Common use of Basis Risk Shortfall Reserve Fund Clause in Contracts

Basis Risk Shortfall Reserve Fund. (a) On the Closing Date, the Securities Administrator shall establish and maintain in its name, in trust for the benefit of the Class A Certificates and Class M Certificates, the Basis Risk Shortfall Reserve Fund. (b) On each Distribution Date, the Securities Administrator shall transfer from the Certificate Account to the Basis Risk Shortfall Reserve Fund the amounts specified pursuant to Sections 4.01(c)(v) and 4.01(g)(5). On each Distribution Date, to the extent required, the Securities Administrator shall make withdrawals from the Basis Risk Shortfall Reserve Fund and use the amounts in the Basis Risk Shortfall Reserve Fund to make distributions to the Class A Certificates and Class M Certificates in an amount equal to the amount of any Basis Risk Shortfall Carry-Forward Amount on such Certificates. Any such amounts from the Net Monthly Excess Cashflow shall be distributed first, concurrently to the Class I-APT, Class I-A1A, Class I-A1B, Class I-A1C, Class I-A1D, Class I-A2, Class II-A1A, Class II-A1B, Class II-A1C, Class II-A1D1, Class II-A1D2 and Class II-AN Certificates, and second, sequentially to the Class X-0, Xxxxx X-0, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9 and Class M-10 Certificates, in that order, in each case until the related Basis Risk Shortfall Carry-Forward Amount has been reduced to zero. Any such amounts transferred shall be treated for federal tax purposes as amounts distributed by REMIC 3 to the Holder of the Class C Certificates. On each Distribution Date, after the distributions described in the preceding sentence, the Securities Administrator shall withdraw from the Basis Risk Shortfall Reserve Fund (to the extent of funds available on deposit therein) any remaining amounts and distribute them to the Holders of the Class C Certificates, not in respect of any REMIC. (c) The Basis Risk Shortfall Reserve Fund shall be an Eligible Account. Amounts held in the Basis Risk Shortfall Reserve Fund from time to time shall continue to constitute assets of the Trust Fund, but not of the REMICs, until released from the Basis Risk Shortfall Reserve Fund pursuant to this Section 4.08. The Basis Risk Shortfall Reserve Fund constitutes an “outside reserve fund” within the meaning of Treasury Regulation § 1.860G-2(h) and is not an asset of any REMIC. The Holders of the Class C Certificates shall be the owner of the Basis Risk Shortfall Reserve Fund. The Securities Administrator shall keep records that accurately reflect the funds on deposit in the Basis Risk Shortfall Reserve Fund. The Securities Administrator shall, at the written direction of the holder of the Majority Class C Certificateholder, invest amounts on deposit in the Basis Risk Shortfall Reserve Fund in Permitted Investments. In the absence of written direction to the Securities Administrator from the Majority Class C Certificateholder, all funds in the Basis Risk Shortfall Reserve Fund shall remain uninvested. On each Distribution Date, the Securities Administrator shall distribute, not in respect of any REMIC, any interest earned on the Basis Risk Shortfall Reserve Fund to the Holders of the Class C Certificates. (d) For federal tax return and information reporting, the right of the Holders of the Class A Certificates and the Class M Certificates to receive payments from the Basis Risk Shortfall Reserve Fund in respect of any Basis Risk Shortfall Carry-Forward Amount may have more than a de minimis value.

