Distributions on the Group I Certificates. (a) On each Distribution Date, with respect to Loan Group I, an amount equal to the Interest Funds and Principal Funds for such Distribution Date shall be withdrawn by the Securities Administrator from the Distribution Account in respect of Loan Group I to the extent of funds on deposit therein and distributed in the following order of priority: First, Interest Funds will be distributed, in the following manner and order of priority: 1. From Interest Funds, to the Class I-A-1 Certificates and Class I-A-2 Certificates, the Current Interest and then any Interest Carry Forward Amount for each such Class, on a pro rata basis, based on the Current Interest and Interest Carry Forward Amount owed to each such Class; 2. From remaining Interest Funds, to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, sequentially, in that order, the Current Interest for each such Class; 3. Any Excess Spread, to the extent necessary to cause the Overcollateralization Amount to equal to the Overcollateralization Target Amount, will be the Extra Principal Distribution Amount and will be included as part of the Principal Distribution Amount and distributed in accordance with second (A) and (B) below; and 4. Any Remaining Excess Spread will be applied, together with the Overcollateralization Release Amount, as Excess Cashflow pursuant to clauses Third through Thirteenth below. On any Distribution Date, any shortfalls resulting from the application of the Relief Act and any Prepayment Interest Shortfalls to the extent not covered by Compensating Interest Payments will be allocated as set forth in the definition of Current Interest herein. Second, to pay as principal on the Certificates entitled to payments of principal, in the following order of priority: (A) For each Distribution Date (i) prior to the Stepdown Date or (ii) on which a Trigger Event is in effect, from Principal Funds and the Extra Principal Distribution Amount for such Distribution Date: 1. To the Class I-A-1 Certificates and Class I-A-2 Certificates, on a pro rata basis in accordance with their respective Certificate Principal Balances, an amount equal to the Principal Distribution Amount until the Certificate Principal Balance of each such Class is reduced to zero; 2. To the Class I-M-1 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero; 3. To the Class I-M-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero; 4. To the Class I-B-1 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero; 5. To the Class I-B-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero; and 6. To the Class I-B-3 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero. (B) For each Distribution Date on or after the Stepdown Date, so long as a Trigger Event is not in effect, from Principal Funds and the Extra Principal Distribution Amount for such Distribution Date: 1. To the Class I-A-1 Certificates and Class I-A-2 Certificates, from the Principal Distribution Amount, an amount equal to the Class I-A Principal Distribution Amount will be distributed pro rata between the Class I-A-1 Certificates and the Class I-A-2 Certificates in accordance with their respective Certificate Principal Balances, until the Certificate Principal Balance of each such Class is reduced to zero; 2. To the Class I-M-1 Certificates, from any remaining Principal Distribution Amount, the Class I-M-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; 3. To the Class I-M-2 Certificates, from any remaining Principal Distribution Amount, the Class I-M-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; 4. To the Class I-B-1 Certificates, from any remaining Principal Distribution Amount, the Class I-B-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; 5. To the Class I-B-2 Certificates, from any remaining Principal Distribution Amount, the Class I-B-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; and 6. To the Class I-B-3 Certificates, from any remaining Principal Distribution Amount, the Class I-B-3 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero. Third, from any remaining Excess Cashflow, the following amounts to each Class of Class I-A Certificates, on a pro rata basis in accordance with the respective amounts owed to each such Class: (a) any Interest Carry Forward Amount to the extent not paid pursuant to clause First 1 above and then (b) any Unpaid Realized Loss Amount, in each case for each such Class for such Distribution Date; Fourth, from any remaining Excess Cashflow, the following amounts to the Class I-M-1 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Fifth, from any remaining Excess Cashflow, the following amounts to the Class I-M-2 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Sixth, from any remaining Excess Cashflow, the following amounts to the Class I-B-1 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Seventh, from any remaining Excess Cashflow, the following amounts to the Class I-B-2 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Eighth, from any remaining Excess Cashflow, the following amounts to the Class I-B-3 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Ninth, from any remaining Excess Cashflow, to each Class of Class I-A Certificates, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts) for each such Class for such Distribution Date, pro rata, based on the Basis Risk Shortfall and Basis Risk Shortfall Carry Forward Amount owed to each such Class (any such amounts being first deposited to, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); Tenth, from any remaining Excess Cashflow, to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, in that order, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts), in each case for such Class for such Distribution Date (any such amounts being first deposited to, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); Eleventh, from any remaining Excess Cashflow, to the Class B-IO Certificates, the Class B-IO Distribution Amount for such Distribution Date; Twelfth, from any remaining Excess Cashflow, to the Class B-IO Certificates, any unreimbursed Class B-IO Advances; and Thirteenth, any remaining amounts to the Residual Certificates. All payments of amounts in respect of Basis Risk Shortfalls or Basis Risk Shortfall Carryforward Amounts made pursuant to the provisions of this paragraph (a) shall, for federal income tax purposes, be deemed to have been distributed from REMIC V to the holders of the Class B-IO Certificates, and then paid outside of any 2006-8 REMIC to the recipients thereof pursuant to an interest rate cap contract. By accepting their Certificates the holders of the Certificates agree so to treat such payments for purposes of filing their income tax returns. (b) On each Distribution Date, the related Cap Contract Payment Amount with respect to such Payment Date shall be distributed in the following order of priority, in each case to the extent of amounts available: (i) first, to the holders of the related Class or Classes of Certificates, the payment of any Basis Risk Shortfall Carry Forward Amount for such Distribution Date; (ii) second, from any remaining amounts, the payment of an amount equal to any Current Interest and Interest Carry Forward Amount for the related Class or Classes of Certificates to the extent not covered by Interest Funds or Excess Cashflow on such Distribution Date; (iii) third, from any remaining amounts available from the Cap Contract relating to the Group I Offered Certificates and the Class I-B-3 Certificates, first to the Class I-A-1 Certificates and the Class I-A-2 Certificates, pro rata, and then to the Class I-M-1, the Class I-M-2, the Class I-B-1, the Class I-B-2 and the Class I-B-3 Certificates, in that order, to the extent not paid pursuant to clauses (i) or (ii) above; and (iv) fourth, to the Class B-IO Certificates, any remaining amount. On each Distribution Date, amounts on deposit in the Reserve Fund held for the benefit of the Group I Offered Certificates and the Class I-B-3 Certificates will be allocated first to the Class I-A Certificates, pro rata, based on the current Realized Losses and any Unpaid Realized Loss Amount for each such Class for such Distribution Date, and then to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, in that order, to pay any current Realized Losses and any Unpaid Realized Loss Amount, in each case, for such Class and for such Distribution Date to the extent not covered by Excess Cashflow on such Distribution Date. All Cap Contract Payment Amounts made with respect to Current Interest and Interest Carry Forward Amounts will be treated, for federal income tax purposes, as reimburseable advances ("Class B-IO Advances") made from the holder of the Class B-IO Certificates. Such Class B-IO Advances will be paid back to the holder of the Class B-IO Certificate pursuant to Section 6.01(a). (c) On each Distribution Date, all amounts transferred from the Class XP Reserve Account representing Prepayment Charges in respect of the Prepayment Charge Loans received during the related Prepayment Period will be withdrawn from the Distribution Account and distributed by the Securities Administrator to the Holders of the related Class XP Certificates and shall not be available for distribution to the Holders of any other Class of Certificates. (d) The expenses and fees of the Trust shall be paid by each of the 2006-8 REMICs, to the extent that such expenses relate to the assets of each of such respective 2006-8 REMICs, and all other expenses and fees of the Trust shall be paid pro rata by each of the 2006-8 REMICs.
Appears in 2 contracts
Samples: Pooling and Servicing Agreement (Bear Stearns Alt-a Trust 2006-8), Pooling and Servicing Agreement (Bear Stearns Alt-a Trust 2006-8)
Distributions on the Group I Certificates. (ai) On each Distribution Date, with respect to Loan the Group I, an amount equal I Available Funds will be distributed to the Group I Senior Certificates as follows: fifth, to the Class I-PO Certificates, the portion of the Class I-PO Certificate Deferred Amount, provided that (i) on any Distribution Date, distributions pursuant to this priority fifth shall not exceed the excess, if any, of (x) Group I Available Funds remaining after giving effect to distributions pursuant to priority first through fourth above over (y) the sum of the amount of Accrued Certificate Interest Funds and Principal Funds for such Distribution Date and Accrued Certificate Interest remaining undistributed from previous Distribution Dates on all Classes of Group I Subordinate Certificates then outstanding, (ii) such distributions shall not reduce the Current Principal Amount of the Class I-PO Certificates, and (iii) no distribution will be withdrawn by the Securities Administrator from the Distribution Account made in respect of Loan the Class I-PO Certificate Deferred Amount on or after the Group I Cross-Over Date. On each Distribution Date, an amount, up to the extent amount of funds on deposit therein and the Group I Senior Optimal Principal Amount for that Distribution Date, will be distributed as principal in the following order of priority: First:
A. to the Class I-R-1 Certificates and the Class I-R-2 Certificates, Interest Funds will be distributedpro rata, in reduction of the following manner and order of priority:Current Principal Amounts thereof, until the Current Principal Amounts thereof have been reduced to zero; and
1. From Interest Funds, B. to the Class I-A-1 Certificates and Certificates, Class I-A-2 CertificatesCertificates and each combination of Exchanged Certificates (as further allocated in clause (iv) below), the Current Interest and then any Interest Carry Forward Amount for each such Class, concurrently on a pro rata basis, based on the Current Interest and Interest Carry Forward Amount owed Principal Amounts thereof, until the Current Principal Amounts thereof have been reduced to zero.
(ii) On each such Class;
2. From Distribution Date on or prior to the Group I Cross-Over Date, an amount equal to the remaining Interest FundsGroup I Available Funds after the distributions in clause (i) above shall be distributed sequentially in the following order, to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 B-2, Class I-B-3, Class I-B-4, Class I-B-5 and Class I-B-3 B-6 Certificates, sequentiallyin each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class’s Group I Allocable Share for such Distribution Date, in that order, the Current Interest for each such Class;
3. Any Excess Spreadcase, to the extent necessary to cause the Overcollateralization Amount to equal to the Overcollateralization Target Amount, will be the Extra Principal Distribution Amount and will be included as part of the Principal Distribution Amount and distributed in accordance with second remaining Group I Available Funds.
