicable Class Class. With respect to any class of Subordinate Notes. Notwithstanding Group II Notes to which an Applied Loss Amount has been allocated (including any provision of this section class for which the related Note Balance has been reduced to the contraryzero), after the Note Balance of any Class has been reduced to $0, that Class will no longer be entitled increased up to distributionsthe amount of the related Recoveries for that Payment Date, beginning with the class of Subordinate Group II Notes with the highest relative payment priority, up to the amount of Applied Loss Amount previously allocated to reduce the related Note Balance.

Allocation of Losses on the Mortgage Loans. On each Payment Date, the amount of Liquidation Loss Amounts incurred on the Mortgage Loans in Group II in the related Collection Period that were not distributed pursuant to clauses thirdSections 3.05(b)(iv), fourth(v), fifth, sixth (vi) or seventh of Sections 3.05(a(vii) will be applied as follows: FIRSTfirst, to reduce any Overcollateralization Amount for Group II (after allocation of Principal Collections and Interest Collections on the Mortgage Loans for such Payment Date) until such amount has been reduced to $0zero; SECONDsecond, to reduce the Note Balance of the Class B-2 IIB-1 Notes, until the outstanding Note Balance thereof has been reduced to $0zero; THIRDthird, to reduce the Note Balance of the Class B-1 IIM-2 Notes, until the outstanding Note Balance thereof has been reduced to $0zero; FOURTHfourth, to reduce the Note Balance of the Class M-2 IIM-1 Notes, until the outstanding Note Balance thereof has been reduced to $0; FIFTHzero, to reduce the Note Balance of the Class M-1 Notes, until the outstanding Note Balance thereof has been reduced to $0; and SIXTH, last to reduce the Note Balance of the Senior Group II Notes until the outstanding Note Balances thereof have been reduced to zero. Any such Liquidation Loss Amounts allocated to Senior Group II Notes (other than the Class [A-IO] Notes) shall be allocated to the Senior Group II Notes on a pro rata basis. The reduction of the Note Balance of any Class of Notes by application of Liquidation Loss Amounts as described above shall entitle entitles such Class to reimbursement for such amount, with interest thereon, in accordance with Section 3.05(a) as a distribution of the Liquidation Loss Distribution Amount (but without double counting for any prior distribution of Liquidation Loss Distribution Amounts to such Class covering such loss amounts)3.05. Payment of that reimbursement amount will not further reduce the Note Balance of the applicable Class of Subordinate NotesClass. Notwithstanding any provision of this section to the contrary, after After the Note Balance of any Class has been reduced to $0zero, that Class will no longer be entitled to distributionsreimbursement.