Exhibit 99.8
CAP CONTRACT ADMINISTRATION AGREEMENT
This CAP CONTRACT ADMINISTRATION AGREEMENT, dated as of August 30,
2006 (this "Agreement"), among JPMORGAN CHASE BANK, N.A. ("JPMorgan"), as Cap
Contract Administrator (in such capacity, the "Cap Contract Administrator") and
as Indenture Trustee under the Indenture referred to below (in such capacity,
the "Indenture Trustee"), and COUNTRYWIDE HOME LOANS, INC. ("CHL").
WHEREAS, CHL is a party to an interest rate cap agreement between
CHL and Barclays Bank PLC, as cap counterparty (the "Counterparty"), with a
Trade Date of August 11, 2006 and a reference number of 1326844B (the "Cap
Contract"), a copy of which is attached to this Agreement at Exhibit A;
WHEREAS, CWHEQ Revolving Home Equity Loan Trust, Series 2006-G (the
"Trust") has entered into an Indenture, dated as of August 30, 2006 (the
"Indenture"), between the Trust and the Indenture Trustee;
WHEREAS, simultaneously with the execution and delivery of this
Agreement, CHL is assigning all of its rights, and delegating all of its duties
and obligations (other than its obligation to pay the Fixed Amount (as defined
in the Cap Contract)), under the Cap Contract to the Cap Contract
Administrator, pursuant to the Assignment Agreement, dated as of the date
hereof (the "Assignment Agreement"), among CHL, as assignor, the Cap Contract
Administrator, as assignee, and the Counterparty;
WHEREAS, CHL desires that the Net Payments (as defined below) on
the Cap Contract be distributed to the Indenture Trustee for the benefit of the
Holders of the Benefited Notes to be applied for the purposes specified in the
Indenture and that the Excess Payments (as defined below) on the Cap Contract
be distributed to CHL; and
WHEREAS, CHL and the Indenture Trustee desire to appoint the Cap
Contract Administrator, and the Cap Contract Administrator desires to accept
such appointment, to distribute funds received under the Cap Contract to the
Indenture Trustee and to CHL as provided in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants contained
in this Agreement, and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties agree as follows:
1. Definitions. Capitalized terms used but not otherwise defined in this
Agreement shall have the respective meanings assigned thereto in the Master
Glossary of Defined Terms attached to the Indenture.
Benefited Notes: The Class 2-A Notes.
Calculation Period: With respect to the Cap Contract and any
payment made under such Cap Contract, the related "Calculation Period" as
defined in such Cap Contract.
Controlling Party: As defined in Section 5.
Cap Contract Account: The separate account created and maintained
by the Cap Contract Administrator pursuant to Section 3 with a depository
institution in the name of the Cap Contract Administrator for the benefit of
CHL and the Indenture Trustee on behalf of the Holders of the Benefited Notes
and designated "JPMorgan Chase Bank, N.A. for Countrywide Home Loans, Inc. and
certain registered Holders of Revolving Home Equity Loan Asset-Backed Notes,
Series 2006-G". Funds in the Cap Contract Account shall be held for CHL and for
the Indenture Trustee for the benefit of the Holders of the Benefited Notes as
set forth in this Agreement.
Day Count Fraction: With respect to the Cap Contract and any
Payment Date, the "Floating Rate Day Count Fraction" specified for the
Calculation Period related to such Payment Date in the Cap Contract.
Excess Payment: For any Payment Date, (a) with respect to any
payment received by the Cap Contract Administrator from the Counterparty in
respect of the Cap Contract for such Payment Date (other than any payment in
respect of an early termination of the Cap Contract), an amount equal to the
excess, if any, of such payment over the Net Payment for such Payment Date and
(b) with respect to any payment received by the Cap Contract Administrator from
the Counterparty in respect of an early termination of the Cap Contract
received during the period from and including the immediately preceding Payment
Date to and excluding the day immediately preceding the current Payment Date,
an amount equal to the excess, if any, of such payment over the Net Payment in
respect of such Payment Date.
LIBOR: With respect to the Cap Contract, the "Floating Rate Option"
as defined in the Cap Contract.