(Aiii) and (B) below; and
4. Any Remaining Excess Spread will be appliedIf, together with the Overcollateralization Release Amount, as Excess Cashflow after distributions have been made pursuant to clauses Third through Thirteenth below. On priorities first and second of clause (i) above on any Distribution Date, any shortfalls resulting from the application remaining Group I Available Funds is less than the Scheduled Principal Balance of the Relief Act Group I Mortgage Loans, such amounts shall be reduced, and any Prepayment Interest Shortfalls such remaining funds will be distributed to the extent not covered by Compensating Interest Payments will be allocated as set forth in the definition of Current Interest herein. Second, to pay as principal on the Group I Senior Certificates entitled to payments of principal, in the following order of priority:
(A) For each Distribution Date (i) prior to the Stepdown Date or (ii) on which a Trigger Event is in effect, from Principal Funds and the Extra Principal Distribution Amount for such Distribution Date:
1. To other than the Class I-A-1 Certificates and Class I-A-2 X Certificates, ) on a pro rata the basis of such reduced amounts. Notwithstanding any reduction in accordance with their respective Certificate Principal Balances, an amount equal to the Principal Distribution Amount until the Certificate Principal Balance of each such Class is reduced to zero;
2. To the Class I-M-1 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
3. To the Class I-M-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
4. To the Class I-B-1 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
5. To the Class I-B-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero; and
6. To the Class I-B-3 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero.
(B) For each Distribution Date on or after the Stepdown Date, so long as a Trigger Event is not in effect, from Principal Funds and the Extra Principal Distribution Amount for such Distribution Date:
1. To the Class I-A-1 Certificates and Class I-A-2 Certificates, from the Principal Distribution Amount, an amount equal principal distributable to the Class I-A Principal Distribution Amount will be distributed pro rata between PO Certificates pursuant to this paragraph, the principal balance of the Class I-A-1 PO Certificates and shall be reduced not only by principal so distributed but also by the Class I-A-2 Certificates in accordance with their respective Certificate Principal Balances, until the Certificate Principal Balance of each such Class is reduced to zero;
2. To the Class I-M-1 Certificates, from any remaining Principal Distribution Amount, the Class I-M-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
3. To the Class I-M-2 Certificates, from any remaining Principal Distribution Amount, the Class I-M-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
4. To the Class I-B-1 Certificates, from any remaining Principal Distribution Amount, the Class I-B-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
5. To the Class I-B-2 Certificates, from any remaining Principal Distribution Amount, the Class I-B-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; and
6. To the Class I-B-3 Certificates, from any remaining Principal Distribution Amount, the Class I-B-3 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero. Third, from any remaining Excess Cashflow, the following amounts to each Class of Class I-A Certificates, on a pro rata basis in accordance with the respective amounts owed to each such Class: difference between (ai) any Interest Carry Forward Amount to the extent not paid pursuant to clause First 1 above and then (b) any Unpaid Realized Loss Amount, in each case for each such Class for such Distribution Date; Fourth, from any remaining Excess Cashflow, the following amounts principal distributable to the Class I-M-1 Certificates: PO Certificates in accordance with priority fourth of clause (ai) any Interest Carry Forward Amount above, and then (bii) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Fifth, from any remaining Excess Cashflow, the following amounts principal actually distributed to the Class I-M-2 Certificates: PO Certificates after giving effect to this paragraph (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case such difference for such Class for such Distribution Date; Sixth, from any remaining Excess Cashflow, the following amounts to the Class I-B-1 PO Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Seventh, from any remaining Excess Cashflow, the following amounts to “Class I-PO Certificate Cash Shortfall”). The Class I-PO Certificate Cash Shortfall for the Class I-B-2 Certificates: (a) PO Certificates with respect to any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Eighth, from any remaining Excess Cashflow, the following amounts Date will be added to the Class I-B-3 Certificates: I- PO Certificate Deferred Amount. NYSCEF (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, Div)OC. InNtOhe.eve8nt8th7at the Exchangeable Certificates are exchanged for their related Exchanged Certificates within a CombinatioRn GErCouEp,IsVucEh DExchNaYngSedCCEeFrti:ficat1es0w/il1l b3e /en2tit0le2d 0 to a proportionate share of the principal distributions of the Exchangeable Certificates in each case for such Class for such Distribution Date; Ninth, from any remaining Excess Cashflow, Combination Group as described in Exhibit C. Such Exchanged Certificates will also be entitled to each Class of Class I-A Certificates, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts) for each such Class for such Distribution Date, pro rata, based on the Basis Risk Shortfall and Basis Risk Shortfall Carry Forward Amount owed to each such Class (any such amounts being first deposited tointerest accrued on, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); Tenth, from any remaining Excess Cashflow, to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, in that order, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts), in each case for such Class for such Distribution Date (any such amounts being first deposited to, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); Eleventh, from any remaining Excess Cashflow, to the Class B-IO Certificates, the Class B-IO Distribution Amount for such Distribution Date; Twelfth, from any remaining Excess Cashflow, to the Class B-IO Certificates, any unreimbursed Class B-IO Advances; and Thirteenth, any remaining amounts to the Residual Certificates. All payments of amounts payable in respect of Basis Risk Shortfalls or Basis Risk Shortfall Carryforward Amounts made pursuant to certain interest shortfalls to, the provisions of this paragraph (a) shall, for federal income tax purposes, be deemed to have been distributed from REMIC V to the holders of the Class B-IO Exchangeable Certificates, and then paid outside of any 2006-8 REMIC to the recipients thereof pursuant to an interest rate cap contract. By accepting their Certificates the holders of the Certificates agree so to treat such payments for purposes of filing their income tax returns.
(b) On each Distribution Date, principal allocable to the related Cap Contract Payment Amount with respect Exchanged Certificates pursuant to such Payment Date clause (i)(B) above shall be distributed in the following order of priority, in each case to the extent of amounts available:
(i) first, to the holders of the related Class or Classes of Certificates, the payment of any Basis Risk Shortfall Carry Forward Amount for such Distribution Date;
(ii) second, from any remaining amounts, the payment of an amount equal to any Current Interest and Interest Carry Forward Amount for the related Class or Classes of Certificates to the extent not covered by Interest Funds or Excess Cashflow on such Distribution Date;
(iii) third, from any remaining amounts available from the Cap Contract relating to the Group I Offered Certificates and the Class I-B-3 Certificates, first to the Class I-A-1 Certificates and the Class I-A-2 Certificates, pro rata, and then to the Class I-M-1, the Class I-M-2, the Class I-B-1, the Class I-B-2 and the Class I-B-3 Certificates, in that order, to the extent not paid pursuant to clauses (i) or (ii) above; and
(iv) fourth, to the Class B-IO Certificates, any remaining amount. On each Distribution Date, amounts on deposit in the Reserve Fund held for the benefit of the Group I Offered Certificates and the Class I-B-3 Certificates will be allocated first to the Class I-A Certificates, pro rata, based on the current Realized Losses and any Unpaid Realized Loss Amount for each such Class for such Distribution Date, and then to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, in that order, to pay any current Realized Losses and any Unpaid Realized Loss Amount, in each case, for such Class and for such Distribution Date to the extent not covered by Excess Cashflow on such Distribution Date. All Cap Contract Payment Amounts made with respect to Current Interest and Interest Carry Forward Amounts will be treated, for federal income tax purposes, as reimburseable advances ("Class B-IO Advances") made from the holder of the Class B-IO Certificates. Such Class B-IO Advances will be paid back to the holder of the Class B-IO Certificate pursuant to Section 6.01(a).
(c) On each Distribution Date, all amounts transferred from the Class XP Reserve Account representing Prepayment Charges in respect of the Prepayment Charge Loans received during the related Prepayment Period will be withdrawn from the Distribution Account and distributed by the Securities Administrator to the Holders of the related Class XP Certificates and shall not be available for distribution to the Holders of any other Class of Certificates.
(d) The expenses and fees of the Trust shall be paid by each of the 2006-8 REMICs, to the extent that such expenses relate to the assets of each of such respective 2006-8 REMICs, and all other expenses and fees of the Trust shall be paid pro rata by each of the 2006-8 REMICs.
Appears in 1 contract
Samples: Pooling and Servicing Agreement
Distributions on the Group I Certificates. (a) On each Distribution Date, with respect to Loan Group I, an amount equal to the Interest Funds and Principal Funds for such Distribution Date shall be withdrawn by the Securities Administrator from the Distribution Account in respect of Loan Group I to the extent of funds on deposit therein and distributed in the following order of priority: First, Interest Funds will be distributed, in the following manner and order of priority:
1. From Interest Funds, to the Class I-A-1 I-1A-1 Certificates and Class I-A-2 I-1A-2 Certificates, the Current Interest and then any Interest Carry Forward Amount for each such Class, on a pro rata basis, based on the Current Interest and Interest Carry Forward Amount owed to due each such Class;
2. From remaining Interest Funds, to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, sequentially, in that order, the Current Interest for each such Class;
3. Any Excess Spread, to the extent necessary to cause the Overcollateralization Amount to equal to the Overcollateralization Target Amount, will be the Extra Principal Distribution Amount and will be included as part of the Principal Distribution Amount and distributed in accordance with second (A) and (B) below; and
4. Any Remaining Excess Spread will be applied, together with the Overcollateralization Release Amount, as Excess Cashflow pursuant to clauses Third through Thirteenth below. On any Distribution Date, any shortfalls resulting from the application of the Relief Act and any Prepayment Interest Shortfalls to the extent not covered by Compensating Interest Payments will be allocated as set forth in the definition of Current Interest herein. Second, to pay as principal on the Certificates entitled to payments of principal, in the following order of priority:
(A) For each Distribution Date (i) prior to the Stepdown Date or (ii) on which a Trigger Event is in effect, from Principal Funds and the Extra Principal Distribution Amount for such Distribution Date:
1. To the Class I-A-1 Certificates and Class I-A-2 Certificates, on a pro rata basis in accordance with their respective Certificate Principal Balances, an amount equal to the Principal Distribution Amount until the Certificate Principal Balance of each such Class is reduced to zero;
