Common use of Group II—Allocation of Realized Losses Clause in Contracts

Group II—Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer, based solely on the information provided by the related Servicer, shall determine the amount of Realized Losses, if any, with respect to each Group II Loan. Realized Losses on the Group II Loans for any Distribution Date will first, cause a reduction in Group II Net Monthly Excess Cash Flow for that Distribution Date, second, reduce available Net Swap Payments from the related Swap Providers, if any, for that Distribution Date, and third cause a reduction in the Group II Certificate Principal Balance of the Class II-CE Certificates for that Distribution Date, until the Group II Certificate Principal Balance thereof has been reduced to zero. To the extent that related Realized Losses on a Distribution Date cause the aggregate Group II Certificate Principal Balance of the Group II Senior Certificates, Group II Subordinate Certificates and Class II-P Certificates, after taking into account all distributions on such Distribution Date, to exceed the aggregate Principal Balance of the Group II Loans as of the last day of the related Due Period, such excess will be allocated first, to the Class II-M-9 Certificates, second, to the Class II-M-8 Certificates, third, to the Class II-M-7 Certificates, fourth, to the Class I-M-6 Certificates, fifth, to the Class I-M-5 Certificates, sixth, to the Class I-M-4 Certificates, seventh, to the Class I-M-3 Certificates, eighth, to the Class I-M-2 Certificates, ninth, to the Class I-M-1 certificates, tenth, to the Class II-A-7 Certificates, eleventh, to the remaining Group II Senior Certificates on a pro rata basis, based on the Group II Certificate Principal Balance of each such Class of Certificates; provided, that any related Realized Losses allocable to the Class II-A-2A and Class II-A-2B Certificates shall be allocated to the Class II-A-3 Certificates until its Certificate Principal Balance is reduced to zero; provided further, that any related Realized Losses allocable to the Class II-A-5 Certificates shall be allocated to the Class II-A-6 Certificates until its Certificate Principal Balance is reduced to zero. In addition, to the extent the related Servicer receives Subsequent Recoveries with respect to any defaulted Group II Loan, the amount of the Realized Loss with respect to that defaulted Group II Loan will be reduced to the extent such Subsequent Recoveries are applied to reduce the Certificate Principal Balance of any Class of Group II Senior Certificates or Group II Subordinate Certificates on any Distribution Date. Any allocation of Realized Losses to a Group II Senior Certificate or Group II Subordinate Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated as of such Distribution Date after all distributions on such Distribution Date have been made. Any allocation of Realized Losses to a Class II-CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 5.1(a)(iii)(g). No allocations of Realized Losses shall be made to the Class II-P Certificates. Notwithstanding anything to the contrary in this Agreement, in no event will the Certificate Principal Balance of any Group II Senior Certificate or Group II Subordinate Certificate be reduced more than once in respect of any particular amount both (i) allocable to the Group II Senior Certificate or Group II Subordinate Certificate in respect of related Realized Losses and (ii) payable as principal to the Holder of such Certificate from Group II Net Monthly Excess Cashflow. As used herein, any allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All related Realized Losses and all other losses allocated to a Class of Group II Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Any Subsequent Recoveries collected by the related Servicers will be distributed as part of the Group II Available Distribution Amount in accordance with the priorities described under Section 4.1. In addition, the Group II Certificate Principal Balance of each Class of Certificates that has been reduced by the allocation of a related Realized Loss to such Certificate will be increased, on a pro rata basis based on the related Allocated Realized Loss Amount with respect to the Group II Senior Certificates, and in order of seniority with respect to the Group II Subordinate Certificates, by the amount of such Subsequent Recoveries, but only to the extent that such Certificate has not been reimbursed for the amount of such Realized Loss (or a portion thereof) allocated to such Certificate from Group II Net Monthly Excess Cashflow. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. All reductions in the Group II Certificate Principal Balance of a Certificate effected by distributions of principal or allocations of related Realized Losses with respect to Group II Loans made on any Distribution Date shall be binding upon all Holders of such Certificate and of any Certificate issued upon the registration of transfer or exchange therefor or in lieu thereof, whether or not such distribution is noted on such Certificate.