Net Payment: For any Payment Date, (a) with respect to any payment
received by the Cap Contract Administrator from the Counterparty in respect of
the Cap Contract for such Payment Date (other than any payment in respect of an
early termination of the Cap Contract), an amount equal to the product of (i)
the excess, if any, of (x) LIBOR, over (y) the related Strike Rate, (ii) the
lesser of (x) the related Notional Balance for such Payment Date and (y) the
Note Principal Balance of the Benefited Notes immediately prior to such Payment
Date and (iii) the Day Count Fraction, and (b) with respect to any payment
received by the Cap Contract Administrator from the Counterparty in respect of
an early termination of the Cap Contract received during the period from and
including the immediately preceding Payment Date to and excluding the day
immediately preceding the current Payment Date, an amount equal to the product
of (i) a fraction, the numerator of which is equal to the lesser of (x) the
related Notional Balance for the first Payment Date on or after the early
termination of the Cap Contract and (y) the Note Principal Balance of the
Benefited Notes immediately prior to the first Payment Date on or after the
early termination of the Cap Contract, and the denominator of which is equal to
the related Notional Balance for the first Payment Date on or after the early
termination of the Cap Contract and (ii) the amount of such payment received in
respect of such early termination. Notwithstanding the foregoing, in the event
that the Note Principal Balance of the Benefited Notes is reduced to zero prior
to the termination of the Cap Contract, the Net Payment for any
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Payment Date following the Payment Date on which the Note Principal Balance of
the Benefited Notes is reduced to zero shall be zero.
Notional Balance: With respect to the Cap Contract and any Payment
Date, the "Notional Amount" specified for the Calculation Period related to
such Payment Date in the Cap Contract.
Responsible Officer: When used with respect to the Cap Contract
Administrator, any Vice President, any Assistant Vice President, the Secretary,
any Assistant Secretary, any Trust Officer or any other officer of the Cap
Contract Administrator with direct responsibility for the transactions
contemplated hereby and also to whom, with respect to a particular matter, such
matter is referred because of such officer's knowledge of and familiarity with
the particular subject.
Strike Rate: With respect to the Cap Contract and any Payment Date,
the "Cap Rate" specified for the Calculation Period related to such Payment
Date in the Cap Contract.
2. Appointment of Cap Contract Administrator.
CHL and the Indenture Trustee hereby appoint JPMorgan to serve as Cap
Contract Administrator pursuant to this Agreement. The Cap Contract
Administrator accepts such appointment and acknowledges the assignment to it of
CHL's rights under the Cap Contract pursuant to the Assignment Agreement. The
Cap Contract Administrator agrees to exercise the rights referred to above for
the benefit of CHL and the Indenture Trustee on behalf of the Holders of the
Benefited Notes and to perform the duties set forth in this Agreement.
3. Receipt of Funds; Cap Contract Account.
The Cap Contract Administrator hereby agrees to receive, on behalf of
CHL and on behalf of the Indenture Trustee for the benefit of the Holders of
the Benefited Notes, all amounts paid by the Counterparty under the Cap
Contract. The Cap Contract Administrator shall establish and maintain a Cap
Contract Account into which the Cap Contract Administrator shall deposit or
cause to be deposited on the Business Day of receipt, all amounts payable by
the Counterparty under the Cap Contract. All funds deposited in the Cap
Contract Account shall be held for the benefit of CHL and for the Indenture
Trustee for the benefit of the Holders of the Benefited Notes until withdrawn
in accordance with Section 4. The Cap Contract Account shall be an "Eligible
Account" as defined in the Indenture and, if the Indenture is satisfied and
discharged in accordance with its terms prior to the termination of this
Agreement, the Cap Contract Account shall be an account that would otherwise
qualify as an "Eligible Account" under the Indenture had such satisfaction and
discharge not occurred.
Funds in the Cap Contract Account shall remain uninvested.
The Cap Contract Administrator shall give at least 30 days' advance
notice to CHL and the Indenture Trustee of any proposed change of location of
the Cap Contract Account prior to any change thereof.
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4. Calculations; Distribution of Payments; Delivery of Notices.
