The Reserve Funds. (a) On the Closing Date, the Trustee shall establish and maintain in the name of the Trustee, in the Supplemental Interest Trust for the benefit of the holders of the Class 1-A4 and Class X Certificates, the Class 1-A4 Reserve Fund, into which the Depositor shall deposit $1,000. The Trustee shall hold the Class 1-A4 Cap Agreement as an asset in the Class 1-A4 Reserve Fund. The Class 1-A4 Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation other moneys of the Trustee held pursuant to this Agreement. The Class 1-A4 Reserve Fund shall not be an asset of any REMIC or the Trust Fund established hereby. The Trustee shall deposit promptly upon receipt in the Class 1-A4 Reserve Fund any amounts received from the Class 1-A4 Cap Agreement. (b) On each Distribution Date, the Trustee, on behalf of the Supplemental Interest Trust, shall distribute amounts on deposit in the Class 1-A4 Reserve Fund, first, to the Holders of the Class 1-A4 Certificates, in an amount up to any Basis Risk Shortfalls thereon and second, to the Holders of the Class 1-A4 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls thereon. Any remaining amounts shall be retained in the Class 1-A4 Reserve Fund for distribution on future Distribution Dates. (c) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 1-A4 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 1-A4 Reserve Fund and any future amounts payable under the Class 1-A4 Cap Agreement shall be distributed to the Class X Certificateholder. (d) Funds in the Class 1-A4 Reserve Fund shall be invested in Eligible Investments. The Class X Certificates shall evidence ownership of the Class 1-A4 Reserve Fund for federal income tax purposes and LBH on behalf of the Holders thereof shall direct the Trustee, in writing, as to investment of amounts on deposit therein. LBH shall be liable for any losses incurred on such investments. In the absence of written instructions from LBH as to investment of funds on deposit in the Class 1-A4 Reserve Fund, such funds shall remain uninvested. The Trustee shall account for the Supplemental Interest Trust as a disregarded entity as long as there is a single holder of the Class X Certificates and, in no event, as an asset of any REMIC created pursuant to this Agreement. (e) For federal income tax purposes, the Trustee shall treat the holders of the Class 1-A4 Certificates as having entered into a notional principal contract with the holders of the Class X Certificates. Pursuant to such notional principal contract, all holders of the Class X Certificates shall be treated as having agreed to pay Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls to the holders of the Class 1-A4 Certificates. Any payments to the Class 1-A4 Certificates in light of the foregoing shall not be payments with respect to a “regular interest” in a REMIC within the meaning of Code Section 860G(a)(1). Notwithstanding the priority and sources of payments set forth in Article V hereof or otherwise, the Trustee shall account for all distributions on the Class 1-A4 Certificates as set forth in this section. For purposes of providing tax information reporting with respect to the Class 1-A4 Certificates, the Trustee shall treat the notional principal contract described in this paragraph as having a value equal to the Notional Principal Contract Value as of the Closing Date.
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The Reserve Funds. (a) On the Closing Date, the Trustee shall establish and maintain in the name of the Trustee, in the Supplemental Interest Trust for the benefit of the holders of the Class 1-A4 A2 and Class X Certificates, the Class 1-A4 A2 Reserve Fund, and for the benefit of the holders of the Class 1-A5 and Class X Certificates, the Class 1-A5 Reserve Fund, into which the Depositor shall deposit $1,0001,000 each. The Trustee shall hold the Class 1-A4 A2 Cap Agreement and the Class 1-A5 Cap Agreement as an asset in the Class 1-A4 A2 Reserve Fund and the Class 1-A5 Reserve Fund, respectively. The Class 1-A4 A2 Reserve Fund and the Class 1-A5 Reserve Fund shall each be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation other moneys of the Trustee held pursuant to this Agreement. The Class 1-A4 A2 Reserve Fund and the Class 1-A5 Reserve Fund shall not be an asset of any REMIC or the Trust Fund established hereby. The Trustee shall deposit promptly upon receipt in the Class 1-A4 A2 Reserve Fund and the Class 1-A5 Reserve Fund any amounts received from the Class 1-A4 A2 Cap Agreement and the Class 1-A5 Cap Agreement, respectively.