Group II—Allocation of Realized Losses. (a) Prior to each Distribution Date, the Master Servicer, based solely on the information provided by the related Servicer, shall determine the amount of Realized Losses, if any, with respect to each Group II Loan. . (b) Realized Losses Losses, other than Excess Losses, on the Group II Loans shall be allocated as follows: (i) for any Distribution Date will losses allocable to principal, (A) first, cause a reduction sequentially, to the Class II-B-5, Class II-B-4, Class II-B-3, Class II-B-2, Class II-B-1 and Class II-M Certificates, in Group II Net Monthly Excess Cash Flow for that Distribution Dateorder, second, reduce available Net Swap Payments from until the related Swap Providers, if any, for that Distribution Date, and third cause a reduction in the Group II Certificate Principal Balance of each such Class been reduced to zero and (B) second, (1) with respect to Realized Losses related to the Subgroup II-1 Loans, to the Class II-CE A1 Certificates for until its Certificate Principal Balance has been reduced to zero; (2) with respect to Realized Losses related to the Subgroup II-2 Loans, to the Class II-A2 Certificates until its Certificate Principal Balance has been reduced to zero, and (3) with respect to Realized Losses related to the Subgroup II-3 Loans, to the Class II-A3 Certificates until its Certificate Principal Balance has been reduced to zero; provided, however, that Distribution following the Credit Support Depletion Date, if any loss is incurred (x) with respect to a Subgroup II-1 Discount Loan, the Subgroup II-1 Discount Fraction of such loss will first be allocated to the Class II-PO Certificates and the remainder of such loss will be allocated as described above in clause (i)(B)(1); (y) with respect to a Subgroup II-2 Discount Loan, the Subgroup II-2 Discount Fraction of such loss will first be allocated to the Class II-PO Certificates and the remainder of such loss will be allocated as described above in clause (i)(B)(2) and (z) with respect to a Subgroup II-3 Discount Loan, the Subgroup II-3 Discount Fraction of such loss will first be allocated to the Class II-PO Certificates and the remainder of such loss will be allocated as described above in clause (i)(B)(3); and (ii) for losses allocable to interest, (a) first, sequentially, to the Class II-B-5, Class II-B-4, Class II-B-3, Class II-B-2, Class II-B-1 and Class II-M Certificates, in that order, in reduction of accrued but unpaid interest thereon until the Group II amount of interest accrued on such Certificate on such Distribution Date has been reduced to zero, and then in reduction of the Certificate Principal Balance of such Certificate until the Certificate Principal Balance thereof has been reduced to zero. To the extent that related Realized Losses on a Distribution Date cause the aggregate Group II Certificate Principal Balance of , and (b) second, to the Group II Senior CertificatesCertificates relating to the Loan Subgroup for which such Realized Losses were incurred, by Pro Rata Allocation, in reduction of accrued but unpaid interest thereon until the amount of interest accrued on such Certificate has been reduced to zero and then with respect to the Group II Subordinate Senior Certificates (other than the Interest only Certificates and Class II-P PO Certificates), after taking into account all distributions on such Distribution Date, to exceed the aggregate Principal Balance in reduction of the Group II Loans as of the last day of the related Due Period, such excess will be allocated first, to the Class II-M-9 Certificates, second, to the Class II-M-8 Certificates, third, to the Class II-M-7 Certificates, fourth, to the Class I-M-6 Certificates, fifth, to the Class I-M-5 Certificates, sixth, to the Class I-M-4 Certificates, seventh, to the Class I-M-3 Certificates, eighth, to the Class I-M-2 Certificates, ninth, to the Class I-M-1 certificates, tenth, to the Class II-A-7 Certificates, eleventh, to the remaining Group II Senior Certificates on a pro rata basis, based on the Group II Certificate Principal Balance of each such Class Certificate until the aggregate of Certificates; provided, that any related Realized Losses allocable to the Class II-A-2A and Class II-A-2B Certificates shall be allocated to the Class II-A-3 Certificates until its Certificate Principal Balance is reduced to zero; provided further, that any related Realized Losses allocable to the Class II-A-5 Certificates shall be allocated to the Class II-A-6 Certificates until its Certificate Principal Balance is Balances thereof have been reduced to zero. In addition, to the extent the related Servicer receives Subsequent Recoveries with respect to any defaulted Group II Loan, the amount of the Realized Loss with respect to that defaulted Group II Loan will