2. To the Class I-M-1 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
3. To the Class I-M-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
4. To the Class I-B-1 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
5. To the Class I-B-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero; and
6. To the Class I-B-3 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero.
(B) For each Distribution Date on or after the Stepdown Date, so long as a Trigger Event is not in effect, from Principal Funds and the Extra Principal Distribution Amount for such Distribution Date:
1. To the Class I-A-1 Certificates and Class I-A-2 Certificates, from the Principal Distribution Amount, an amount equal to the Class I-A Principal Distribution Amount will be distributed pro rata between the Class I-A-1 Certificates and the Class I-A-2 Certificates in accordance with their respective Certificate Principal Balances, until the Certificate Principal Balance of each such Class is reduced to zero;
2. To the Class I-M-1 Certificates, from any remaining Principal Distribution Amount, the Class I-M-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
3. To the Class I-M-2 Certificates, from any remaining Principal Distribution Amount, the Class I-M-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
4. To the Class I-B-1 Certificates, from any remaining Principal Distribution Amount, the Class I-B-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
5. To the Class I-B-2 Certificates, from any remaining Principal Distribution Amount, the Class I-B-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; and
6. To the Class I-B-3 Certificates, from any remaining Principal Distribution Amount, the Class I-B-3 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero. Third, from any remaining Excess Cashflow, the following amounts to each Class of Class I-A Certificates, on a pro rata basis in accordance with the respective amounts owed to each such Class: (a) any Interest Carry Forward Amount to the extent not paid pursuant to clause First 1 above and then (b) any Unpaid Realized Loss Amount, in each case for each such Class for such Distribution Date; Fourth, from any remaining Excess Cashflow, the following amounts to the Class I-M-1 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Fifth, from any remaining Excess Cashflow, the following amounts to the Class I-M-2 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Sixth, from any remaining Excess Cashflow, the following amounts to the Class I-B-1 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Seventh, from any remaining Excess Cashflow, the following amounts to the Class I-B-2 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Eighth, from any remaining Excess Cashflow, the following amounts to the Class I-B-3 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Ninth, from any remaining Excess Cashflow, to each Class of Class I-A Certificates, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts) for each such Class for such Distribution Date, pro rata, based on the Basis Risk Shortfall and Basis Risk Shortfall Carry Forward Amount owed to each such Class (any such amounts being first deposited to, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); Tenth, from any remaining Excess Cashflow, to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, in that order, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts), in each case for such Class for such Distribution Date (any such amounts being first deposited to, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); Eleventh, from any remaining Excess Cashflow, to the Class B-IO Certificates, the Class B-IO Distribution Amount for such Distribution Date; Twelfth, from any remaining Excess Cashflow, to the Class B-IO Certificates, any unreimbursed Class B-IO Advances; and Thirteenth, any remaining amounts to the Residual Certificates. All payments of amounts in respect of Basis Risk Shortfalls or Basis Risk Shortfall Carryforward Amounts made pursuant to the provisions of this paragraph (a) shall, for federal income tax purposes, be deemed to have been distributed from REMIC V to the holders of the Class B-IO Certificates, and then paid outside of any 2006-8 REMIC to the recipients thereof pursuant to an interest rate cap contract. By accepting their Certificates the holders of the Certificates agree so to treat such payments for purposes of filing their income tax returns.
(b) On each Distribution Date, the related Cap Contract Payment Amount with respect to such Payment Date shall be distributed in the following order of priority, in each case to the extent of amounts available:
(i) first, to the holders of the related Class or Classes of Certificates, the payment of any Basis Risk Shortfall Carry Forward Amount for such Distribution Date;
(ii) second, from any remaining amounts, the payment of an amount equal to any Current Interest and Interest Carry Forward Amount for the related Class or Classes of Certificates to the extent not covered by Interest Funds or Excess Cashflow on such Distribution Date;
(iii) third, from any remaining amounts available from the Cap Contract relating to the Group I Offered Certificates and the Class I-B-3 Certificates, first to the Class I-A-1 Certificates and the Class I-A-2 Certificates, pro rata, and then to the Class I-M-1, the Class I-M-2, the Class I-B-1, the Class I-B-2 and the Class I-B-3 Certificates, in that order, to the extent not paid pursuant to clauses (i) or (ii) above; and
(iv) fourth, to the Class B-IO Certificates, any remaining amount. On each Distribution Date, amounts on deposit in the Reserve Fund held for the benefit of the Group I Offered Certificates and the Class I-B-3 Certificates will be allocated first to the Class I-A Certificates, pro rata, based on the current Realized Losses and any Unpaid Realized Loss Amount for each such Class for such Distribution Date, and then to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, in that order, to pay any current Realized Losses and any Unpaid Realized Loss Amount, in each case, for such Class and for such Distribution Date to the extent not covered by Excess Cashflow on such Distribution Date. All Cap Contract Payment Amounts made with respect to Current Interest and Interest Carry Forward Amounts will be treated, for federal income tax purposes, as reimburseable advances ("Class B-IO Advances") made from the holder of the Class B-IO Certificates. Such Class B-IO Advances will be paid back to the holder of the Class B-IO Certificate pursuant to Section 6.01(a).
(c) On each Distribution Date, all amounts transferred from the Class XP Reserve Account representing Prepayment Charges in respect of the Prepayment Charge Loans received during the related Prepayment Period will be withdrawn from the Distribution Account and distributed by the Securities Administrator to the Holders of the related Class XP Certificates and shall not be available for distribution to the Holders of any other Class of Certificates.
(d) The expenses and fees of the Trust shall be paid by each of the 2006-8 REMICs, to the extent that such expenses relate to the assets of each of such respective 2006-8 REMICs, and all other expenses and fees of the Trust shall be paid pro rata by each of the 2006-8 REMICs.
Appears in 1 contract
Distributions on the Group I Certificates. (a) On each Distribution Date, with respect to Loan Group I, an amount equal to the Interest Funds and Principal Funds for such Distribution Date shall be withdrawn by the Securities Administrator from the Distribution Account in respect of Loan Group I to the extent of funds on deposit therein and distributed in the following order of priority: First, Interest Funds will be distributed, in the following manner and order of priority:
1. From Interest Funds, to the Class I-A-1 Certificates and Class I-A-2 Certificates, the Current Interest and then any Interest Carry Forward Amount for each such Class, on a pro rata basis, based on the Current Interest and Interest Carry Forward Amount owed to due each such Class;
2. From remaining Interest Funds, to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, sequentially, in that order, the Current Interest for each such Class;
3. Any Excess Spread, to the extent necessary to cause the Overcollateralization Amount to equal to the Overcollateralization Target Amount, will be the Extra Principal Distribution Amount and will be included as part of the Principal Distribution Amount and distributed in accordance with second (A) and (B) below; and
4. Any Remaining Excess Spread will be applied, together with the Overcollateralization Release Amount, as Excess Cashflow pursuant to clauses Third through Thirteenth below. On any Distribution Date, any shortfalls resulting from the application of the Relief Act and any Prepayment Interest Shortfalls to the extent not covered by Compensating Interest Payments will be allocated as set forth in the definition of Current Interest herein. Second, to pay as principal on the Certificates entitled to payments of principal, in the following order of priority:
(A) For each Distribution Date (i) prior to the Stepdown Date or (ii) on which a Trigger Event is in effect, from Principal Funds and the Extra Principal Distribution Amount for such Distribution Date:
1. To the Class I-A-1 Certificates and Class I-A-2 Certificates, on a pro rata basis in accordance with their respective Certificate Principal Balances, an amount equal to the Principal Distribution Amount until the Certificate Principal Balance of each such Class is reduced to zero;
2. To the Class I-M-1 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
3. To the Class I-M-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
4. To the Class I-B-1 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
5. To the Class I-B-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero; and
6. To the Class I-B-3 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero.
(B) For each Distribution Date on or after the Stepdown Date, so long as a Trigger Event is not in effect, from Principal Funds and the Extra Principal Distribution Amount for such Distribution Date:
1. To the Class I-A-1 Certificates and Class I-A-2 Certificates, from the Principal Distribution Amount, an amount equal to the Class I-A Principal Distribution Amount will be distributed pro rata between the Class I-A-1 Certificates and the Class I-A-2 Certificates in accordance with their respective Certificate Principal Balances, until the Certificate Principal Balance of each such Class is reduced to zero;
2. To the Class I-M-1 Certificates, from any remaining Principal Distribution Amount, the Class I-M-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
3. To the Class I-M-2 Certificates, from any remaining Principal Distribution Amount, the Class I-M-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
4. To the Class I-B-1 Certificates, from any remaining Principal Distribution Amount, the Class I-B-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
5. To the Class I-B-2 Certificates, from any remaining Principal Distribution Amount, the Class I-B-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; and
6. To the Class I-B-3 Certificates, from any remaining Principal Distribution Amount, the Class I-B-3 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero. Third, from any remaining Excess Cashflow, the following amounts to each Class of Class I-A Certificates, on a pro rata basis in accordance with the respective amounts owed to each such Class: (a) any Interest Carry Forward Amount to the extent not paid pursuant to clause First 1 above and then (b) any Unpaid Realized Loss Amount, in each case for each such Class for such Distribution Date; Fourth, from any remaining Excess Cashflow, the following amounts to the Class I-M-1 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Fifth, from any remaining Excess Cashflow, the following amounts to the Class I-M-2 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Sixth, from any remaining Excess Cashflow, the following amounts to the Class I-B-1 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Seventh, from any remaining Excess Cashflow, the following amounts to the Class I-B-2 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Eighth, from any remaining Excess Cashflow, the following amounts to the Class I-B-3 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Ninth, from any remaining Excess Cashflow, to each Class of Class I-A Certificates, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts) for each such Class for such Distribution Date, pro rata, based on the Basis Risk Shortfall and Basis Risk Shortfall Carry Forward Amount owed to each such Class (any such amounts being first deposited to, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); Tenth, from any remaining Excess Cashflow, to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, in that order, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts), in each case for such Class for such Distribution Date (any such amounts being first deposited to, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); Eleventh, from any remaining Excess Cashflow, to the Class B-IO Certificates, the Class B-IO Distribution Amount for such Distribution Date; Twelfth, from any remaining Excess Cashflow, to the Class B-IO Certificates, any unreimbursed Class B-IO Advances; and Thirteenth, any remaining amounts to the Residual Certificates. All payments of amounts in respect of Basis Risk Shortfalls or Basis Risk Shortfall Carryforward Amounts made pursuant to the provisions of this paragraph (a) shall, for federal income tax purposes, be deemed to have been distributed from REMIC V to the holders of the Class B-IO Certificates, and then paid outside of any 2006-8 REMIC to the recipients thereof pursuant to an interest rate cap contract. By accepting their Certificates the holders of the Certificates agree so to treat such payments for purposes of filing their income tax returns.