(b) On each Distribution Date, the Trustee, on behalf of the Supplemental Interest Trust, shall distribute amounts on deposit in the Class 1-A4 A2 Reserve Fund, first, to the Holders of the Class 1-A4 A2 Certificates, in an amount up to any Basis Risk Shortfalls thereon and second, to the Holders of the Class 1-A4 A2 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls thereon. Any remaining amounts shall be retained in the Class 1-A4 A2 Reserve Fund for distribution on future Distribution Dates.
(c) On each Distribution Date, the Trustee, on behalf of the Supplemental Interest Trust, shall distribute amounts on deposit in the Class 1-A5 Reserve Fund, first, to the Holders of the Class 1-A5 Certificates, in an amount up to any Basis Risk Shortfalls thereon and second, to the Holders of the Class 1-A5 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls thereon. Any remaining amounts shall be retained in the Class 1-A5 Reserve Fund for distribution on future Distribution Dates.
(d) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 1-A4 A2 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 1-A4 A2 Reserve Fund and any future amounts payable under the Class 1-A4 A2 Cap Agreement shall be distributed to the Class X Certificateholder.
(de) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 1-A5 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 1-A5 Reserve Fund and any future amounts payable under the Class 1-A5 Cap Agreement shall be distributed to the Class X Certificateholder.
(f) Funds in the Class 1-A4 A2 Reserve Fund and the Class 1-A5 Reserve Fund shall be invested in Eligible Investments. The Class X Certificates shall evidence ownership of the Class 1-A4 A2 Reserve Fund and the Class 1-A5 Reserve Fund for federal income tax purposes and LBH on behalf of the Holders thereof shall direct the Trustee, in writing, as to investment of amounts on deposit therein. LBH shall be liable for any losses incurred on such investments. In the absence of written instructions from LBH as to investment of funds on deposit in the Class 1-A4 A2 Reserve Fund and the Class 1-A5 Reserve Fund, such funds shall remain uninvested. The Trustee shall account for the Supplemental Interest Trust as a disregarded entity as long as there is a single holder of the Class X Certificates and, in no event, as an asset of any REMIC created pursuant to this Agreement.
(e) For federal income tax purposes, the Trustee shall treat the holders of the Class 1-A4 A2 Certificates and the Class 1-A5 Certificates as having entered into a notional principal contract with the holders of the Class X Certificates. Pursuant to such notional principal contract, all holders of the Class X Certificates shall be treated as having agreed to pay Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls to the holders of the Class 1-A4 A2 Certificates and the Class 1-A5 Certificates. Any payments to the Class 1-A4 A2 Certificates and the Class 1-A5 Certificates in light of the foregoing shall not be payments with respect to a “regular interest” in a REMIC within the meaning of Code Section 860G(a)(1). Notwithstanding the priority and sources of payments set forth in Article V hereof or otherwise, the Trustee shall account for all distributions on the Class 1-A4 A2 Certificates and the Class 1-A5 Certificates as set forth in this section. For purposes of providing tax information reporting with respect to the Class 1-A4 A2 Certificates and the Class 1-A5 Certificates, the Trustee shall treat the notional principal contract described in this paragraph as having a value equal to the Notional Principal Contract Value as of the Closing Date.
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The Reserve Funds. (a) On the Closing Date, the Trustee shall establish and maintain in the name of the Trustee, in the Supplemental Interest Trust for the benefit of the holders of the Class 1-A4 A1 and Class X Certificates, the Class 1-A4 A1 Reserve Fund, into which the Depositor shall deposit $1,000. The Trustee shall hold the Class 1-A4 A1 Cap Agreement as an asset in the Class 1-A4 A1 Reserve Fund. The Class 1-A4 A1 Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation other moneys of the Trustee held pursuant to this Agreement. The Class 1-A4 A1 Reserve Fund shall not be an asset of any REMIC or the Trust Fund established hereby. The Trustee shall deposit promptly upon receipt in the Class 1-A4 Reserve Fund any amounts received from the Class 1-A4 Cap Agreement.
(b) On each Distribution Date, the Trustee, Trustee on behalf of the Supplemental Interest Trust, Trust shall distribute amounts on deposit in the Class 1-A4 A1 Reserve Fund, first, to the Holders of the Class 1-A4 A1 Certificates, in an amount up to any Basis Risk Shortfalls thereon on the Class 1-A1 Certificates and second, to the Holders of the Class 1-A4 A1 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls thereonon the Class 1-A1 Certificates. Any remaining amounts shall be retained in the Class 1-A4 A1 Reserve Fund for distribution on future Distribution Dates.