be reduced to the extent such Subsequent Recoveries are applied to reduce the Certificate Principal Balance of any Class of Group II Senior Certificates or Group II Subordinate Certificates on any Distribution Date. Any allocation of Realized Losses to In the event that a Group II Senior Certificate or Group II Subordinate Certificate on Servicer receives any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated as of Subsequent Recoveries, such Distribution Date after all distributions on such Distribution Date have been made. Any allocation of Realized Losses to a Class II-CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 5.1(a)(iii)(g). No allocations of Realized Losses shall be made to the Class II-P Certificates. Notwithstanding anything to the contrary in this Agreement, in no event will the Certificate Principal Balance of any Group II Senior Certificate or Group II Subordinate Certificate be reduced more than once in respect of any particular amount both (i) allocable to the Group II Senior Certificate or Group II Subordinate Certificate in respect of related Realized Losses and (ii) payable as principal to the Holder of such Certificate from Group II Net Monthly Excess Cashflow. As used herein, any allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All related Realized Losses and all other losses allocated to a Class of Group II Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Any Subsequent Recoveries collected by the related Servicers will shall be distributed as part of the Group II Subgroup II-1 Available Distribution Amount, Subgroup II-2 Available Distribution Amount or Subgroup II-3 Available Distribution Amount, as applicable, in accordance with the priorities described under in Section 4.1. In addition5.1, and the Group II Certificate Principal Balance of each Class of Group II Subordinate Certificates that has been reduced by the allocation of a related Realized Loss to such Certificate will shall be increased, on a pro rata basis based on the related Allocated Realized Loss Amount with respect to the Group II Senior Certificates, and in order of seniority with respect to the Group II Subordinate Certificatesseniority, by the amount of such Subsequent Recoveries, but only to the extent that such Certificate has not been reimbursed for the amount of such Realized Loss (or a portion thereof) allocated to such Certificate from Group II Net Monthly Excess Cashflow. Holders of such Certificates will are not be entitled to any payment in respect of current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. All reductions in . (c) Excess Losses with respect to the Group II Loans will be allocated to the outstanding Class or Classes of Group II Senior Certificates (other than the Interest Only Certificates) of the related Loan Subgroup and to the Group II Subordinate Certificates by Pro Rata Allocation. (d) On each Distribution Date, if the aggregate Certificate Principal Balance of a Certificate effected by the Group II Senior Certificates (other than the Interest Only Certificates) and Group II Subordinate Certificates exceeds the aggregate Principal Balance of the Group II Loans (after giving effect to distributions of principal or allocations and the allocation and reimbursement of all losses on the related Realized Losses with respect Certificates on such Distribution Date), such excess will be deemed a principal loss and will be allocated to the Group II Subordinate Certificates in reverse order of seniority until the Certificate Principal Balance of each such Class has been reduced to zero. If the Certificate Principal Balance of each Class of Group II Subordinate Certificates has been reduced to zero and the aggregate Certificate Principal Balance of the Group II Senior Certificates (other than the Interest Only Certificates) exceeds the aggregate Principal Balance of the Group II Loans made (after giving effect to distributions of principal and the allocation and reimbursement of all losses on any the Certificates on such Distribution Date shall Date), such excess will be binding upon all Holders deemed a principal loss and, (i) if attributable to the Subgroup II-1 Loans, will be allocated to Class II-1A Certificates, until its Certificate Principal Balance of such Class has been reduced to zero; (ii) if attributable to the Subgroup II-2 Loans, will be allocated to the Class II-2A Certificates, until its Certificate Principal Balance of such Class has been reduced to zero; and (iii) if attributable to the Subgroup II-3 Loans, will be allocated to the Class II-3A Certificates, until its Certificate Principal Balance of any Certificate issued upon the registration of transfer or exchange therefor or in lieu thereof, whether or not such distribution is noted on such CertificateClass has been reduced to zero.

