Common use of Allocation of Realized Losses and Subsequent Recoveries Clause in Contracts

Allocation of Realized Losses and Subsequent Recoveries. Any Realized Losses with respect to the Mortgage Loans shall be applied on each Distribution Date after the distributions provided for in Section 5.04 in reduction of the Certificate Principal Balance of the Class or Classes of Certificates as provided in the definition of Allocated Realized Loss Amount. Any amounts distributed to a Class of Certificates (other than the Class B-IO Certificates and the Residual Certificates) in respect of any Unpaid Allocated Realized Loss Amount will not be applied to reduce the Certificate Principal Balance of such Class. If the Master Servicer receives a Subsequent Recovery in a Prepayment Period, it will be distributed on the following Distribution Date in accordance with the priorities described under Section 5.04(a)(ii)(A). Additionally, the Certificate Principal Balance of each Class of Certificates (other than the Class B-IO Certificates and the Residual Certificates) that had been reduced by the allocation of a Realized Loss will be increased, in order of seniority, by the amount of such Subsequent Recovery, but not in excess of the Unpaid Allocated Realized Loss Amount for such Class immediately prior to that Distribution Date. Holders of such Certificates will not be entitled to any payment in respect of Interest Distribution Amounts on the amount of such increases for an Interest Accrual Period preceding the Distribution Date on which such increase occurs.

Allocation of Realized Losses and Subsequent Recoveries. Any Realized Losses with respect to the Mortgage Loans shall be applied on each Distribution Date after the distributions provided for in Section 5.04 in reduction of the Certificate Principal Balance of the Class or Classes of Subordinated Certificates as provided in the definition of Allocated Realized Loss Amount. Any amounts distributed to a Class of Subordinated Certificates (other than the Class B-IO Certificates and the Residual Certificates) in respect of any Unpaid Allocated Realized Loss Amount will not be applied to reduce the Certificate Principal Balance of such ClassClass of Certificates. If the Master Servicer receives a Subsequent Recovery in a Prepayment Period, it will be distributed to the Subordinated Certificates on the following Distribution Date in accordance with the priorities described under Section 5.04(a)(ii)(A). Additionally, the Certificate Principal Balance of each Class of Subordinated Certificates (other than the Class B-IO Certificates and the Residual Certificates) that had has been reduced by the allocation of a Realized Loss to such Class of Certificates will be increased, in order of senioritytheir payment priority, by the amount of such Subsequent Recovery, commencing with the Class M-1 Certificates, but not in excess of the Unpaid Allocated Realized Loss Amount for such Class of Certificates immediately prior to that Distribution Date. Holders of such Class of Subordinated Certificates will not be entitled to any payment in respect of Interest Distribution Amounts interest on the amount of such increases to the related Certificate Principal Balance for an Interest Accrual Period preceding the Distribution Date on which such increase occurs.