(c) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 1-A4 A1 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 1-A4 A1 Reserve Fund and any future amounts payable under the Class 1-A4 A1 Cap Agreement shall be distributed to the Class X Certificateholder.
(d) On the Closing Date, the Trustee shall establish and maintain in the name of the Trustee, in the Supplemental Interest Trust for the benefit of the holders of the Class 1-A6 and Class X Certificates, the Class 1-A6 Reserve Fund, into which the Depositor shall deposit $1,000. The Trustee shall hold the Class 1-A6 Cap Agreement as an asset in the Class 1-A6 Reserve Fund. The Class 1-A6 Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation other moneys of the Trustee held pursuant to this Agreement. The Class 1-A6 Reserve Fund shall not be an asset of any REMIC or the Trust Fund established hereby.
(e) On each Distribution Date, the Trustee on behalf of the Supplemental Interest Trust shall distribute amounts on deposit in the Class 1-A6 Reserve Fund, first, to the Holders of the Class 1-A6 Certificates, in an amount up to any Basis Risk Shortfalls on the Class 1-A6 Certificates and second, to the Holders of the Class 1-A6 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls on the Class 1-A6 Certificates. Any remaining amounts shall be retained in the Class 1-A6 Reserve Fund for distribution on future Distribution Dates.
(f) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 1-A6 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 1-A6 Reserve Fund and any future amounts payable under the Class 1-A6 Cap Agreement shall be distributed to the Class X Certificateholder.
(g) On the Closing Date, the Trustee shall establish and maintain in the name of the Trustee, in the Supplemental Interest Trust for the benefit of the holders of the Class 1-A7 and Class X Certificates, the Class 1-A7 Reserve Fund, into which the Depositor shall deposit $1,000. The Trustee shall hold the Class 1-A7 Cap Agreement as an asset in the Class 1-A7 Reserve Fund. The Class 1-A7 Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation other moneys of the Trustee held pursuant to this Agreement. The Class 1-A7 Reserve Fund shall not be an asset of any REMIC or the Trust Fund established hereby.
(h) On each Distribution Date, the Trustee on behalf of the Supplemental Interest Trust shall distribute amounts on deposit in the Class 1-A7 Reserve Fund, first, to the Holders of the Class 1-A7 Certificates, in an amount up to any Basis Risk Shortfalls on the Class 1-A7 Certificates and second, to the Holders of the Class 1-A7 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls on the Class 1-A7 Certificates. Any remaining amounts shall be retained in the Class 1-A7 Reserve Fund for distribution on future Distribution Dates.
(i) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 1-A7 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 1-A7 Reserve Fund and any future amounts payable under the Class 1-A7 Cap Agreement shall be distributed to the Class X Certificateholder.
(j) Funds in the Class 1-A4 A1 Reserve Fund, Class 1-A6 Reserve Fund and Class 1-A7 Reserve Fund shall be invested in Eligible Investments. The Class X Certificates shall evidence ownership of the Class 1-A4 A1 Reserve Fund, Class 1-A6 Reserve Fund and Class 1-A7 Reserve Fund for federal income tax purposes and LBH on behalf of the Holders thereof shall direct the Trustee, in writing, as to investment of amounts on deposit therein. LBH shall be liable for any losses incurred on such investments. In the absence of written instructions from LBH as to investment of funds on deposit in the Class 1-A4 A1 Reserve Fund, Class 1-A6 Reserve Fund or Class 1-A7 Reserve Fund, such funds shall remain uninvested. The Trustee shall account for the Supplemental Interest Trust as a disregarded entity as long as there is a single holder of the Class X Certificates and, in no event, as an asset of any REMIC created pursuant to this Agreement.
(ek) For federal income tax purposes, the Trustee shall treat the holders of the Class 1-A4 A1, Class 1-A6 and Class 1-A7 Certificates as having entered into a notional principal contract with the holders of the Class X Certificates. Pursuant to such notional principal contract, all holders of the Class X Certificates shall be treated as having agreed to pay Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls to the holders of the Class 1-A4 A1, Class 1-A6 and Class 1-A7 Certificates. Any payments to the Class 1-A4 A1, Class 1-A6 and Class 1-A7 Certificates in light of the foregoing shall not be payments with respect to a “regular interest” in a REMIC within the meaning of Code Section 860G(a)(1). Notwithstanding the priority and sources of payments set forth in Article V hereof or otherwise, the Trustee shall account for all distributions on the Class 1-A4 A1, Class 1-A6 and Class 1-A7 Certificates as set forth in this section. For purposes of providing tax information reporting with respect to the Class 1-A4 A1, Class 1-A6 and Class 1-A7 Certificates, the Trustee shall treat the notional principal contract described in this paragraph as having a value equal to the Notional Principal Contract Value of $4,914.81, $7,401.14 and $31,946.29, respectively, as of the Closing Date.