Group II—Allocation of Realized Losses. (a) Prior to each Distribution Date, the Master Servicer, based solely on the information provided by the related Servicer, shall determine the amount of Realized Losses, if any, with respect to each Group II Loan. . (b) Realized Losses Losses, other than Excess Losses, on the Group II Loans shall be allocated as follows: (i) for any Distribution Date will losses allocable to principal, (A) first, cause a reduction sequentially, to the Class II-B-6, Class II-B-5, Class II-B-4, Class II-B-3, Class II-B-2, Class II-B-1 and Class II-M Certificates, in Group II Net Monthly Excess Cash Flow for that Distribution Dateorder, second, reduce available Net Swap Payments from until the related Swap Providers, if any, for that Distribution Date, and third cause a reduction in the Group II Certificate Principal Balance of each such Class has been reduced to zero and (B) second, (1) with respect to Realized Losses related to the Pool 2 Loans, to the Class II-CE Certificates for AR, Class 2-A-1, Class 2-A-2, Class 2-A-3, Class 2-A-4 and Class 2-A-5 Certificates, pro rata based on Certificate Principal Balance, until their respective Certificate Principal Balances have been reduced to zero; (2) with respect to Realized Losses related to the Pool 3 Loans, to the Class 3-A-2 Certificates, until its Certificate Principal Balance has been reduced to zero and then to the Class 3-A-1 Certificates, until its Certificate Principal Balance has been reduced to zero; and (3) with respect to Realized Losses related to the Pool 4 Loans, to the Class 4-A-1 Certificates, until its Certificate Principal Balance has been reduced to zero; provided, however, that Distribution following the Credit Support Depletion Date, if any loss is incurred (x) with respect to a Pool 2 Discount Loan, the Pool 2 Discount Fraction of such loss will first be allocated to the Class 2PO Certificates and the remainder of such loss will be allocated as described above in clause (i)(B)(1); (y) with respect to a Pool 3 Discount Loan, the Pool 3 Discount Fraction of such loss will first be allocated to the Class 2PO Certificates and the remainder of such loss will be allocated as described above in clause (i)(B)(2); and (z) with respect to a Pool 4 Discount Loan, the Pool 4 Discount Fraction of such loss will first be allocated to the Class 4PO Certificates and the remainder of such loss will be allocated as described above in clause (i)(B)(3); and (ii) for losses allocable to interest, (a) first, sequentially, to the Class II-B-6, Class II-B-5, Class II-B-4, Class II-B-3, Class II-B-2, Class II-B-1 and Class II-M Certificates, in that order, in reduction of accrued but unpaid interest thereon until the Group II amount of interest accrued on such Certificate on such Distribution Date has been reduced to zero, and then in reduction of the Certificate Principal Balance of such Certificate until the Certificate Principal Balance thereof has been reduced to zero. To the extent that related Realized Losses on a Distribution Date cause the aggregate Group II Certificate Principal Balance of , and (b) second, to the Group II Senior CertificatesCertificates relating to the Pool for which such Realized Losses were incurred, Group II Subordinate Certificates and Class II-P Certificatesby Pro Rata Allocation, after taking into account all distributions in reduction of accrued but unpaid interest thereon until the amount of interest accrued on such Distribution Date, Certificate has been reduced to exceed the aggregate Principal Balance of the Group II Loans as of the last day of the related Due Period, such excess will be allocated first, zero and then with respect to the Class II-M-9 Certificates, second, to the Class II-M-8 Certificates, third, to the Class II-M-7 Certificates, fourth, to the Class I-M-6 Certificates, fifth, to the Class I-M-5 Certificates, sixth, to the Class I-M-4 Certificates, seventh, to the Class I-M-3 Certificates, eighth, to the Class I-M-2 Certificates, ninth, to the Class I-M-1 certificates, tenth, to the Class II-A-7 Certificates, eleventh, to the remaining Group II Senior Certificates on a pro rata basis(other than the Interest Only Certificates and the Principal Only Certificates), based on in reduction of the Group II Certificate Principal Balance of each such Class Certificate until the aggregate of Certificates; provided, that any related Realized Losses allocable to the Class II-A-2A and Class II-A-2B Certificates shall be allocated to the Class II-A-3 Certificates until its Certificate Principal Balance is reduced to zero; provided further, that any related Realized Losses allocable to the Class II-A-5 Certificates shall be allocated to the Class II-A-6 Certificates until its Certificate Principal Balance is Balances thereof have been reduced to zero. In addition, to the extent the related Servicer receives Subsequent Recoveries with respect to any defaulted Group II Loan, the amount of the Realized Loss with respect to that defaulted Group II Loan will be reduced to the extent such Subsequent Recoveries