(b) On each Distribution Date, the related Cap Contract Payment Amount with respect to such Payment Date shall be distributed in the following order of priority, in each case to the extent of amounts available:
(i) first, to the holders of the related Class or Classes of Certificates, the payment of any Basis Risk Shortfall Carry Forward Amount for such Distribution Date;
(ii) second, from any remaining amounts, the payment of an amount equal to any Current Interest and Interest Carry Forward Amount for the related Class or Classes of Certificates to the extent not covered by Interest Funds or Excess Cashflow on such Distribution Date;
(iii) third, from any remaining amounts available from the Cap Contract relating to the Group I Offered Certificates and the Class I-B-3 Certificates, first to the Class I-A-1 Certificates and the Class I-A-2 Certificates, pro rata, and then to the Class I-M-1, the Class I-M-2, the Class I-B-1, the Class I-B-2 and the Class I-B-3 Certificates, in that order, to the extent not paid pursuant to clauses (i) or (ii) above; and
(iv) fourth, to the Class B-IO Certificates, any remaining amount. On each Distribution Date, amounts on deposit in the Reserve Fund held for the benefit of the Group I Offered Certificates and the Class I-B-3 Certificates will be allocated first to the Class I-A Certificates, pro rata, based on the current Realized Losses and any Unpaid Realized Loss Amount for each such Class for such Distribution Date, and then to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, in that order, to pay any current Realized Losses and any Unpaid Realized Loss Amount, in each case, for such Class and for such Distribution Date to the extent not covered by Excess Cashflow on such Distribution Date. All Cap Contract Payment Amounts made with respect to Current Interest and Interest Carry Forward Amounts will be treated, for federal income tax purposes, as reimburseable advances ("Class B-IO Advances") made from the holder of the Class B-IO Certificates. Such Class B-IO Advances will be paid back to the holder of the Class B-IO Certificate pursuant to Section 6.01(a).
(c) On each Distribution Date, all amounts transferred from the Class XP Reserve Account representing Prepayment Charges in respect of the Prepayment Charge Loans received during the related Prepayment Period will be withdrawn from the Distribution Account and distributed by the Securities Administrator to the Holders of the related Class XP Certificates and shall not be available for distribution to the Holders of any other Class of Certificates.
(d) The expenses and fees of the Trust shall be paid by each of the 2006-8 REMICs, to the extent that such expenses relate to the assets of each of such respective 2006-8 REMICs, and all other expenses and fees of the Trust shall be paid pro rata by each of the 2006-8 REMICs.
Appears in 1 contract
Samples: Pooling and Servicing Agreement (Bear Stearns ALT-A Trust 2006-5)
Distributions on the Group I Certificates. (a) On each Distribution Date, with respect to Loan Group I, an amount equal to the Interest Funds and Principal Funds Available Distribution Amount for such Distribution Date shall be withdrawn by the Securities Administrator from the Distribution Account in respect of Loan Group I to the extent of funds on deposit therein in the sub-account of the Distribution Account relating to the Group I Mortgage Loans and distributed as directed in accordance with the Remittance Report for such Distribution Date, in the following order of priority: First, in the following order of priority:
1. commencing on the Distribution Date in January 2008, to the Supplemental Interest Funds will Trust from the Interest Remittance Amount, any Group I Net Swap Payment and any Swap Termination Payment owed to the Group I Swap Provider (unless the Group I Swap Provider is a Defaulting Party or the sole Affected Party (as defined in the ISDA Master Agreement) and to the extent not paid by the Securities Administrator from any upfront payment received pursuant to any replacement interest rate swap agreement that may be distributedentered into by the Supplemental Interest Trust Trustee);
2. from the Interest Remittance Amount for that Distribution Date remaining after distribution to the Supplemental Interest Trust pursuant to clause (1) above, to the holders of the Group I Senior Certificates on a pro rata basis based on the entitlement of each such Class, the related Senior Interest Distribution Amount for each such Class and such Distribution Date;
3. to the extent of the Interest Remittance Amount remaining after distribution to the Supplemental Interest Trust pursuant to clause (1) above and to the Group I Senior Certificates pursuant to clause (2) above, to the holders of the Class I-M-1 Certificates, the Interest Distribution Amount for such Class for such Distribution Date;
4. to the extent of the Interest Remittance Amount remaining after distribution to the Supplemental Interest Trust pursuant to clause (1) above, to the Group I Senior Certificates pursuant to clause (2) above and to the holders of the Class I-M-1 Certificates pursuant to clause (3) above, to the holders of the Class I-M-2 Certificates, the Interest Distribution Amount for such Class for such Distribution Date; and
5. to the extent of the Interest Remittance Amount remaining after distribution to the Supplemental Interest Trust pursuant to clause (1) above, to the Group I Senior Certificates pursuant to clause (2) above, to the holders of the Class I-M-1 Certificates pursuant to clause (3) above and to the holders of the Class I-M-2 Certificates pursuant to clause (4) above, to the holders of the Class I-M-3 Certificates, the Interest Distribution Amount for such Class for such Distribution Date. Second, to pay to the Group I Offered Certificates in respect of principal, to the extent of the Available Distribution Amount remaining on each Distribution Date, the Principal Distribution Amount for each Distribution Date, in the following manner amount and order of priority:
1. From commencing on the Distribution Date in January 2008, to the Supplemental Interest FundsTrust, any Group I Net Swap Payment and any Swap Termination Payment owed to the Group I Swap Provider (unless the Group I Swap Provider is a Defaulting Party or the sole Affected Party (as defined in the ISDA Master Agreement) and to the extent not paid by the Securities Administrator from any upfront payment received pursuant to any replacement interest rate swap agreement that may be entered into by the Supplemental Interest Trust Trustee) remaining unpaid after the distribution of the Interest Remittance Amount on such Distribution Date;
2. from the Principal Distribution Amount remaining after distributions pursuant to clause (1) above, the Senior Principal Distribution Amount for such Distribution Date, sequentially, to the Class I-A-1 Certificates A-1, Class I-A-2, Class I-A-3 and Class I-A-2 A-4 Certificates, in that order, until the Current Interest Certificate Principal Balance of each such Class has been reduced to zero.
3. to the Class I-M-1 Certificates, in an amount equal to the Class M-1 Principal Distribution Amount for such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero.
4. to the Class I-M-2 Certificates, in an amount equal to the Class M-2 Principal Distribution Amount for such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero.
5. to the Class I-M-3 Certificates, in an amount equal to the Class M-3 Principal Distribution Amount for such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero. Notwithstanding the foregoing, on any Distribution Date after the Certificate Principal Balances of the Group I Mezzanine Certificates have been reduced to zero, the Senior Principal Distribution Amount for that Distribution Date will be allocated among the Group I Senior Certificates concurrently and then on a pro rata basis, based on the Certificate Principal Balance of each such Class. Third, after the payment of interest and principal to the Group I Senior Certificates and Group I Mezzanine Certificates as described in clauses First and Second above, any Net Monthly Excess Cashflow for such Distribution Date will be distributed as follows:
1. to the Holders of the Group I Senior Certificates and Group I Mezzanine Certificates in an amount equal to any Extra Principal Distribution Amount for such Distribution Date, payable to such Holders as part of the Principal Distribution Amount in accordance with clause Second above following distributions pursuant to Section 5.04(f);
2. sequentially, to the holders of the Class I-M-1, Class I-M-2 and Class I-M-3 Certificates, in that order, the related Interest Carry Forward Amount allocable to each such Class on such Distribution Date, following distributions pursuant to Section 5.04(f)(3);
3. to the Net WAC Reserve Fund, an amount equal to (i) with respect to the Group I Offered Certificates other than the Class I-A-4 Certificates, the sum of the Net WAC Rate Carryover Amounts, if any, with respect to such Class and (ii) with respect to the Class I-A-4 Certificates, the amount by which the sum of the related Net WAC Rate Carryover Amount exceeds the amount received by the Securities Administrator with respect to the Group I Swap Agreement in respect of Net WAC Rate Carryover Amounts since the prior Distribution Date;
4. to the Supplemental Interest Trust and then from the Supplemental Interest Trust to the Group I Swap Provider, any Swap Termination Payment owed to the Group I Swap Provider in the event of a Swap Provider Trigger Event and the Group I Swap Provider is a Defaulting Party or the sole Affected Party (as defined in the ISDA Master Agreement) not paid on prior Distribution Dates and to the extent not paid by the Securities Administrator from any upfront payment received pursuant to any replacement interest rate swap agreement that may be entered into by the Supplemental Interest Trust Trustee;
5. to the holders of the Class I-X, the Class I-X Distribution Amount; and
6. to the holders of the Class I-R Certificates, any remaining amounts. On each Distribution Date, the Securities Administrator, after making the required distributions of interest and principal to the Group I Senior Certificates and Group I Mezzanine Certificates as described in clauses First and Second above and after the distribution of the Net Monthly Excess Cashflow as described in clause Third above, will withdraw from the Net WAC Reserve Fund the amounts on deposit therein and distribute such amounts to the Group I Senior Certificates and the Group I Mezzanine Certificates in respect of any Net WAC Rate Carryover Amounts due to each such Class in the following manner and order of priority first, to the Group I Senior Certificates, the related Net WAC Rate Carryover Amount (with respect to the Class I-A-4 Certificates, after taking into account payments made pursuant to the Group I Swap Agreement but prior to taking into account payments made pursuant to the Class I-A-4 Cap Contract) for each such ClassClass for such Distribution Date, on a pro rata basis, based on the Current Interest and Interest Carry Forward Amount owed to entitlement of each such Class;
2. From remaining Interest Funds; second, to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, sequentially, in that order, the Current Interest for each such Class;
3. Any Excess Spread, to the extent necessary to cause the Overcollateralization Amount to equal to the Overcollateralization Target Amount, will be the Extra Principal Distribution Amount and will be included as part of the Principal Distribution Amount and distributed in accordance with second (A) and (B) below; and
4. Any Remaining Excess Spread will be applied, together with the Overcollateralization Release Amount, as Excess Cashflow pursuant to clauses Third through Thirteenth below. On any Distribution Date, any shortfalls resulting from the application of the Relief Act and any Prepayment Interest Shortfalls to the extent not covered by Compensating Interest Payments will be allocated as set forth in the definition of Current Interest herein. Second, to pay as principal on the Certificates entitled to payments of principal, in the following order of priority:
(A) For each Distribution Date (i) prior to the Stepdown Date or (ii) on which a Trigger Event is in effect, from Principal Funds and the Extra Principal Distribution Amount for such Distribution Date:
1. To the Class I-A-1 Certificates and Class I-A-2 Certificates, on a pro rata basis in accordance with their respective Certificate Principal Balances, an amount equal to the Principal Distribution Amount until the Certificate Principal Balance of each such Class is reduced to zero;
2. To the Class I-M-1 Certificates, any remaining Principal the related Net WAC Rate Carryover Amount for such Distribution Amount until the Certificate Principal Balance thereof is reduced Date for such Class; third, to zero;