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The Reserve Funds. (a) On the Closing Date, the Trustee shall establish and maintain in the name of the Trustee, in the Supplemental Interest Trust for the benefit of the holders of the Class 1-A4 A6 and Class X Certificates, the Class 1-A4 A6 Reserve Fund, into which the Depositor shall deposit $1,000. The Trustee shall hold the Class 1-A4 A6 Cap Agreement as an asset in the Class 1-A4 A6 Reserve Fund. The Class 1-A4 A6 Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation other moneys of the Trustee held pursuant to this Agreement. The Class 1-A4 A6 Reserve Fund shall not be an asset of any REMIC or the Trust Fund established hereby. The Trustee shall deposit promptly upon receipt in the Class 1-A4 Reserve Fund any amounts received from the Class 1-A4 Cap Agreement.
(b) On each Distribution Date, the Trustee, Trustee on behalf of the Supplemental Interest Trust, Trust shall distribute amounts on deposit in the Class 1-A4 A6 Reserve Fund, first, to the Holders of the Class 1-A4 A6 Certificates, in an amount up to any Basis Risk Shortfalls thereon and second, to the Holders of the Class 1-A4 A6 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls thereon. Any remaining amounts shall be retained in the Class 1-A4 A6 Reserve Fund for distribution on future Distribution Dates.
(c) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 1-A4 A6 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 1-A4 A6 Reserve Fund and any future amounts payable under the Class 1-A4 A6 Cap Agreement shall be distributed to the Class X Certificateholder.
(d) On the Closing Date, the Trustee shall establish and maintain in the name of the Trustee, in the Supplemental Interest Trust for the benefit of the holders of the Class 1-A8 and Class X Certificates, the Class 1-A8 Reserve Fund, into which the Depositor shall deposit $1,000. The Trustee shall hold the Class 1-A8 Cap Agreement as an asset in the Class 1-A8 Reserve Fund. The Class 1-A8 Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation other moneys of the Trustee held pursuant to this Agreement. The Class 1-A8 Reserve Fund shall not be an asset of any REMIC or the Trust Fund established hereby.
(e) On each Distribution Date, the Trustee on behalf of the Supplemental Interest Trust shall distribute amounts on deposit in the Class 1-A8 Reserve Fund, first, to the Holders of the Class 1-A8 Certificates, in an amount up to any Basis Risk Shortfalls thereon and second, to the Holders of the Class 1-A8 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls thereon. Any remaining amounts shall be retained in the Class 1-A8 Reserve Fund for distribution on future Distribution Dates.
(f) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 1-A8 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 1-A8 Reserve Fund and any future amounts payable under the Class 1-A8 Cap Agreement shall be distributed to the Class X Certificateholder.
(g) Funds in the Class 1-A4 A6 Reserve Fund and Class 1-A8 Reserve Fund shall be invested in Eligible Investments. The Class X Certificates shall evidence ownership of the Class 1-A4 A1 Reserve Fund and Class 1-A8 Reserve Fund for federal income tax purposes and LBH on behalf of the Holders thereof shall direct the Trustee, in writing, as to investment of amounts on deposit therein. LBH shall be liable for any losses incurred on such investments. In the absence of written instructions from LBH as to investment of funds on deposit in the Class 1-A4 A6 Reserve Fund or Class 1-A8 Reserve Fund, such funds shall remain uninvested. The Trustee shall account for the Supplemental Interest Trust as a disregarded entity as long as there is a single holder of the Class X Certificates and, in no event, as an asset of any REMIC created pursuant to this Agreement.