are applied to reduce the Certificate Principal Balance of any Class of Group II Senior Certificates or Group II Subordinate Certificates on any Distribution Date. Any allocation of Realized Losses to a Group II Senior Certificate or Group II Subordinate Certificate on In the event that the Servicer receives any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated as of Subsequent Recoveries, such Distribution Date after all distributions on such Distribution Date have been made. Any allocation of Realized Losses to a Class II-CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 5.1(a)(iii)(g). No allocations of Realized Losses shall be made to the Class II-P Certificates. Notwithstanding anything to the contrary in this Agreement, in no event will the Certificate Principal Balance of any Group II Senior Certificate or Group II Subordinate Certificate be reduced more than once in respect of any particular amount both (i) allocable to the Group II Senior Certificate or Group II Subordinate Certificate in respect of related Realized Losses and (ii) payable as principal to the Holder of such Certificate from Group II Net Monthly Excess Cashflow. As used herein, any allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All related Realized Losses and all other losses allocated to a Class of Group II Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Any Subsequent Recoveries collected by the related Servicers will shall be distributed as part of the Group II Pool 2 Available Distribution Amount, Pool 3 Available Distribution Amount and Pool 4 Available Distribution Amount, as applicable, in accordance with the priorities described under in Section 4.1. In addition5.1, and the Group II Certificate Principal Balance of each Class of Group II Subordinate Certificates that has been reduced by the allocation of a related Realized Loss to such Certificate will shall be increased, on a pro rata basis based on the related Allocated Realized Loss Amount with respect to the Group II Senior Certificates, and in order of seniority with respect to the Group II Subordinate Certificatesseniority, by the amount of such Subsequent Recoveries, but only to the extent that such Certificate has not been reimbursed for the amount of such Realized Loss (or a portion thereof) allocated to such Certificate from Group II Net Monthly Excess Cashflow. Holders of such Certificates will are not be entitled to any payment in respect of current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. All reductions in . (c) Excess Losses with respect to the Group II Loans will be allocated to the outstanding Class or Classes of Group II Senior Certificates (other than the Interest Only Certificates) of the related Pool and to the Group II Mezzanine and Group II Subordinate Certificates by Pro Rata Allocation. (d) On each Distribution Date, if the aggregate Certificate Principal Balance of a Certificate effected by the Group II Senior Certificates (other than the Interest Only Certificates), Group II Mezzanine Certificates and Group II Subordinate Certificates exceeds the aggregate Principal Balance of the Group II Loans (after giving effect to distributions of principal or allocations and the allocation and reimbursement of all losses on the related Realized Losses with respect Certificates on such Distribution Date), such excess will be deemed a principal loss and will be allocated to the Group II Subordinate Certificates and Group II Mezzanine Certificates in reverse order of seniority until the Certificate Principal Balance of each such Class has been reduced to zero. If the Certificate Principal Balance of each Class of Group II Subordinate Certificates and the Group II Mezzanine Certificates has been reduced to zero and the aggregate Certificate Principal Balance of the Group II Senior Certificates (other than the Interest Only Certificates) exceeds the aggregate Principal Balance of the Group II Loans made (after giving effect to distributions of principal and the allocation and reimbursement of all losses on any Distribution Date shall be binding upon all Holders of such Certificate and of any Certificate issued upon the registration of transfer or exchange therefor or in lieu thereof, whether or not such distribution is noted Certificates on such CertificateDistribution Date), such excess will be deemed a principal loss and, (i) if attributable to the Pool 2 Loans, will be allocated to the Class II-AR, Class 2-A-1, Class 2-A-2, Class 2-A-3, Class 2-A-4 and Class 2-A-5 Certificates, pro rata based on Certificate Principal Balance, until their respective Certificate Principal Balances have been reduced to zero; (ii) if attributable to the Pool 3 Loans, will be allocated to the Class 3-A-2 Certificates, until its Certificate Principal Balance has been reduced to zero and then to the Class 3-A-1 Certificates, until its Certificate Principal Balance has been reduced to zero;and (iii) if attributable to the Pool 4 Loans, will be allocated to the Class 4-A-1 Certificates until its Certificate Principal Balance has been reduced to zero.

