Common use of Cap Contract Clause in Contracts

Cap Contract. No later than the Closing Date, the Securities Administrator shall establish and maintain with itself, as agent for the Trustee, on behalf of the Supplement Interest Trust, a separate, segregated trust account (the “Cap Account”) titled, “Xxxxx Fargo Bank, N.A. as Securities Administrator, in trust for the registered holders of Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series 2006-AR2, Mortgage Pass-Through Certificates—Cap Account”. Such account shall be an Eligible Account and amounts therein shall be held uninvested. For federal and state income tax purposes, the Class CE Certificateholders shall be deemed to be the owners of the Cap Account. The Cap Account shall be an “outside reserve fund” within the meaning of Treasury Regulation Section 1.860G-2(h). Upon the termination of the Trust, or the payment in full of the Class A Certificate and the Subordinate Certificates, all amounts remaining on deposit in the Cap Account shall be released by the Trust and distributed to the Class CE Certificateholders. The Cap Account shall be part of the Trust but not part of any REMIC and any payments to the holders of the Class A Certificates and the Subordinate Certificates from the Cap Account shall not be payments with respect to a “regular interest” in a REMIC within the meaning of Code Section 860G(a)(1). Upon receipt of any amounts paid under the Cap Contract, and following any distributions of Net Monthly Excess Cashflow pursuant to Section 4.1(a)(iii) above, the Securities Administrator shall deposit such amounts into the Cap Account for distribution pursuant to Section 4.1(a)(vi) above.

Cap Contract. No later than the Closing Date, the Securities Trust Administrator shall establish and maintain with itself, as agent for the Trustee, on behalf of the Supplement Interest Trust, a separate, segregated trust account (the “Cap Account”) titled, “Xxxxx Fargo Bank, N.A. as Securities AdministratorTrustee, in trust for the registered holders of Deutsche AltMASTR Adjustable Rate Mortgages Trust 2005-A Securities, Inc. Mortgage Loan Trust, Series 2006-AR28, Mortgage Pass-Through Certificates, Series 2005-8—Cap Account” (the “Cap Account”). Such account shall be an Eligible Account and amounts therein shall be held uninvested. For federal and state income tax purposes, the Class CE C Certificateholders shall be deemed to be the owners of the Cap Account. The Cap Account shall be an “outside reserve fund” within the meaning of Treasury Regulation Section 1.860G-2(h). Upon the termination of the Trust, or the payment in full of the Class A Certificate Senior and the Subordinate Certificates, all amounts remaining on deposit in the Cap Account shall be released by the Trust and distributed to the Class CE C Certificateholders. The Cap Account shall be part of the Trust but not part of any REMIC and any payments to the holders Holders of the Class A Senior Certificates and the Subordinate Certificates from the Cap Account shall not be payments with respect to a “regular interest” in a REMIC within the meaning of Code Section 860G(a)(1). A separate trust is hereby established (the “Excess Cap Amount Trust”), the corpus of which shall be held by the Trust Administrator, in trust, for the benefit of the holders of the Class C Certificates. The Excess Cap Amount Trust will not be a part of any REMIC created hereby. On each Distribution Date on which there is a payment received under the Cap Contract that is based on a notional amount in excess of the Class Principal Amount of the Group 1 Certificates, the Group 2 Certificates and the Subordinate Certificates (such amount, the “Excess Cap Amount”), the Trust Administrator shall not treat such payments as amounts on deposit in the Cap Account for purposes of determining the amount in the Cap Account for any Distribution Date. Any such Excess Cap Amount shall not be an asset of the Trust and, instead, shall be paid into and distributed out of the Excess Cap Amount Trust, and the Trust Administrator shall distribute such amount to the Class C Certificateholders. On each Distribution Date, the Trust Administrator shall distribute in the order of priority and to the extent specified pursuant to this section 4.10 the sum of (without duplication) (a) any payments made by the Cap Counterparty to the Trust for such Distribution Date with respect to the Cap Contract and (b) any amounts then on deposit in the Cap Account, including any earnings thereon in respect of the Cap Contract. On any Distribution Date, any amounts that the Trust Administrator is not required to distribute from the Cap Account pursuant to this Section 4.10 shall remain on deposit in the Cap Account. Upon receipt of any amounts paid under the Cap Contract, and following any distributions of Net Monthly Excess Cashflow pursuant to Section 4.1(a)(iii) above4.01(b), and withdrawals from the Swap Account, the Securities Trust Administrator shall deposit such amounts into the Cap Account for distribution pursuant as follows: (1) first, concurrently, to Section 4.1(a)(vithe Senior Certificates, the related Monthly Interest Distributable Amount and Unpaid Interest Shortfall Amount remaining undistributed after the distribution of the Interest Remittance Amount, withdrawals from the Swap Account and withdrawals from the Net WAC Rate Carryover Account; (2) abovesecond, sequentially, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 certificates, in that order, the related Monthly Interest Distributable Amount and Unpaid Interest Shortfall Amount, to the extent remaining undistributed after the distributions of the Interest Remittance Amount, the Net Monthly Excess Cashflow, withdrawals from the Swap Account and withdrawals from the Net WAC Rate Carryover Account; (3) third, to the holders of the class or classes of Certificates then entitled to receive distributions in respect of principal, in an amount necessary to maintain the applicable Overcollateralization Target Amount after taking into account distributions made with respect thereto from the Net Monthly Excess Cashflow, withdrawals from the Swap Account and withdrawals from the Net WAC Rate Carryover Account; (4) fourth, sequentially (x) first, concurrently, to the Senior Certificates, pro rata, and (y) second, sequentially, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 certificates, in that order, in each case up to the related Allocated Realized Loss Amount related to such Certificates for such Distribution Date remaining undistributed after distribution of the Net Monthly Excess Cashflow, withdrawals from the Swap Account and withdrawals from the Net WAC Rate Carryover Account; (5) fifth, to the Senior Certificates (other than the Class 3-A-1 and Class 3-A-2 certificates) and Subordinate Certificates, pro rata, the related Net WAC Rate Carryover Amount, to the extent remaining undistributed after withdrawals from the Swap Account and withdrawals from the Net WAC Rate Carryover Account; and (6) sixth, to the Class C Certificates, any remaining amount.