(e) For federal income tax purposes, the Trustee shall treat the holders of the Class 1-A4 A6 and Class 1-A8 Certificates as having entered into a notional principal contract with the holders of the Class X Certificates. Pursuant to such notional principal contract, all holders of the Class X Certificates shall be treated as having agreed to pay Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls to the holders of the Class 1-A4 A6 and Class 1-A8 Certificates. Any payments to the Class 1-A4 A6 and Class 1-A8 Certificates in light of the foregoing shall not be payments with respect to a “regular interest” in a REMIC within the meaning of Code Section 860G(a)(1). Notwithstanding the priority and sources of payments set forth in Article V hereof or otherwise, the Trustee shall account for all distributions on the Class 1-A4 A6 and Class 1-A8 Certificates as set forth in this section. For purposes of providing tax information reporting with respect to the Class 1-A4 A6 and Class 1-A8 Certificates, the Trustee shall treat the notional principal contract described in this paragraph as having a value equal to the Notional Principal Contract Value of $1,492.83 and $2,472.44, respectively, as of the Closing Date.
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The Reserve Funds. (a) On the Closing Date, the Trustee shall establish and maintain in the name of the Trustee, in the Supplemental Interest Trust for the benefit of the holders of the Class 1-A4 A1 and Class X Certificates, the Class 1-A4 A1 Reserve Fund, into which the Depositor shall deposit $1,000. The Trustee shall hold the Class 1-A4 A1 Cap Agreement as an asset in the Class 1-A4 A1 Reserve Fund. The Class 1-A4 A1 Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation other moneys of the Trustee held pursuant to this Agreement. The Class 1-A4 A1 Reserve Fund shall not be an asset of any REMIC or the Trust Fund established hereby. The Trustee shall deposit promptly upon receipt in the Class 1-A4 Reserve Fund any amounts received from the Class 1-A4 Cap Agreement.
(b) On each Distribution Date, the Trustee, Trustee on behalf of the Supplemental Interest Trust, Trust shall distribute amounts on deposit in the Class 1-A4 A1 Reserve Fund, first, to the Holders of the Class 1-A4 A1 Certificates, in an amount up to any Basis Risk Shortfalls thereon on the Class 1-A1 Certificates and second, to the Holders of the Class 1-A4 A1 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls thereonon the Class 1-A1 Certificates. Any remaining amounts shall be retained in the Class 1-A4 A1 Reserve Fund for distribution on future Distribution Dates.
(c) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 1-A4 A1 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 1-A4 A1 Reserve Fund and any future amounts payable under the Class 1-A4 A1 Cap Agreement shall be distributed to the Class X Certificateholder.
(d) On the Closing Date, the Trustee shall establish and maintain in the name of the Trustee, in the Supplemental Interest Trust for the benefit of the holders of the Class 3-A1 and Class X Certificates, the Class 3-A1 Reserve Fund, into which the Depositor shall deposit $1,000. The Trustee shall hold the Class 3-A1 Cap Agreement as an asset in the Class 3-A1 Reserve Fund. The Class 3-A1 Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation other moneys of the Trustee held pursuant to this Agreement. The Class 3-A1 Reserve Fund shall not be an asset of any REMIC or the Trust Fund established hereby.
(e) On each Distribution Date, the Trustee on behalf of the Supplemental Interest Trust shall distribute amounts on deposit in the Class 3-A1 Reserve Fund, first, to the Holders of the Class 3-A1 Certificates, in an amount up to any Basis Risk Shortfalls on the Class 3-A1 Certificates and second, to the Holders of the Class 3-A1 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls on the Class 3-A1 Certificates. Any remaining amounts shall be retained in the Class 3-A1 Reserve Fund for distribution on future Distribution Dates.
(f) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 3-A1 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 3-A1 Reserve Fund and any future amounts payable under the Class 3-A1 Cap Agreement shall be distributed to the Class X Certificateholder.
(g) Funds in the Class 1-A4 A1 Reserve Fund and Class 3-A1 Reserve Fund shall be invested in Eligible Investments. The Class X Certificates shall evidence ownership of the Class 1-A4 A1 Reserve Fund and Class 3-A1 Reserve Fund for federal income tax purposes and LBH on behalf of the Holders thereof shall direct the Trustee, in writing, as to investment of amounts on deposit therein. LBH shall be liable for any losses incurred on such investments. In the absence of written instructions from LBH as to investment of funds on deposit in the Class 1-A4 A1 Reserve Fund or Class 3-A1 Reserve Fund, such funds shall remain uninvested. The Trustee shall account for the Supplemental Interest Trust as a disregarded entity as long as there is a single holder of the Class X Certificates and, in no event, as an asset of any REMIC created pursuant to this Agreement.