Basis Risk Shortfall Reserve Fund. (a) On the Closing Date, the Securities Administrator The Trustee shall establish and maintain in its name, in trust for the benefit of the Class A Certificates and Class M Certificates, the Basis Risk Shortfall Reserve Fund. (b) On each Distribution Date, the Securities Administrator shall transfer from the Certificate Account to the a Basis Risk Shortfall Reserve Fund on behalf of the amounts specified pursuant to Sections 4.01(c)(v) and 4.01(g)(5holders of the Publicly Offered Certificates (other than the Group 1 Certificates). On each Distribution Date, to the extent required, the Securities Administrator shall make withdrawals from the Basis The Basic Risk Shortfall Reserve Fund and use the amounts in the Basis Risk Shortfall Reserve Fund to make distributions to the Class A Certificates and Class M Certificates in must be an amount equal to the amount of any Basis Risk Shortfall Carry-Forward Amount on such CertificatesEligible Account. Any such amounts from the Net Monthly Excess Cashflow shall be distributed first, concurrently to the Class I-APT, Class I-A1A, Class I-A1B, Class I-A1C, Class I-A1D, Class I-A2, Class II-A1A, Class II-A1B, Class II-A1C, Class II-A1D1, Class II-A1D2 and Class II-AN Certificates, and second, sequentially to the Class X-0, Xxxxx X-0, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9 and Class M-10 Certificates, in that order, in each case until the related Basis Risk Shortfall Carry-Forward Amount has been reduced to zero. Any such amounts transferred shall be treated for federal tax purposes as amounts distributed by REMIC 3 to the Holder of the Class C Certificates. On each Distribution Date, after the distributions described in the preceding sentence, the Securities Administrator shall withdraw from the Basis Risk Shortfall Reserve Fund (to the extent of funds available on deposit therein) any remaining amounts and distribute them to the Holders of the Class C Certificates, not in respect of any REMIC. (c) The Basis Risk Shortfall Reserve Fund shall be an Eligible Accountentitled "Basis Risk Shortfall Reserve Fund, JPMorgan Chase Bank, N.A., as Trustee for the benefit of holders of Nomura Asset Acceptance Corporation, Mortgage Pass-Through Certificates, Series 2004-AR3, Class II-A, Class III-A-1, Class III-A-2, Class III-A-3, Class III-A-4, Class III-A-5, Class M-1, Class M-2, Class M-3 and Class M-4". Amounts held in Any payments received by the Trustee under the Cap Contracts shall be deposited into the Basis Risk Shortfall Reserve Fund from time to time shall continue to constitute assets for the benefit of the Trust Fund, but not Class II-A Certificates and Class III-A-2 Certificates; provided that the amount of any Excess Cap Payments shall be held for the benefit of the REMICsClass X Certificates and payable as part of the Class X Distribution Amount for the related Distribution Date. On each Distribution Date as to which there is a Basis Risk Shortfall payable to any Class of Certificates, until released from the Trustee shall deposit the amounts pursuant to paragraphs 7, 8, 9, 10 and 11 of Section 5.06(iii) into the Basis Risk Shortfall Reserve Fund pursuant to this Section 4.08. The Basis Risk Shortfall Reserve Fund constitutes an “outside reserve fund” within and the meaning of Treasury Regulation § 1.860G-2(h) and is not an asset of any REMIC. The Holders of Trustee has been directed by the Class C Certificates shall be the owner of the Basis Risk Shortfall Reserve Fund. The Securities Administrator shall keep records that accurately reflect the funds on deposit in the Basis Risk Shortfall Reserve Fund. The Securities Administrator shall, at the written direction of the holder of the Majority Class C Certificateholder, invest X Certificateholder to distribute such amounts on deposit in the Basis Risk Shortfall Reserve Fund in Permitted Investments. In the absence of written direction to the Securities Administrator from the Majority Class C Certificateholder, all funds in the Basis Risk Shortfall Reserve Fund shall remain uninvested. On each Distribution Date, the Securities Administrator shall distribute, not in respect of any REMIC, any interest earned on the Basis Risk Shortfall Reserve Fund to the Holders of the Class C Publicly Offered Certificates (other than the Group I Certificates. (d) For federal tax return and information reporting, the right of the Holders of the Class A Certificates and the Class M III-A-4 Certificates to receive payments from in the Basis Risk Shortfall Reserve Fund amounts and priorities set forth in respect of any Basis Risk Shortfall Carry-Forward Amount may have more than a de minimis valueSection 5.06(iii).