3. To the Class I-M-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
4. To the Class I-B-1 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
5. To the Class I-B-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero; and
6. To the Class I-B-3 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero.
(B) For each Distribution Date on or after the Stepdown Date, so long as a Trigger Event is not in effect, from Principal Funds and the Extra Principal Distribution related Net WAC Rate Carryover Amount for such Distribution Date:
1. To the Class I-A-1 Certificates and Class I-A-2 Certificates, from the Principal Distribution Amount, an amount equal to the Class I-A Principal Distribution Amount will be distributed pro rata between the Class I-A-1 Certificates and the Class I-A-2 Certificates in accordance with their respective Certificate Principal Balances, until the Certificate Principal Balance of each such Class is reduced to zero;
2. To the Class I-M-1 Certificates, from any remaining Principal Distribution Amount, the Class I-M-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
3. To the Class I-M-2 Certificates, from any remaining Principal Distribution Amount, the Class I-M-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
4. To the Class I-B-1 Certificates, from any remaining Principal Distribution Amount, the Class I-B-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
5. To the Class I-B-2 Certificates, from any remaining Principal Distribution Amount, the Class I-B-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; and
6. To the Class I-B-3 Certificates, from any remaining Principal Distribution Amount, the Class I-B-3 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero. Third, from any remaining Excess Cashflow, the following amounts to each Class of Class I-A Certificates, on a pro rata basis in accordance with the respective amounts owed to each Date for such Class: (a) any Interest Carry Forward Amount to the extent not paid pursuant to clause First 1 above ; and then (b) any Unpaid Realized Loss Amount, in each case for each such Class for such Distribution Date; Fourth, from any remaining Excess Cashflow, the following amounts to the Class I-M-1 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Fifth, from any remaining Excess Cashflow, the following amounts to the Class I-M-2 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Sixth, from any remaining Excess Cashflow, the following amounts to the Class I-B-1 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Seventh, from any remaining Excess Cashflow, the following amounts to the Class I-B-2 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Eighth, from any remaining Excess Cashflow, the following amounts to the Class I-B-3 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Ninth, from any remaining Excess Cashflow, to each Class of Class I-A Certificates, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts) for each such Class for such Distribution Date, pro rata, based on the Basis Risk Shortfall and Basis Risk Shortfall Carry Forward Amount owed to each such Class (any such amounts being first deposited to, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); Tenth, from any remaining Excess Cashflowfourth, to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 M-3 Certificates, in that order, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts), in each case for such Class Net WAC Rate Carryover Amount for such Distribution Date (any such amounts being first deposited to, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); Eleventh, from any remaining Excess Cashflow, to the Class B-IO Certificates, the Class B-IO Distribution Amount for such Distribution Date; Twelfth, from any remaining Excess Cashflow, Class (prior to the Class B-IO Certificates, any unreimbursed Class B-IO Advances; and Thirteenth, any remaining amounts to the Residual Certificates. All payments of amounts in respect of Basis Risk Shortfalls or Basis Risk Shortfall Carryforward Amounts taking into account payment made pursuant to the provisions of this paragraph (a) shall, for federal income tax purposes, Class I-M-3 Cap Contract). Any amounts remaining in the Net WAC Reserve Fund will be deemed to have been distributed from REMIC V to the holders Holder of the Class BI-IO X Certificates, and then paid outside of any 2006-8 REMIC to the recipients thereof pursuant to an interest rate cap contract. By accepting their Certificates the holders of the Certificates agree so to treat such payments for purposes of filing their income tax returns.
(b) On each Distribution Date, the related Cap Contract Payment Amount with respect to such Payment Date shall be distributed in the following order of priority, in each case to the extent of amounts available:
(i) first, to the holders of the related Class or Classes of Certificates, the payment of any Basis Risk Shortfall Carry Forward Amount for such Distribution Date;
(ii) second, from any remaining amounts, the payment of an amount equal to any Current Interest and Interest Carry Forward Amount for the related Class or Classes of Certificates to the extent not covered by Interest Funds or Excess Cashflow on such Distribution Date;
(iii) third, from any remaining amounts available from the Cap Contract relating to the Group I Offered Certificates and the Class I-B-3 Certificates, first to the Class I-A-1 Certificates and the Class I-A-2 Certificates, pro rata, and then to the Class I-M-1, the Class I-M-2, the Class I-B-1, the Class I-B-2 and the Class I-B-3 Certificates, in that order, to the extent not paid pursuant to clauses (i) or (ii) above; and
(iv) fourth, to the Class B-IO Certificates, any remaining amount. On each Distribution Date, amounts on deposit in the Reserve Fund held for the benefit of the Group I Offered Certificates and the Class I-B-3 Certificates will be allocated first to the Class I-A Certificates, pro rata, based on the current Realized Losses and any Unpaid Realized Loss Amount for each such Class for such Distribution Date, and then to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, in that order, to pay any current Realized Losses and any Unpaid Realized Loss Amount, in each case, for such Class and for such Distribution Date to the extent not covered by Excess Cashflow on such Distribution Date. All Cap Contract Payment Amounts made with respect to Current Interest and Interest Carry Forward Amounts will be treated, for federal income tax purposes, as reimburseable advances ("Class B-IO Advances") made from the holder of the Class B-IO Certificates. Such Class B-IO Advances will be paid back to the holder of the Class B-IO Certificate pursuant to Section 6.01(a).
(c) On each Distribution Date, all amounts transferred from the Class XP Reserve Account representing Prepayment Charges in respect of the Prepayment Charge Group I Mortgage Loans received during the related Prepayment Period and deposited in the sub-account of the Distribution Account relating to the Group I Mortgage Loans will be withdrawn from the Distribution Account such sub-account and distributed by the Securities Administrator to the Holders of the related Class XP I-P Certificates and shall not be available for distribution to the Holders of any other Class of Group I Certificates. The payment of such Prepayment Charges shall not reduce the Certificate Principal Balance of the Class I-P Certificates.
(c) On the Distribution Date in January 2012, the Securities Administrator shall make a payment of principal to the Class I-P Certificates in reduction of the Certificate Principal Balance thereof from amounts on deposit in a separate reserve account established and maintained by the Securities Administrator for the exclusive benefit of the Class I-P Certificateholders.
(d) The expenses Subject to Section 10.02 hereof respecting the final distribution on a Class of Group I Senior Certificates or Group I Subordinate Certificates, on each Distribution Date the Securities Administrator shall make distributions to each Holder of a Group I Senior Certificate or Group I Subordinate Certificate of record on the preceding Record Date either by wire transfer in immediately available funds to the account of such Holder at a bank or other entity having appropriate facilities therefor, if (i) such Holder has so notified the Securities Administrator at least five (5) Business Days prior to the related Record Date and fees (ii) such Holder shall hold Regular Certificates with aggregate principal denominations of not less than $1,000,000 or evidencing a Percentage Interest aggregating ten percent (10%) or more with respect to such Class or, if not, by check mailed by First Class Mail to such Certificateholder at the address of such Holder appearing in the Certificate Register. Notwithstanding the foregoing, but subject to Section 10.02 hereof respecting the final distribution, distributions with respect to Group I Senior Certificates and Group I Subordinate Certificates registered in the name of a Depository shall be made to such Depository in immediately available funds.
(e) Net Swap Payments and Swap Termination Payments (other than Swap Termination Payments resulting from a Swap Provider Trigger Event) payable by the Supplemental Interest Trust to the Group I Swap Provider pursuant to the Group I Swap Agreement shall be deducted from Interest Remittance Amount relating to Loan Group I, and to the extent of any such remaining amounts due, from Principal Remittance Amount, prior to any distributions to the Holders of the Trust Group I Certificates. On each Distribution Date, such amounts will be remitted to the Supplemental Interest Trust, first to make any Group I Net Swap Payment owed to the Group I Swap Provider pursuant to the Group I Swap Agreement for such Distribution Date, and second to make any Swap Termination Payment (not due to a Swap Provider Trigger Event) owed to the Group I Swap Provider pursuant to the Group I Swap Agreement for such Distribution Date. Any Swap Termination Payment due as a result of the occurrence of a Swap Provider Trigger Event owed to the Swap Provider pursuant to the Group I Swap Agreement will be subordinated to distributions to the Holders of the Group I Senior Certificates and Mezzanine Certificates and shall be paid by as set forth in clause (f) below.
(f) On each Distribution Date, the Securities Administrator shall distribute from the amounts received from the Group I Swap Provider in respect of any Group I Net Swap Payment then on deposit in the Supplemental Interest Trust in the following order of priority:
(1) to the Holders of the 2006Class or Classes of Group I Offered Certificates then entitled to receive distributions in respect of principal, in an amount necessary to maintain or restore (but in no instance to achieve) the Required Overcollateralization Amount prior to taking into account distributions of Net Monthly Excess Cashflow made pursuant to clause (1) of clause “Third” under Section 5.04(a);
(2) to the Group I Senior Certificates, the Senior Interest Distribution Amount for such Distribution Date and any Senior Interest Distribution Amount remaining unpaid from a prior Distribution Date, on a pro rata basis based on the entitlement of each such Class, after giving effect to distributions of the Interest Remittance Amount pursuant to clause (2) of clause “First” under Section 5.04(a);
(3) to the Group I Mezzanine Certificates, in the order of the payment priority for each such Class, the Interest Distribution Amount for such Distribution Date and any Interest Carry Forward Amounts for each such Class and Distribution Date, after giving effect to distributions of the Interest Remittance Amount pursuant to clauses (3) through (5) of clause “First” under Section 5.04(a) but prior to taking into account any distributions of Net Monthly Excess Cashflow made pursuant to clause (2) of “Third” of Section 5.04(a);
(4) to the Class I-8 REMICsA-4 Certificates, any applicable Net WAC Rate Carryover Amounts, prior to giving effect to any withdrawals from the Supplemental Interest Trust from amounts available to be paid in respect of Net WAC Rate Carryover Amounts pursuant to clause (3) of clause “Third” under Section 5.04(a) and prior to distribution of payments received pursuant to the Class I-A-4 Cap Contract on such Distribution Date; and
(5) to the Class I-X Certificates, any remaining amounts. Notwithstanding the foregoing, in no instance will such payments (other than payments made under clause (5) above) be made other than to the extent that such expenses relate of Realized Losses and Net WAC Rate Carryover Amounts. Furthermore, unless and until the Required Overcollateralization Amount has been reached, payments pursuant to clauses (4) and (5) above shall be limited to the assets of each positive difference between (a) the amount of such respective 2006-8 REMICspayment remaining after application of payments pursuant to clauses (1) through (3) above and (b) the Overcollateralization Increase Amount. In no event shall monies in the Supplemental Interest Trust in respect of the Group I Swap Agreement be used to achieve the Required Overcollateralization Amount. Amounts payable by the Supplemental Interest Trust to the Securities Administrator in respect of Group I Net Swap Payments and Swap Termination Payments other than Swap Termination Payments resulting from a Swap Provider Trigger Event (and to the extent not paid by the Securities Administrator from any upfront payment received pursuant to any replacement interest rate swap agreement that may be entered into by the Supplemental Interest Trust Trustee) in respect of the Group I Swap Agreement will be deducted from related available funds before distributions to the Holders of the Group I Offered Certificates. On or before each Distribution Date, such amounts will be distributed by the trust to the Securities Administrator, and all other expenses and fees of paid by the Trust shall Securities Administrator to the Group I Swap Provider as follows:
(i) first to make any Group I Net Swap Payment owed to the Group I Swap Provider pursuant to the Group I Swap Agreement for such Distribution Date, and
(ii) second to make any Swap Termination Payment not due to a Swap Provider Trigger Event owed to the Group I Swap Provider pursuant to the Group I Swap Agreement (to the extent not paid by the Securities Administrator from any upfront payment received pursuant to any replacement interest rate swap agreement that may be paid pro rata entered into by each of the 2006-8 REMICsSecurities Administrator).