(e) For federal income tax purposes, the Trustee shall treat the holders of the Class 1-A4 A1 and Class 3-A1 Certificates as having entered into a notional principal contract with the holders of the Class X Certificates. Pursuant to such notional principal contract, all holders of the Class X Certificates shall be treated as having agreed to pay Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls to the holders of the Class 1-A4 A1 and Class 3-A1 Certificates. Any payments to the Class 1-A4 A1 and Class 3-A1 Certificates in light of the foregoing shall not be payments with respect to a “regular interest” in a REMIC within the meaning of Code Section 860G(a)(1). Notwithstanding the priority and sources of payments set forth in Article V hereof or otherwise, the Trustee shall account for all distributions on the Class 1-A4 A1 and Class 3-A1 Certificates as set forth in this section. For purposes of providing tax information reporting with respect to the Class 1-A4 A1 and Class 3-A1 Certificates, the Trustee shall treat the notional principal contract described in this paragraph as having a value equal to the Notional Principal Contract Value of $614,248.96 and $607,809.10, respectively, as of the Closing Date.
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The Reserve Funds. (a) On the Closing Date, the Trustee shall establish and maintain in the name of the Trustee, in the Supplemental Interest Trust for the benefit of the holders of the Class 1-A4 A1 and Class X Certificates, the Class 1-A4 A1 Reserve Fund, for the benefit of the holders of the Class 1-A9 and Class X Certificates, the Class 1-A9 Reserve Fund, and for the benefit of the holders of the Class 3-A1 and Class X Certificates, the Class 3-A1 Reserve Fund, into which the Depositor shall deposit $1,0001,000 each. The Trustee shall hold the Class 1-A4 A1 Cap Agreement, Class 1-A9 Cap Agreement and the Class 3-A1 Cap Agreement as an asset in the Class 1-A4 A1 Reserve Fund, Class 1-A9 Reserve Fund and the Class 3-A1 Reserve Fund, respectively. The Class 1-A4 A1 Reserve Fund, Class 1-A9 Reserve Fund and the Class 3-A1 Reserve Fund shall each be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation other moneys of the Trustee held pursuant to this Agreement. The Class 1-A4 A1 Reserve Fund, Class 1-A9 Reserve Fund and the Class 3-A1 Reserve Fund shall not be an asset of any REMIC or the Trust Fund established hereby. The Trustee shall deposit promptly upon receipt in the Class 1-A4 A1 Reserve Fund, Class 1-A9 Reserve Fund and the Class 3-A1 Reserve Fund any amounts received from the Class 1-A4 A1 Cap Agreement, Class 1-A9 Cap Agreement and the Class 3-A1 Cap Agreement, respectively.
(b) On each Distribution Date, the Trustee, on behalf of the Supplemental Interest Trust, shall distribute amounts on deposit in the Class 1-A4 A1 Reserve Fund, first, to the Holders of the Class 1-A4 A1 Certificates, in an amount up to any Basis Risk Shortfalls thereon and second, to the Holders of the Class 1-A4 A1 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls thereon. Any remaining amounts shall be retained in the Class 1-A4 A1 Reserve Fund for distribution on future Distribution Dates.
(c) On each Distribution Date, the Trustee, on behalf of the Supplemental Interest Trust, shall distribute amounts on deposit in the Class 1-A9 Reserve Fund, first, to the Holders of the Class 1-A9 Certificates, in an amount up to any Basis Risk Shortfalls thereon and second, to the Holders of the Class 1-A9 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls thereon. Any remaining amounts shall be retained in the Class 1-A9 Reserve Fund for distribution on future Distribution Dates.
(d) On each Distribution Date, the Trustee, on behalf of the Supplemental Interest Trust, shall distribute amounts on deposit in the Class 3-A1 Reserve Fund, first, to the Holders of the Class 3-A1 Certificates, in an amount up to any Basis Risk Shortfalls thereon and second, to the Holders of the Class 3-A1 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls thereon. Any remaining amounts shall be retained in the Class 3-A1 Reserve Fund for distribution on future Distribution Dates.
(e) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 1-A4 A1 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 1-A4 A1 Reserve Fund and any future amounts payable under the Class 1-A4 A1 Cap Agreement shall be distributed to the Class X Certificateholder.
(df) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 1-A9 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 1-A9 Reserve Fund and any future amounts payable under the Class 1-A9 Cap Agreement shall be distributed to the Class X Certificateholder.
(g) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 3-A1 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 3-A1 Reserve Fund and any future amounts payable under the Class 3-A1 Cap Agreement shall be distributed to the Class X Certificateholder.