Basis Risk Shortfall Reserve Fund. (a) On the Closing Date, the Securities Administrator shall establish and maintain in its name, in trust for the benefit of the Class A Certificates Group III-A, Group III-B and Class 3-M Certificates, the Basis Risk Shortfall Reserve Fund. (b) . On each Distribution Date, the Securities Administrator shall transfer from the Certificate Distribution Account to the Basis Risk Shortfall Reserve Fund the amounts specified pursuant to Sections 4.01(c)(v4.01(c)(iv) and 4.01(g)(5). On each Distribution Date, to the extent required, the Securities Administrator shall make withdrawals from the Basis Risk Shortfall Reserve Fund and use the amounts in the Basis Risk Shortfall Reserve Fund to make distributions to the Class A Certificates Group III-A, Group III-B and Class 3-M Certificates in an amount equal to the amount of any Basis Risk Shortfall Carry-Forward Amount on such Certificates. Any such amounts from the With respect to any Distribution Date, any Net Monthly Excess Cashflow for the Mortgage Loans in Loan Group III-A and Loan Group III-B shall be distributed firstpaid as follows, concurrently in each case to the extent of remaining Net Monthly Excess Cashflow: (1) To make payments in respect of the Overcollateralization Increase Amount, which shall be included in the Principal Distribution Amount and allocated as provided above; (2) to the holders of the Class I3-APTA-1-2 Certificates and Class 3-A-2-2 Certificates, pro rata based on amounts due, any Allocated Realized Loss Amounts for each such Class; (3) to the holders of the Class 3-M-1, Class I3-A1AM-2, Class I3-A1B, Class I-A1C, Class I-A1D, Class I-A2, Class II-A1A, Class II-A1B, Class II-A1C, Class II-A1D1, Class II-A1D2 M-3 and Class II3-AN Certificates, and second, sequentially to the Class X-0, Xxxxx X-0, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9 and Class M-10 M-4 Certificates, in that order, in each case until any Allocated Realized Loss Amounts for such Classes; (4) to the related holders of the Class 3-A-1-1, Class 3-A-1-2, Class 3-A-2-1 and Class 3-A-2-2 Certificates, pro rata based on amounts due, any Basis Risk Shortfall Carry-Forward Amount has been reduced for such Class; (5) to zerothe holders of the Class 3-M-1, Class 3-M-2, Class 3-M-3 and Class 3-M-4 Certificates, in that order, any Basis Risk Shortfall Carry-Forward Amount for such Class; (6) to the holders of the Class 3-X Certificates, the amount distributable thereon pursuant to the Agreement; and (7) to the Class R-II Certificates or Class R-I Certificates, any remaining amount, as appropriate. Any such amounts transferred shall be treated for federal tax purposes as amounts distributed by REMIC 3 2-B to the Holder of the Class C 3-X Certificates. On each Distribution Date, after the distributions described in the preceding sentence, the Securities Administrator shall withdraw from the Basis Risk Shortfall Reserve Fund (to the extent of funds available on deposit therein) any remaining amounts and distribute them to the Holders of the Class C 3-X Certificates, not in respect of any REMIC. (cb) The Basis Risk Shortfall Reserve Fund shall be an Eligible Account. Amounts held in the Basis Risk Shortfall Reserve Fund from time to time shall continue to constitute assets of the Trust Fund, but not of the REMICs, until released from the Basis Risk Shortfall Reserve Fund pursuant to this Section 4.08. The Basis Risk Shortfall Reserve Fund constitutes an “outside reserve fund” within the meaning of Treasury Regulation § 1.860G-2(h) and is not an asset of any REMIC. The Holders of the Class C 3-X Certificates shall be the owner of the Basis Risk Shortfall Reserve Fund. The Securities Administrator shall keep records that accurately reflect the funds on deposit in the Basis Risk Shortfall Reserve Fund. The Securities Administrator shall, at the written direction of the holder of the Majority Class C 3-X Certificateholder, invest amounts on deposit in the Basis Risk Shortfall Reserve Fund in Permitted Investments. In the absence of written direction to the Securities Administrator from the Majority Class C 3-X Certificateholder, all funds in the Basis Risk Shortfall Reserve Fund shall remain uninvested. On each Distribution Date, the Securities Administrator shall distribute, not in respect of any REMIC, any interest earned on the Basis Risk Shortfall Reserve Fund to the Holders of the Class C 3-X Certificates. (dc) For federal tax return and information reporting, the right of the Holders of the Group III-A, Group III-B and Class A Certificates and the Class 3-M Certificates to receive payments from the Basis Risk Shortfall Reserve Fund in respect of any Basis Risk Shortfall Carry-Forward Amount may have more than a de minimis value.