Group II—Allocation of Realized Losses. (a) Prior to each Distribution Date, the Master Servicer, based solely on the information provided by the related Servicer, shall determine the amount of Realized Losses, if any, with respect to each Group II Loan. . (b) Realized Losses Losses, other than Excess Losses, on the Group II Loans shall be allocated as follows: (i) for any Distribution Date will losses allocable to principal, (A) first, cause a reduction sequentially, to the Class II-B-6, Class II-B-5, Class II-B-4, Class II-B-3, Class II-B-2 and Class II-B-1 Certificates, in Group II Net Monthly Excess Cash Flow for that Distribution Dateorder, second, reduce available Net Swap Payments from until the related Swap Providers, if any, for that Distribution Date, and third cause a reduction in the Group II Certificate Principal Balance of each such Class has been reduced to zero and (B) second, (1) with respect to Realized Losses related to the Subgroup II-1 Loans, to the Class II-1A Certificates until their Certificate Principal Balance has been reduced to zero; and (2) with respect to Realized Losses related to the Subgroup II-2 Loans, sequentially, to the Class II-2A2 and Class II-2A1 Certificates, in that order, until their respective Certificate Principal Balances have been reduced to zero; provided, however, that following the Credit Support Depletion Date, if any loss is incurred (x) with respect to a Subgroup II-1 Discount Loan, the Subgroup II-1 Discount Fraction of such loss will first be allocated to the Class II-1PO Certificates and the remainder of such loss will be allocated as described above in clause (i)(B)(1) and (y) with respect to a Subgroup II-2 Discount Loan, the Subgroup II-2 Discount Fraction of such loss will first be allocated to the Class II-2PO Certificates and the remainder of such loss will be allocated as described above in clause (i)(B)(2); and (ii) for losses allocable to interest, (a) first, sequentially, to the Class II-CE Certificates for B-6, Class II-B-5, Class II-B-4, Class II-B-3, Class II-B-2 and Class II-B-1 Certificates, in that Distribution Dateorder, in reduction of accrued but unpaid interest thereon until the Group II amount of interest accrued on such Certificate on such Distribution Date has been reduced to zero, and then in reduction of the Certificate Principal Balance of such Certificate until the Certificate Principal Balance thereof has been reduced to zero. To the extent that related Realized Losses on a Distribution Date cause the aggregate Group II Certificate Principal Balance of , and (b) second, to the Group II Senior CertificatesCertificates relating to the Loan Subgroup for which such Realized Losses were incurred, Group II Subordinate Certificates and Class II-P Certificatesby Pro Rata Allocation, after taking into account all distributions in reduction of accrued but unpaid interest thereon until the amount of interest accrued on such Distribution Date, Certificate has been reduced to exceed the aggregate Principal Balance of the Group II Loans as of the last day of the related Due Period, such excess will be allocated first, zero and then with respect to the Class II-M-9 Certificates, second, to the Class II-M-8 Certificates, third, to the Class II-M-7 Certificates, fourth, to the Class I-M-6 Certificates, fifth, to the Class I-M-5 Certificates, sixth, to the Class I-M-4 Certificates, seventh, to the Class I-M-3 Certificates, eighth, to the Class I-M-2 Certificates, ninth, to the Class I-M-1 certificates, tenth, to the Class II-A-7 Certificates, eleventh, to the remaining Group II Senior Certificates on a pro rata basis(other than the Interest Only Certificates and the Principal Only Certificates), based on in reduction of the Group II Certificate Principal Balance of each such Class Certificate until the aggregate of Certificates; provided, that any related Realized Losses allocable to the Class II-A-2A and Class II-A-2B Certificates shall be allocated to the Class II-A-3 Certificates until its Certificate Principal Balance is reduced to zero; provided further, that any related Realized Losses allocable to the Class II-A-5 Certificates shall be allocated to the Class II-A-6 Certificates until its Certificate Principal Balance is Balances thereof have been reduced to zero. In addition, to the extent the related Servicer receives Subsequent Recoveries with respect to any defaulted Group II Loan, the amount of the Realized Loss with respect to that defaulted Group II Loan will be reduced to the extent such Subsequent Recoveries are applied to reduce