Appears in 1 contract
Distributions on the Group I Certificates. (a) On each Distribution Date, with respect to Loan Group I, an amount equal to the Interest Funds and Principal Funds for such Distribution Date shall be withdrawn by the Securities Administrator from the Distribution Account in respect of Loan Group I to the extent of funds on deposit therein and distributed in the following order of priority: First, Interest Funds will be distributed, in the following manner and order of priority:
1. From Interest Funds, to the Class I-A-1 Certificates and Class I-A-2 Certificates, the Current Interest and then any Interest Carry Forward Amount for each such Class, on a pro rata basis, based on the Current Interest and Interest Carry Forward Amount owed to each such Class;
2. From remaining Interest Funds, to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, sequentially, in that order, the Current Interest for each such Class;
3. Any Excess Spread, to the extent necessary to cause the Overcollateralization Amount to equal to the Overcollateralization Target Amount, will be the Extra Principal Distribution Amount and will be included as part of the Principal Distribution Amount and distributed in accordance with second (A) and (B) below; and
4. Any Remaining Excess Spread will be applied, together with the Overcollateralization Release Amount, as Excess Cashflow pursuant to clauses Third through Thirteenth below. On any Distribution Date, any shortfalls resulting from the application of the Relief Act and any Prepayment Interest Shortfalls to the extent not covered by Compensating Interest Payments will be allocated as set forth in the definition of Current Interest herein. Second, to pay as principal on the Certificates entitled to payments of principal, in the following order of priority:
(A) For each Distribution Date (i) prior to the Stepdown Date or (ii) on which a Trigger Event is in effect, from Principal Funds and the Extra Principal Distribution Amount for such Distribution Date:
1. To the Class I-A-1 Certificates and Class I-A-2 Certificates, on a pro rata basis in accordance with their respective Certificate Principal Balances, an amount equal to the Principal Distribution Amount until the Certificate Principal Balance of each such Class is reduced to zero;
2. To the Class I-M-1 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
3. To the Class I-M-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
4. To the Class I-B-1 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
5. To the Class I-B-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero; and
6. To the Class I-B-3 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero.
(B) For each Distribution Date on or after the Stepdown Date, so long as a Trigger Event is not in effect, from Principal Funds and the Extra Principal Distribution Amount for such Distribution Date:
1. To the Class I-A-1 Certificates and Class I-A-2 Certificates, from the Principal Distribution Amount, an amount equal to the Class I-A Principal Distribution Amount will be distributed pro rata between the Class I-A-1 Certificates and the Class I-A-2 Certificates in accordance with their respective Certificate Principal Balances, until the Certificate Principal Balance of each such Class is reduced to zero;
2. To the Class I-M-1 Certificates, from any remaining Principal Distribution Amount, the Class I-M-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
3. To the Class I-M-2 Certificates, from any remaining Principal Distribution Amount, the Class I-M-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
4. To the Class I-B-1 Certificates, from any remaining Principal Distribution Amount, the Class I-B-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
5. To the Class I-B-2 Certificates, from any remaining Principal Distribution Amount, the Class I-B-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; and
6. To the Class I-B-3 Certificates, from any remaining Principal Distribution Amount, the Class I-B-3 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero. Third, from any remaining Excess Cashflow, the following amounts to each Class of Class I-A Certificates, on a pro rata basis in accordance with the respective amounts owed to each such Class: (a) any Interest Carry Forward Amount to the extent not paid pursuant to clause First 1 above and then (b) any Unpaid Realized Loss Amount, in each case for each such Class for such Distribution Date; Fourth, from any remaining Excess Cashflow, the following amounts to the Class I-M-1 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Fifth, from any remaining Excess Cashflow, the following amounts to the Class I-M-2 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Sixth, from any remaining Excess Cashflow, the following amounts to the Class I-B-1 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Seventh, from any remaining Excess Cashflow, the following amounts to the Class I-B-2 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Eighth, from any remaining Excess Cashflow, the following amounts to the Class I-B-3 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Ninth, from any remaining Excess Cashflow, to each Class of Class I-A Certificates, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts) for each such Class for such Distribution Date, pro rata, based on the Basis Risk Shortfall and Basis Risk Shortfall Carry Forward Amount owed to each such Class (any such amounts being first deposited to, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); Tenth, from any remaining Excess Cashflow, to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, in that order, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts), in each case for such Class for such Distribution Date (any such amounts being first deposited to, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); Eleventh, from any remaining Excess Cashflow, to the Class B-IO Certificates, the Class B-IO Distribution Amount for such Distribution Date; Twelfth, from any remaining Excess Cashflow, to the Class B-IO Certificates, any unreimbursed Class B-IO Advances; and Thirteenth, any remaining amounts to the Residual Certificates. All payments of amounts in respect of Basis Risk Shortfalls or Basis Risk Shortfall Carryforward Amounts made pursuant to the provisions of this paragraph (a) shall, for federal income tax purposes, be deemed to have been distributed from REMIC V to the holders of the Class B-IO Certificates, and then paid outside of any 2006-8 7 REMIC to the recipients thereof pursuant to an interest rate cap contract. By accepting their Certificates the holders of the Certificates agree so to treat such payments for purposes of filing their income tax returns.
(b) On each Distribution Date, the related Cap Contract Payment Amount with respect to such Payment Date shall be distributed in the following order of priority, in each case to the extent of amounts available:
(i) first, to the holders of the related Class or Classes of Certificates, the payment of any Basis Risk Shortfall Carry Forward Amount for such Distribution Date;
(ii) second, from any remaining amounts, the payment of an amount equal to any Current Interest and Interest Carry Forward Amount for the related Class or Classes of Certificates to the extent not covered by Interest Funds or Excess Cashflow on such Distribution Date;
(iii) third, from any remaining amounts amounts, available from the Cap Contract Contracts relating to the Group I Offered Certificates and the Class I-B-3 Certificates, first to the Class I-A-1 Certificates and the Class I-A-2 A Certificates, pro rata, and then to the Class I-M-1, the Class I-M-2, the Class I-B-1, the Class I-B-2 and the Class I-B-3 Certificates, in that order, Basis Risk Shortfall Carry Forward Amounts (to the extent not paid pursuant to clauses clause (i) or above) and Current Interest and Interest Carry Forward Amounts for such Classes (to the extent not paid pursuant to clause (ii) aboveabove or not covered by Interest Funds or Excess Cashflow) on such Distribution Date; and
(iv) fourth, to the Class B-IO Certificates, any remaining amount. On each Distribution Date, amounts on deposit in the Reserve Fund held for the benefit of the Group I Offered Certificates and the Class I-B-3 Certificates will be allocated first to the Class I-A Certificates, pro rata, based on the current Realized Losses and any Unpaid Realized Loss Amount for each such Class for such Distribution Date, and then to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, in that order, to pay any current Realized Losses and any Unpaid Realized Loss Amount, in each case, for such Class and for such Distribution Date to the extent not covered by Excess Cashflow on such Distribution Date. All Cap Contract Payment Amounts made with respect to Current Interest and Interest Carry Forward Amounts will be treated, for federal income tax purposes, as reimburseable reimbursable advances ("Class B-IO Advances") made from the holder of the Class B-IO Certificates. Such Class B-IO Advances will be paid back to the holder of the Class B-IO Certificate pursuant to Section 6.01(a).
(c) On each Distribution Date, all amounts transferred from the Class XP Reserve Account representing Prepayment Charges in respect of the Prepayment Charge Loans received during the related Prepayment Period will be withdrawn from the Distribution Account and distributed by the Securities Administrator to the Holders of the related Class XP Certificates and shall not be available for distribution to the Holders of any other Class of Certificates.
(d) The expenses and fees of the Trust shall be paid by each of the 2006-8 7 REMICs, to the extent that such expenses relate to the assets of each of such respective 2006-8 7 REMICs, and all other expenses and fees of the Trust shall be paid pro rata by each of the 2006-8 7 REMICs.
Appears in 1 contract
Samples: Pooling and Servicing Agreement (Bear Stearns ALT-A Trust 2006-7)
Distributions on the Group I Certificates. (a) On each Distribution Date, with respect to Loan Group I, an amount equal to the Interest Funds and Principal Funds for such Distribution Date shall be withdrawn by the Securities Administrator from the Distribution Account in respect of Loan Group I to the extent of funds on deposit therein and distributed in the following order of priority: First, Interest Funds will be distributed, in the following manner and order of priority:
1. From Interest Funds, to the Class I-A-1 Certificates and Class I-A-2 Certificates, the Current Interest and then any Interest Carry Forward Amount for each such Class, on a pro rata basis, based on the Current Interest and Interest Carry Forward Amount owed to each such Class;
2. From remaining Interest Funds, to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 B-2, Class I-B-3 and Class I-B-3 B-4 Certificates, sequentially, in that order, the Current Interest for each such Class;
3. Any Excess Spread, to the extent necessary to cause the Overcollateralization Amount to equal to the Overcollateralization Target Amount, will be the Extra Principal Distribution Amount and will be included as part of the Principal Distribution Amount and distributed in accordance with second (A) and (B) below; and
4. Any Remaining Excess Spread will be applied, together with the Overcollateralization Release Amount, as Excess Cashflow pursuant to clauses Third through Thirteenth Fourteenth below. On any Distribution Date, any shortfalls resulting from the application of the Relief Act and any Prepayment Interest Shortfalls to the extent not covered by Compensating Interest Payments will be allocated as set forth in the definition of Current Interest herein. Second, to pay as principal on the Certificates entitled to payments of principal, in the following order of priority:
(A) For each Distribution Date (i) prior to the Stepdown Date or (ii) on which a Trigger Event is in effect, from Principal Funds and the Extra Principal Distribution Amount for such Distribution Date:
1. To the Class I-A-1 Certificates and Class I-A-2 Certificates, on a pro rata basis in accordance with their respective Certificate Principal Balances, an amount equal to the Principal Distribution Amount until the Certificate Principal Balance of each such Class is reduced to zero;
2. To the Class I-M-1 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
3. To the Class I-M-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
4. To the Class I-B-1 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
5. To the Class I-B-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero; and;
6. To the Class I-B-3 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero; and
7. To the Class I-B-4 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero.
(B) For each Distribution Date on or after the Stepdown Date, so long as a Trigger Event is not in effect, from Principal Funds and the Extra Principal Distribution Amount for such Distribution Date:
1. To the Class I-A-1 Certificates and Class I-A-2 Certificates, from the Principal Distribution Amount, an amount equal to the Class I-A Principal Distribution Amount will be distributed pro rata between the Class I-A-1 Certificates and the Class I-A-2 Certificates in accordance with their respective Certificate Principal Balances, until the Certificate Principal Balance of each such Class is reduced to zero;
2. To the Class I-M-1 Certificates, from any remaining Principal Distribution Amount, the Class I-M-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
3. To the Class I-M-2 Certificates, from any remaining Principal Distribution Amount, the Class I-M-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
4. To the Class I-B-1 Certificates, from any remaining Principal Distribution Amount, the Class I-B-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
5. To the Class I-B-2 Certificates, from any remaining Principal Distribution Amount, the Class I-B-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; and
6. To the Class I-B-3 Certificates, from any remaining Principal Distribution Amount, the Class I-B-3 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero.