Basis Risk Shortfall Reserve Fund. (a) On the Closing Date, the Securities Administrator shall establish and maintain in its name, in trust for the benefit of the Class A Certificates and Class M Certificates, the Basis Risk Shortfall Reserve Fund. (b) On each Distribution Date, the Securities Administrator shall transfer from the Certificate Account to the Basis Risk Shortfall Reserve Fund the amounts specified pursuant to Sections 4.01(c)(v4.01(c)(iv), 4.01(g)(2) and 4.01(g)(54.01(h). On each Distribution Date, to the extent required, the Securities Administrator shall make withdrawals from the Basis Risk Shortfall Reserve Fund and use the amounts in the Basis Risk Shortfall Reserve Fund to make distributions to the Class A Certificates and Class M Certificates in an amount equal to the amount of any Basis Risk Shortfall Carry-Forward Amount on such Certificates. Any such amounts from the Net Monthly Excess Cashflow shall be distributed first, concurrently to the Class I-APT, Class I-A1A, Class I-A1B, Class I-A1CA1C1, Class I-A1D, Class I-A2A1C2, Class II-A1AAPT, Class II-A1B, Class II-A1C, Class II-A1D1, Class II-A1D2 A1 and Class II-AN A2 Certificates, and second, sequentially to the Class X-0, Xxxxx X-0, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9 and Class M-10 Certificates, in that order, in each case until the related Basis Risk Shortfall Carry-Forward Amount has been reduced to zero. Any such amounts transferred shall be treated for federal tax purposes as amounts distributed by REMIC 3 to the Holder of the Class C Certificates. On each Distribution Date, after the distributions described in the preceding sentence, the Securities Administrator shall withdraw from the Basis Risk Shortfall Reserve Fund (to the extent of funds available on deposit therein) any remaining amounts and distribute them to the Holders of the Class C Certificates, not in respect of any REMIC. (c) The Basis Risk Shortfall Reserve Fund shall be an Eligible Account. Amounts held in the Basis Risk Shortfall Reserve Fund from time to time shall continue to constitute assets of the Trust Fund, but not of the REMICs, until released from the Basis Risk Shortfall Reserve Fund pursuant to this Section 4.08. The Basis Risk Shortfall Reserve Fund constitutes an “outside reserve fund” within the meaning of Treasury Regulation § 1.860G-2(h) and is not an asset of any REMIC. The Holders of the Class C Certificates shall be the owner of the Basis Risk Shortfall Reserve Fund. The Securities Administrator shall keep records that accurately reflect the funds on deposit in the Basis Risk Shortfall Reserve Fund. The Securities Administrator shall, at the written direction of the holder of the Majority Class C Certificateholder, invest amounts on deposit in the Basis Risk Shortfall Reserve Fund in Permitted Investments. In the absence of written direction to the Securities Administrator from the Majority Class C Certificateholder, all funds in the Basis Risk Shortfall Reserve Fund shall remain uninvested. On each Distribution Date, the Securities Administrator shall distribute, not in respect of any REMIC, any interest earned on the Basis Risk Shortfall Reserve Fund to the Holders of the Class C Certificates. (d) For federal tax return and information reporting, the right of the Holders of the Class A Certificates and the Class M Certificates to receive payments from the Basis Risk Shortfall Reserve Fund in respect of any Basis Risk Shortfall Carry-Forward Amount may have more than a de minimis value.