(h) Funds in the Class 1-A4 A1 Reserve Fund, Class 1-A9 Reserve Fund and the Class 3-A1 Reserve Fund shall be invested in Eligible Investments. The Class X Certificates shall evidence ownership of the Class 1-A4 A1 Reserve Fund, Class 1-A9 Reserve Fund and the Class 3-A1 Reserve Fund for federal income tax purposes and LBH on behalf of the Holders thereof shall direct the Trustee, in writing, as to investment of amounts on deposit therein. LBH shall be liable for any losses incurred on such investments. In the absence of written instructions from LBH as to investment of funds on deposit in the Class 1-A4 A1 Reserve Fund, Class 1-A9 Reserve Fund and the Class 3-A1 Reserve Fund, such funds shall remain uninvested. The Trustee shall account for the Supplemental Interest Trust as a disregarded entity as long as there is a single holder of the Class X Certificates and, in no event, as an asset of any REMIC created pursuant to this Agreement.
(ei) For federal income tax purposes, the Trustee shall treat the holders of the Class 1-A4 A1 Certificates, Class 1-A9 Certificates and the Class 3-A1 Certificates as having entered into a notional principal contract with the holders of the Class X Certificates. Pursuant to such notional principal contract, all holders of the Class X Certificates shall be treated as having agreed to pay Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls to the holders of the Class 1-A4 A1 Certificates, Class 1-A9 Certificates and the Class 3-A1 Certificates. Any payments to the Class 1-A4 A1 Certificates, Class 1-A9 Certificates and the Class 3-A1 Certificates in light of the foregoing shall not be payments with respect to a “regular interest” in a REMIC within the meaning of Code Section 860G(a)(1). Notwithstanding the priority and sources of payments set forth in Article V hereof or otherwise, the Trustee shall account for all distributions on the Class 1-A4 A1 Certificates, Class 1-A9 Certificates and the Class 3-A1 Certificates as set forth in this section. For purposes of providing tax information reporting with respect to the Class 1-A4 A1 Certificates, Class 1-A9 Certificates and the Class 3-A1 Certificates, the Trustee shall treat the notional principal contract described in this paragraph as having a value equal to the Notional Principal Contract Value as of the Closing Date.
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The Reserve Funds. (a) On the Closing Date, the Trustee shall establish and maintain in the name of the Trustee, in the Supplemental Interest Trust for the benefit of the holders of the Class 1-A4 A1 and Class X Certificates, the Class 1-A4 A1 Reserve Fund, into which the Depositor shall deposit $1,000. The Trustee shall hold the Class 1-A4 A1 Cap Agreement as an asset in the Class 1-A4 A1 Reserve Fund. The Class 1-A4 A1 Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation other moneys of the Trustee held pursuant to this Agreement. The Class 1-A4 A1 Reserve Fund shall not be an asset of any REMIC or the Trust Fund established hereby. The Trustee shall deposit promptly upon receipt in the Class 1-A4 Reserve Fund any amounts received from the Class 1-A4 Cap Agreement.
(b) On each Distribution Date, the Trustee, Trustee on behalf of the Supplemental Interest Trust, Trust shall distribute amounts on deposit in the Class 1-A4 A1 Reserve Fund, first, to the Holders of the Class 1-A4 A1 Certificates, in an amount up to any Basis Risk Shortfalls thereon on the Class 1-A1 Certificates and second, to the Holders of the Class 1-A4 A1 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls thereonon the Class 1-A1 Certificates. Any remaining amounts shall be retained in the Class 1-A4 A1 Reserve Fund for distribution on future Distribution Dates.
(c) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 1-A4 A1 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 1-A4 A1 Reserve Fund and any future amounts payable under the Class 1-A4 A1 Cap Agreement shall be distributed to the Class X Certificateholder.
(d) On the Closing Date, the Trustee shall establish and maintain in the name of the Trustee, in the Supplemental Interest Trust for the benefit of the holders of the Class 2-A1 and Class X Certificates, the Class 2-A1 Reserve Fund, into which the Depositor shall deposit $1,000. The Trustee shall hold the Class 2-A1 Cap Agreement as an asset in the Class 2-A1 Reserve Fund. The Class 2-A1 Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation other moneys of the Trustee held pursuant to this Agreement. The Class 2-A1 Reserve Fund shall not be an asset of any REMIC or the Trust Fund established hereby.