7. To the Class I-B-4 Certificates, from any remaining Principal Distribution Amount, the Class I-B-4 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero. Third, from any remaining Excess Cashflow, the following amounts to each Class of Class I-A Certificates, on a pro rata basis in accordance with the respective amounts owed to each such Class: (a) any Interest Carry Forward Amount to the extent not paid pursuant to clause First 1 above and then (b) any Unpaid Realized Loss Amount, in each case for each such Class for such Distribution Date; Fourth, from any remaining Excess Cashflow, the following amounts to the Class I-M-1 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Fifth, from any remaining Excess Cashflow, the following amounts to the Class I-M-2 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Sixth, from any remaining Excess Cashflow, the following amounts to the Class I-B-1 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Seventh, from any remaining Excess Cashflow, the following amounts to the Class I-B-2 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Eighth, from any remaining Excess Cashflow, the following amounts to the Class I-B-3 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Ninth, from any remaining Excess Cashflow, the following amounts to the Class I-B-4 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Tenth, from any remaining Excess Cashflow, to each Class of Class I-A Certificates, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts) for each such Class for such Distribution Date, pro rata, based on the Basis Risk Shortfall and Basis Risk Shortfall Carry Forward Amount owed to each such Class (any such amounts being first deposited to, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); TenthEleventh, from any remaining Excess Cashflow, to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 B-2, Class I-B-3 and Class I-B-3 B-4 Certificates, in that order, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts), in each case for such Class for such Distribution Date (any such amounts being first deposited to, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); EleventhTwelfth, from any remaining Excess Cashflow, to the Class B-IO Certificates, the Class B-IO Distribution Amount for such Distribution Date; TwelfthThirteenth, from any remaining Excess Cashflow, to the Class B-IO Certificates, any unreimbursed Class B-IO Advances; and Thirteenth, Fourteenth any remaining amounts to the Residual Certificates. All payments of amounts in respect of Basis Risk Shortfalls or Basis Risk Shortfall Carryforward Amounts made pursuant to the provisions of this paragraph (a) shall, for federal income tax purposes, be deemed to have been distributed from REMIC V IV to the holders of the Class B-IO Certificates, and then paid outside of any 20062007-8 2 REMIC to the recipients thereof pursuant to an interest rate cap contract. By accepting their Certificates the holders of the Certificates agree so to treat such payments for purposes of filing their income tax returns.
(b) On each Distribution Date, the related Cap Contract Payment Amount with respect to such Payment Date shall be distributed in the following order of priority, in each case to the extent of amounts available:
(i) first, to the holders of the related Class or Classes of Certificates, the payment of any Basis Risk Shortfall Carry Forward Amount for such Distribution Date;
(ii) second, from any remaining amounts, the payment of an amount equal to any Current Interest and Interest Carry Forward Amount for the related Class or Classes of Certificates to the extent not covered by Interest Funds or Excess Cashflow on such Distribution Date;
(iii) third, from any remaining amounts amounts, available from the Cap Contract Contracts relating to the Group I Offered Certificates and the Class I-B-3 B-4 Certificates, first to the Class I-A-1 Certificates and the Class I-A-2 Certificates, pro rata, and then to the Class I-M-1, the Class I-M-2, the Class I-B-1, the Class I-B-2 B-2, the Class I-B-3 and the Class I-B-3 B-4 Certificates, in that order, Basis Risk Shortfall Carry Forward Amounts (to the extent not paid pursuant to clauses clause (i) or above) and Current Interest and Interest Carry Forward Amounts for such Classes (to the extent not paid pursuant to clause (ii) aboveabove or not covered by Interest Funds or Excess Cashflow) on such Distribution Date; and
(iv) fourth, to the Class B-IO Certificates, any remaining amount. On each Distribution Date, amounts on deposit in the Reserve Fund held for the benefit of the Group I Offered Certificates and the Class I-B-3 B-4 Certificates will be allocated first to the Class I-A Certificates, pro rata, based on the current Realized Losses and any Unpaid Realized Loss Amount for each such Class for such Distribution Date, and then to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 B-2, Class I-B-3 and Class I-B-3 B-4 Certificates, in that order, to pay any current Realized Losses and any Unpaid Realized Loss Amount, in each case, for such Class and for such Distribution Date to the extent not covered by Excess Cashflow on such Distribution Date. All Cap Contract Payment Amounts made with respect to Current Interest and Interest Carry Forward Amounts will be treated, for federal income tax purposes, as reimburseable reimbursable advances ("Class B-IO Advances") made from the holder of the Class B-IO Certificates. Such Class B-IO Advances will be paid back to the holder of the Class B-IO Certificate pursuant to Section 6.01(a).
(c) On each Distribution Date, all amounts transferred from the Class XP Reserve Account representing Prepayment Charges in respect of the Prepayment Charge Loans with respect to the Group I Mortgage Loans received during the related Prepayment Period will be withdrawn from the Distribution Account and distributed by the Securities Administrator to the Holders of the related Class I-XP Certificates and shall not be available for distribution to the Holders of any other Class of Certificates.
(d) The expenses and fees of the Trust shall be paid by each of the 20062007-8 2 REMICs, to the extent that such expenses relate to the assets of each of such respective 20062007-8 2 REMICs, and all other expenses and fees of the Trust shall be paid pro rata by each of the 20062007-8 2 REMICs.
Appears in 1 contract
Samples: Pooling and Servicing Agreement (Bear Stearns ALT-A Trust 2007-2)
Distributions on the Group I Certificates. (a) On each Distribution Date, with respect to Loan the Group II Available Funds will be distributed as follows:
(i) on each Distribution Date, an amount equal the Group I Available Funds will be distributed to the Group I Senior Certificates as follows: FIRST, to the Group I Senior Certificates (other than the Class I-PO Certificates), on a pro rata basis, the Accrued Certificate Interest Funds and Principal Funds on such Classes for such Distribution Date shall be withdrawn by Date; SECOND, to the Securities Administrator from the Distribution Account in respect of Loan Group I Senior Certificates (other than the Class I-PO Certificates), on a pro rata basis, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of funds on deposit therein and distributed in the following order of priority: Firstremaining Group I Available Funds; THIRD, Interest Funds will be distributed, in the following manner and order of priorityconcurrently as follows:
1. From Interest Funds(I) to the extent of the remaining Group I Available Funds related to Subgroup I-1, to the Class I-A-1 Certificates and Certificates, as principal, the Subgroup I-1 Principal Distribution Amount, in the order described in this Agreement, in reduction of the Current Principal Amount thereof, until the Current Principal Amount thereof has been reduced to zero;
(II) to the extent of the remaining Group I Available Funds related to Subgroup I-2, to the Class I-A-2 Certificates, as principal, the Subgroup I-2 Principal Distribution Amount, in the order described in this Agreement, in reduction of the Current Interest and then any Interest Carry Forward Principal Amount for each such Classthereof, on a pro rata basis, based on until the Current Interest and Interest Carry Forward Principal Amount owed thereof has been reduced to each such Class;zero; and
2. From (III) to the extent of the remaining Interest FundsGroup I Available Funds related to Subgroup I-3, to the Class I-M-1A-3 Certificates, as principal, the Subgroup I-3 Principal Distribution Amount, in the order described in this Agreement, in reduction of the Current Principal Amount thereof, until the Current Principal Amount thereof has been reduced to zero; FOURTH, to the Class I-M-2PO Certificates, the Class I-PO Certificate Principal Distribution Amount for such Distribution Date to the extent of the remaining Group I Available Funds, until the Current Principal Amount thereof has been reduced to zero; and FIFTH, to the Class I-PO Certificates, the Class I-PO Certificate Deferred Amount, provided that, (i) on any Distribution Date, distributions pursuant to this priority FIFTH shall not exceed the excess, if any, of (x) Group I Available Funds remaining after giving effect to distributions pursuant to priorities FIRST through FOURTH above over (y) the sum of the amount of Accrued Certificate Interest for such Distribution Date and Accrued Certificate Interest remaining undistributed from previous Distribution Dates on all Classes of Group I Subordinate Certificates then outstanding, (ii) such distributions shall not reduce the Current Principal Amount of the Class I-PO Certificates, and (iii) no distribution will be made in respect of the Class I-PO Certificate Deferred Amount on or after the Group I Cross-Over Date.
(ii) Except as described in paragraphs (iii) and (iv) below, on each Distribution Date prior to the Group I Cross-Over Date, an amount equal to the remaining Group I Available Funds after the distributions in clause (i) above shall be distributed sequentially in the following order, to the Class I-XB, I-B-1, Class I-B-2 B-2, Class I-B-3, Class I-B-4, Class I-B-5 and Class I-B-3 B-6 Certificates, sequentiallyin each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Group I Allocable Share for such Distribution Date (other than the Class I-XB Certificates), in that order, the Current Interest for each such Class;
3. Any Excess Spreadcase, to the extent necessary to cause the Overcollateralization Amount to equal to the Overcollateralization Target Amount, will be the Extra Principal Distribution Amount and will be included as part of the Principal Distribution Amount and distributed in accordance with second (A) and (B) below; and
4. Any Remaining Excess Spread will be applied, together with the Overcollateralization Release Amount, as Excess Cashflow pursuant to clauses Third through Thirteenth below. On any Distribution Date, any shortfalls resulting from the application of the Relief Act and any Prepayment Interest Shortfalls to the extent not covered by Compensating Interest Payments will be allocated as set forth in the definition of Current Interest herein. Second, to pay as principal on the Certificates entitled to payments of principal, in the following order of priority:remaining Group I Available Funds.
