Defeasance and Mortgaged Property Substitution. Whenever, in accordance with the Mortgage Documents or as otherwise permitted hereunder, a Borrower substitutes a new lien on one or more Mortgaged Properties or other collateral for the lien previously delivered on one or more different Mortgaged Properties, the documents required under the related Servicing Contract or the Guide with respect to the lien on the substituted Mortgaged Properties or other collateral will be delivered to and held by the Trustee or a Custodian in accordance with the terms of the Servicing Contract or the Guide. In the case of Defeasance by delivery of Defeasance Securities consisting of certificated Defeasance Securities, the certificates representing the securities will be pledged to the Trustee or Custodian. In the case of Defeasance by delivery of Defeasance Securities consisting of uncertificated Defeasance Securities, the securities will be held in the name of or for the benefit of the Trustee. In the event a REMIC election is made with respect to all or a part of the assets of the Trust Fund of any Trust, Defeasance will be permitted only to the extent that it does not adversely affect the status of such assets as a REMIC for federal tax purposes.
Defeasance and Mortgaged Property Substitution. Whenever, in accordance with the Mortgage Documents, a Borrower substitutes a new lien on one or more Mortgaged Properties or other collateral for the lien previously delivered on one or more different Mortgaged Properties, the documents described in paragraph (b) of Subsection 3.4(1) with respect to the lien on the substituted Mortgaged Properties or other collateral will be delivered to and held by the Trustee or a Custodian in accordance with the terms of that paragraph. In the case of Defeasance by delivery of Defeasance Securities consisting of certificated Defeasance Securities, the certificates representing the securities will be pledged to the Trustee or Custodian. In the case of Defeasance by delivery of Defeasance Securities consisting of uncertificated Defeasance Securities, the securities will be held in the name of or for the benefit of the Trustee.