(e) On each Distribution Date, the Trustee on behalf of the Supplemental Interest Trust shall distribute amounts on deposit in the Class 2-A1 Reserve Fund, first, to the Holders of the Class 2-A1 Certificates, in an amount up to any Basis Risk Shortfalls on the Class 2-A1 Certificates and second, to the Holders of the Class 2-A1 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls on the Class 2-A1 Certificates. Any remaining amounts shall be retained in the Class 2-A1 Reserve Fund for distribution on future Distribution Dates.
(f) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 2-A1 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 2-A1 Reserve Fund and any future amounts payable under the Class 2-A1 Cap Agreement shall be distributed to the Class X Certificateholder.
(g) On the Closing Date, the Trustee shall establish and maintain in the name of the Trustee, in the Supplemental Interest Trust for the benefit of the holders of the Class 3-A1 and Class X Certificates, the Class 3-A1 Reserve Fund, into which the Depositor shall deposit $1,000. The Trustee shall hold the Class 3-A1 Cap Agreement as an asset in the Class 3-A1 Reserve Fund. The Class 3-A1 Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation other moneys of the Trustee held pursuant to this Agreement. The Class 3-A1 Reserve Fund shall not be an asset of any REMIC or the Trust Fund established hereby.
(h) On each Distribution Date, the Trustee on behalf of the Supplemental Interest Trust shall distribute amounts on deposit in the Class 3-A1 Reserve Fund, first, to the Holders of the Class 3-A1 Certificates, in an amount up to any Basis Risk Shortfalls on the Class 3-A1 Certificates and second, to the Holders of the Class 3-A1 Certificates, in an amount up to any Unpaid Basis Risk Shortfalls on the Class 3-A1 Certificates. Any remaining amounts shall be retained in the Class 3-A1 Reserve Fund for distribution on future Distribution Dates.
(i) Upon the earliest to occur of (i) the Distribution Date on which the Class Principal Amount of the Class 3-A1 Certificates is reduced to zero, (ii) a Section 7.01(c) Purchase Event or (iii) a Trust Fund Termination Event, any amounts remaining in the Class 3-A1 Reserve Fund and any future amounts payable under the Class 3-A1 Cap Agreement shall be distributed to the Class X Certificateholder.
(j) Funds in the Class 1-A4 A1 Reserve Fund, Class 2-A1 Reserve Fund and Class 3-A1 Reserve Fund shall be invested in Eligible Investments. The Class X Certificates shall evidence ownership of the Class 1-A4 A1 Reserve Fund, Class 2-A1 Reserve Fund and Class 3-A1 Reserve Fund for federal income tax purposes and LBH on behalf of the Holders thereof shall direct the Trustee, in writing, as to investment of amounts on deposit therein. LBH shall be liable for any losses incurred on such investments. In the absence of written instructions from LBH as to investment of funds on deposit in the Class 1-A4 A1 Reserve Fund, Class 2-A1 Reserve Fund or Class 3-A1 Reserve Fund, such funds shall remain uninvested. The Trustee shall account for the Supplemental Interest Trust as a disregarded entity as long as there is a single holder of the Class X Certificates and, in no event, as an asset of any REMIC created pursuant to this Agreement.
(ek) For federal income tax purposes, the Trustee shall treat the holders of the Class 1-A4 A1, Class 2-A1 and Class 3-A1 Certificates as having entered into a notional principal contract with the holders of the Class X Certificates. Pursuant to such notional principal contract, all holders of the Class X Certificates shall be treated as having agreed to pay Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls to the holders of the Class 1-A4 A1, Class 2-A1 and Class 3-A1 Certificates. Any payments to the Class 1-A4 A1, Class 2-A1 and Class 3-A1 Certificates in light of the foregoing shall not be payments with respect to a “regular interest” in a REMIC within the meaning of Code Section 860G(a)(1). Notwithstanding the priority and sources of payments set forth in Article V hereof or otherwise, the Trustee shall account for all distributions on the Class 1-A4 A1, Class 2-A1 and Class 3-A1 Certificates as set forth in this section. For purposes of providing tax information reporting with respect to the Class 1-A4 A1, Class 2-A1 and Class 3-A1 Certificates, the Trustee shall treat the notional principal contract described in this paragraph as having a value equal to the Notional Principal Contract Value of $10,419.73, $6,357.75 and $4,202.90, respectively, as of the Closing Date.
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