(Aiii) For On each Distribution Date (i) prior to the Stepdown Group I Cross-Over Date but after the reduction of the Current Principal Amounts of all of the Group I Senior Certificates related to a Subgroup to zero, the remaining Class or Classes of Group I Senior Certificates in the remaining Subgroups (ii) on which a Trigger Event is in effect, from Principal Funds and the Extra Principal Distribution Amount for such Distribution Date:
1. To other than the Class I-A-1 X Certificates and Class I-A-2 PO Certificates) will be entitled to receive in reduction of their Current Principal Amounts, pro rata based upon their Current Principal Amounts immediately prior to such Distribution Date, in addition to any Principal Prepayments related to such remaining Group I Senior Certificates' respective Subgroup allocated to such Group I Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Subgroup or Subgroups relating to the Class or Classes of Group I Senior Certificates of the fully repaid Subgroup; provided, however, if (A) the weighted average of the Subgroup Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Subgroup Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans in Loan Group I delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and bankruptcy and Mortgage Loans with respect to which the related mortgaged property has been acquired by the trust), averaged over the last six months, as a pro rata basis percentage of the aggregate Current Principal Amount of the Group I Subordinate Certificates does not exceed 50%, then the additional allocation of Principal Prepayments to the Subgroup I-1 Certificates, Subgroup I-2 Certificates and Subgroup I-3 Certificates in accordance with this paragraph (iii) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in Loan Group I relating to the fully repaid Class or Classes of Group I Senior Certificates will be allocated to the Group I Subordinate Certificates.
(iv) If on any Distribution Date on which the aggregate Current Principal Amount of the Subgroup I-1 Certificates, Subgroup I-2 Certificates and Subgroup I-3 Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in its related Subgroup and any Group I Subordinate Certificates are still outstanding, in each case, after giving effect to distributions to be made on such Distribution Date, (i) 100% of amounts otherwise allocable to the Group I Subordinate Certificates in respect of principal will be distributed to the Subgroup I-1 Certificates, Subgroup I-2 Certificates and Subgroup I-3 Certificates (other than the Class I-X Certificates and Class I-PO Certificates), pro rata, based upon their respective Current Principal Amounts immediately prior to such Distribution Date, in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amount of the Subgroup I-1 Certificates, Subgroup I-2 Certificates and Subgroup I-3 Certificates, as applicable, is equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in its related Subgroup, and (ii) the Accrued Certificate Principal BalancesInterest otherwise allocable to the Group I Subordinate Certificates on such Distribution Date will be reduced, if necessary, and distributed to such class or classes of Group I Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Distribution Amount until of the Certificate Principal Balance of each such Class is reduced to zero;
2. To Subgroup I-1 Certificates, Subgroup I-2 Certificates and Subgroup I-3 Certificates (other than the Class I-M-1 X, Class I-XB and Class I-PO Certificates), any remaining Principal Distribution Amount until as applicable, over (y) the Certificate aggregate Scheduled Principal Balance thereof is reduced to zero;
3of the Mortgage Loans in the related Subgroup. To Any such reduction in the Accrued Certificate Interest on the Group I Subordinate Certificates will be allocated in reverse order of the Group I Subordinate Certificates' numerical designations, commencing with the Class I-M-2 B-6 Certificates.
(v) If, after distributions have been made pursuant to priorities FIRST and SECOND of clause (i) above on any Distribution Date, the remaining Group I Available Funds related to Subgroup I-1 is less than the sum of the Subgroup I-1 Principal Distribution Amount until the and Class I-PO Certificate Principal Balance thereof Distribution Amount, or the remaining Group I Available Funds related to Subgroup I-2 is reduced less than the Subgroup I-2 Principal Distribution Amount, or the remaining Group I Available Funds related to zero;
4. To Subgroup I-3 is less than the Subgroup I-3 Principal Distribution Amount, such amounts shall be reduced, and such remaining funds will be distributed to the related Group I Senior Certificates (other than the Class I-B-1 X Certificates, ) on the basis of such reduced amounts. Notwithstanding any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero;
5. To the Class I-B-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero; and
6. To the Class I-B-3 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero.
(B) For each Distribution Date on or after the Stepdown Date, so long as a Trigger Event is not reduction in effect, from Principal Funds and the Extra Principal Distribution Amount for such Distribution Date:
1. To the Class I-A-1 Certificates and Class I-A-2 Certificates, from the Principal Distribution Amount, an amount equal principal distributable to the Class I-A Principal Distribution Amount will be distributed pro rata between PO Certificates pursuant to this paragraph, the principal balance of the Class I-A-1 PO Certificates and shall be reduced not only by principal so distributed but also by the Class I-A-2 Certificates in accordance with their respective PO Certificate Principal Balances, until the Cash Shortfall. The Class I-PO Certificate Principal Balance of each such Class is reduced to zero;
2. To Cash Shortfall for the Class I-M-1 Certificates, from PO Certificates with respect to any remaining Principal Distribution Amount, the Class I-M-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
3. To the Class I-M-2 Certificates, from any remaining Principal Distribution Amount, the Class I-M-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
4. To the Class I-B-1 Certificates, from any remaining Principal Distribution Amount, the Class I-B-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
5. To the Class I-B-2 Certificates, from any remaining Principal Distribution Amount, the Class I-B-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; and
6. To the Class I-B-3 Certificates, from any remaining Principal Distribution Amount, the Class I-B-3 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero. Third, from any remaining Excess Cashflow, the following amounts to each Class of Class I-A Certificates, on a pro rata basis in accordance with the respective amounts owed to each such Class: (a) any Interest Carry Forward Amount to the extent not paid pursuant to clause First 1 above and then (b) any Unpaid Realized Loss Amount, in each case for each such Class for such Distribution Date; Fourth, from any remaining Excess Cashflow, the following amounts Date will be added to the Class I-M-1 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss PO Certificate Deferred Amount, in each case for such Class for such Distribution Date; Fifth, from any remaining Excess Cashflow, the following amounts to the Class I-M-2 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Sixth, from any remaining Excess Cashflow, the following amounts to the Class I-B-1 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Seventh, from any remaining Excess Cashflow, the following amounts to the Class I-B-2 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Eighth, from any remaining Excess Cashflow, the following amounts to the Class I-B-3 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Ninth, from any remaining Excess Cashflow, to each Class of Class I-A Certificates, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts) for each such Class for such Distribution Date, pro rata, based on the Basis Risk Shortfall and Basis Risk Shortfall Carry Forward Amount owed to each such Class (any such amounts being first deposited to, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); Tenth, from any remaining Excess Cashflow, to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, in that order, any Basis Risk Shortfall Carryforward Amount (remaining unpaid after payments are made under the related Cap Contracts), in each case for such Class for such Distribution Date (any such amounts being first deposited to, and then immediately withdrawn from, the Reserve Fund as provided in Section 4.06); Eleventh, from any remaining Excess Cashflow, to the Class B-IO Certificates, the Class B-IO Distribution Amount for such Distribution Date; Twelfth, from any remaining Excess Cashflow, to the Class B-IO Certificates, any unreimbursed Class B-IO Advances; and Thirteenth, any remaining amounts to the Residual Certificates. All payments of amounts in respect of Basis Risk Shortfalls or Basis Risk Shortfall Carryforward Amounts made pursuant to the provisions of this paragraph (a) shall, for federal income tax purposes, be deemed to have been distributed from REMIC V to the holders of the Class B-IO Certificates, and then paid outside of any 2006-8 REMIC to the recipients thereof pursuant to an interest rate cap contract. By accepting their Certificates the holders of the Certificates agree so to treat such payments for purposes of filing their income tax returns.
(b) On each Distribution Date, the related Cap Contract Payment Amount with respect to such Payment Date shall be distributed in the following order of priority, in each case to the extent of amounts available:
(i) first, to the holders of the related Class or Classes of Certificates, the payment of any Basis Risk Shortfall Carry Forward Amount for such Distribution Date;
(ii) second, from any remaining amounts, the payment of an amount equal to any Current Interest and Interest Carry Forward Amount for the related Class or Classes of Certificates to the extent not covered by Interest Funds or Excess Cashflow on such Distribution Date;
(iii) third, from any remaining amounts available from the Cap Contract relating to the Group I Offered Certificates and the Class I-B-3 Certificates, first to the Class I-A-1 Certificates and the Class I-A-2 Certificates, pro rata, and then to the Class I-M-1, the Class I-M-2, the Class I-B-1, the Class I-B-2 and the Class I-B-3 Certificates, in that order, to the extent not paid pursuant to clauses (i) or (ii) above; and
(iv) fourth, to the Class B-IO Certificates, any remaining amount. On each Distribution Date, amounts on deposit in the Reserve Fund held for the benefit of the any Group I Offered Available Funds remaining after payment of interest and principal to the Classes of Certificates and the Class I-B-3 Certificates entitled thereto, in each case as described above, will be allocated first distributed to the Class I-A R-1 Certificates; provided that, if on any Distribution Date there are any Group I Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Group I Senior Certificates, pro rata, based on the current Realized Losses and upon their Current Principal Amounts, until all amounts due to all Classes of Group I Senior Certificates have been paid in full, before any Unpaid Realized Loss Amount for each such Class for such Distribution Date, and then amounts are distributed to the Class I-M-1, Class I-M-2, Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, in that order, to pay any current Realized Losses and any Unpaid Realized Loss Amount, in each case, for such Class and for such Distribution Date to the extent not covered by Excess Cashflow on such Distribution Date. All Cap Contract Payment Amounts made with respect to Current Interest and Interest Carry Forward Amounts will be treated, for federal income tax purposes, as reimburseable advances ("Class B-IO Advances") made from the holder of the Class B-IO Certificates. Such Class B-IO Advances will be paid back to the holder of the Class B-IO Certificate pursuant to Section 6.01(a).
(c) On each Distribution Date, all amounts transferred from the Class XP Reserve Account representing Prepayment Charges in respect of the Prepayment Charge Loans received during the related Prepayment Period will be withdrawn from the Distribution Account and distributed by the Securities Administrator to the Holders of the related Class XP Certificates and shall not be available for distribution to the Holders of any other Class of R-1 Certificates.
(d) The expenses and fees of the Trust shall be paid by each of the 2006-8 REMICs, to the extent that such expenses relate to the assets of each of such respective 2006-8 REMICs, and all other expenses and fees of the Trust shall be paid pro rata by each of the 2006-8 REMICs.
Appears in 1 contract
Samples: Pooling and Servicing Agreement (Prime Mortgage Trust 2005-5)