the Certificate Principal Balance of any Class of Group II Senior Certificates or Group II Subordinate Certificates on any Distribution Date. Any allocation of Realized Losses to a Group II Senior Certificate or Group II Subordinate Certificate on In the event that the Servicer receives any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated as of Subsequent Recoveries, such Distribution Date after all distributions on such Distribution Date have been made. Any allocation of Realized Losses to a Class II-CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 5.1(a)(iii)(g). No allocations of Realized Losses shall be made to the Class II-P Certificates. Notwithstanding anything to the contrary in this Agreement, in no event will the Certificate Principal Balance of any Group II Senior Certificate or Group II Subordinate Certificate be reduced more than once in respect of any particular amount both (i) allocable to the Group II Senior Certificate or Group II Subordinate Certificate in respect of related Realized Losses and (ii) payable as principal to the Holder of such Certificate from Group II Net Monthly Excess Cashflow. As used herein, any allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All related Realized Losses and all other losses allocated to a Class of Group II Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Any Subsequent Recoveries collected by the related Servicers will shall be distributed as part of the Group II Subgroup II-1 Available Distribution Amount and Subgroup II-2 Available Distribution Amount, as applicable, in accordance with the priorities described under in Section 4.1. In addition5.1, and the Group II Certificate Principal Balance of each Class of Group II Subordinate Certificates that has been reduced by the allocation of a related Realized Loss to such Certificate will shall be increased, on a pro rata basis based on the related Allocated Realized Loss Amount with respect to the Group II Senior Certificates, and in order of seniority with respect to the Group II Subordinate Certificatesseniority, by the amount of such Subsequent Recoveries, but only to the extent that such Certificate has not been reimbursed for the amount of such Realized Loss (or a portion thereof) allocated to such Certificate from Group II Net Monthly Excess Cashflow. Holders of such Certificates will are not be entitled to any payment in respect of current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. All reductions in . (c) Excess Losses with respect to the Group II Loans will be allocated to the outstanding Class or Classes of Group II Senior Certificates (other than the Interest Only Certificates) of the related Loan Subgroup and to the Group II Subordinate Certificates by Pro Rata Allocation. (d) On each Distribution Date, if the aggregate Certificate Principal Balance of a Certificate effected by the Group II Senior Certificates (other than the Interest Only Certificates) and Group II Subordinate Certificates exceeds the aggregate Principal Balance of the Group II Loans (after giving effect to distributions of principal or allocations and the allocation and reimbursement of all losses on the related Realized Losses with respect Certificates on such Distribution Date), such excess will be deemed a principal loss and will be allocated to the Group II Subordinate Certificates in reverse order of seniority until the Certificate Principal Balance of each such Class has been reduced to zero. If the Certificate Principal Balance of each Class of Group II Subordinate Certificates has been reduced to zero and the aggregate Certificate Principal Balance of the Group II Senior Certificates (other than the Interest Only Certificates) exceeds the aggregate Principal Balance of the Group II Loans made (after giving effect to distributions of principal and the allocation and reimbursement of all losses on any the Certificates on such Distribution Date shall Date), such excess will be binding upon all Holders deemed a principal loss and, (i) if attributable to the Subgroup II-1 Loans, will be allocated to Class II-1A Certificates, until its Certificate Principal Balance of such Class has been reduced to zero; and (ii) if attributable to the Subgroup II-2 Loans, will be allocated sequentially, to the Class II-2A2 and Class II-2A1 Certificates, in that order, until their respective Certificate and of any Certificate issued upon the registration of transfer or exchange therefor or in lieu thereof, whether or not such distribution is noted on such CertificatePrincipal Balances have been reduced to zero.