Basis Risk Shortfall Reserve Fund. (a) On the Closing Date, the Securities Administrator shall establish and maintain in its name, in trust for the benefit of the Class A Certificates and Class M Offered Certificates, the Basis Risk Shortfall Reserve Fund. (b) On each Distribution Date, the Securities Administrator shall transfer from the Certificate Account to the Basis Risk Shortfall Reserve Fund the amounts specified pursuant to Sections 4.01(c)(v4.01(c)(iv) and 4.01(g)(5(f)(1). On each Distribution Date, to the extent required, the Securities Administrator shall make withdrawals from the Basis Risk Shortfall Reserve Fund and use the amounts in the Basis Risk Shortfall Reserve Fund to make distributions to the Class A Certificates and Class M Offered Certificates in an amount equal to the amount of any Basis Risk Shortfall Carry-Forward Amount on such Certificates. Any such amounts from the Net Monthly Excess Cashflow shall be distributed first, concurrently to the Class I-APT, Class I-A1A, Class I-A1B, Class I-A1C, Class I-A1D, Class I-A2, Class II-A1A, Class II-A1B, Class II-A1C, Class II-A1D1, Class II-A1D2 A-1 and Class II-AN A-2 Certificates, and second, sequentially to the Class X-0, Xxxxx X-0, Class M-3, Class M-4, Class M-5M- 5, Class M-6, Class M-7, Class M-8, Class M-9 M-7 and Class M-10 M-8 Certificates, in that order, in each case until the related Basis Risk Shortfall Carry-Forward Amount has been reduced to zero. Any such amounts transferred shall be treated for federal tax purposes as amounts distributed by REMIC 3 2 to the Holder Holders of the Class C Certificates. On each the 30th Distribution Date, after the distributions described in the preceding sentence, the Securities Administrator shall withdraw from the Basis Risk Shortfall Reserve Fund (to the extent of funds available on deposit therein) any remaining amounts and distribute them to the Holders of the Class C Certificates, not in respect of any REMIC. (c) The Basis Risk Shortfall Reserve Fund shall be an Eligible Account. Amounts held in the Basis Risk Shortfall Reserve Fund from time to time shall continue to constitute assets of the Trust Fund, but not of the REMICs, until released from the Basis Risk Shortfall Reserve Fund pursuant to this Section 4.08. The Basis Risk Shortfall Reserve Fund constitutes an “outside reserve fund” within the meaning of Treasury Regulation § 1.860G-2(h) and is not an asset of any REMIC. The Holders of the Class C Certificates shall be the owner of the Basis Risk Shortfall Reserve Fund. The Securities Administrator shall keep records that accurately reflect the funds on deposit in the Basis Risk Shortfall Reserve Fund. The Securities Administrator shall, at the written direction of the holder of the Majority Class C Certificateholder, invest amounts on deposit in the Basis Risk Shortfall Reserve Fund in Permitted Investments. In the absence of written direction to the Securities Administrator from the Majority Class C Certificateholder, all funds in the Basis Risk Shortfall Reserve Fund shall remain uninvested. On each Distribution Date, the Securities Administrator shall distribute, not in respect of any REMIC, any interest earned on the Basis Risk Shortfall Reserve Fund to the Holders of the Class C Certificates4. (d) For federal tax return and information reporting, the right of the Holders of the Class A Certificates and the Class M Certificates to receive payments from the Basis Risk Shortfall Reserve Fund in respect of any Basis Risk Shortfall Carry-Forward Amount may have more than a de minimis value.