The Cap Contract Administrator hereby agrees to perform the
calculations necessary to distribute payments in accordance with this Section
4. The Cap Contract Administrator shall perform such calculations based on (x)
the Note Principal Balance of the Benefited Notes provided by the Indenture
Trustee pursuant to the Indenture and (y) the Notional Balances, Day Count
Fractions and values of LIBOR provided by the Counterparty pursuant to the Cap
Contract. The Cap Contract Administrator shall, absent manifest error, be
entitled to rely on information provided by the Indenture Trustee and the
Counterparty.
On the Business Day of receipt of any payment from the Counterparty,
the Cap Contract Administrator shall withdraw the amount of such payment from
the Cap Contract Account and distribute such amounts sequentially, as follows:
(a) first, to the Indenture Trustee, the applicable Net
Payment; and
(b) second, to CHL, the applicable Excess Payment, in
accordance with the following wiring instructions:
Beneficiary Account: BANK OF AMERICA NA-SAN FRANCISCO
FFED: [000000000]
Beneficiary: COUNTRYWIDE HOME LOANS, INC.
A/C: [12352 06200]
The Cap Contract Administrator shall prepare and deliver any notices
required to be delivered under the Cap Contract.
5. Control Rights.
The Controlling Party shall have the right, but not the obligation, to
direct the Cap Contract Administrator with respect to the exercise of any right
under the Cap Contract (such as the right to designate an Early Termination
Date following an Event of Default (each such term as defined in the Cap
Contract). For purposes of this Agreement, the "Controlling Party" shall mean,
(i) if the Note Principal Balance of the Benefited Notes immediately prior to
the most recent Payment Date (or, prior to the first Payment Date, the original
Note Principal Balance) is equal to or greater than 50% of the Notional Balance
as of such Payment Date (or, prior to the first Payment Date, the original
Notional Balance), the Indenture Trustee, and (ii) if the Note Principal
Balance of the Benefited Notes immediately prior to the most recent Payment
Date (or, prior to the first Payment Date, the original Note Principal Balance)
is less than 50% of the Notional Balance as of such Payment Date (or, prior to
the first Payment Date, the original Notional Balance), CHL.
6. Representations and Warranties of the Cap Contract Administrator. The
Cap Contract Administrator represents and warrants as follows:
(a) JPMorgan is duly organized and validly existing under the laws of
the jurisdiction of its organization and has all requisite power
and authority to execute and deliver
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this Agreement and to perform its obligations as Cap Contract
Administrator under this Agreement.
(b) The execution, delivery and performance of this Agreement by
JPMorgan as Cap Contract Administrator has been duly authorized
by JPMorgan.
(c) This Agreement has been duly executed and delivered by JPMorgan
as Cap Contract Administrator and is enforceable against JPMorgan
in accordance with its terms, except as enforceability may be
affected by bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or
affecting creditors' rights generally, general equitable
principles (whether considered in a proceeding in equity or at
law).
7. Certain Matters Concerning the Cap Contract Administrator.
(a) The Cap Contract Administrator shall undertake to perform such
duties and only such duties as are specifically set forth in this
Agreement.
(b) No provision of this Agreement shall be construed to relieve the
Cap Contract Administrator from liability for its own grossly
negligent action, its own gross negligent failure to act or its
own misconduct, its grossly negligent failure to perform its
obligations in compliance with this Agreement, or any liability
that would be imposed by reason of its willful misfeasance or bad
faith; provided that:
(i) the duties and obligations of the Cap Contract
Administrator shall be determined solely by the express
provisions of this Agreement, the Cap Contract
Administrator shall not be liable, individually or as Cap
Contract Administrator, except for the performance of such
duties and obligations as are specifically set forth in
this Agreement, no implied covenants or obligations shall
be read into this Agreement against the Cap Contract
Administrator and the Cap Contract Administrator may
conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon
any certificates or opinions furnished to the Cap Contract
Administrator and conforming to the requirements of this
Agreement that it reasonably believed in good faith to be
genuine and to have been duly executed by the proper
authorities respecting any matters arising hereunder;
(ii) the Cap Contract Administrator shall not be liable,
individually or as Cap Contract Administrator, for an
error of judgment made in good faith by a Responsible
Officer or Responsible Officers of the Cap Contract
Administrator, unless the Cap Contract Administrator was
grossly negligent or acted in bad faith or with willful
misfeasance; and
(iii) the Cap Contract Administrator shall not be liable,
individually or as Cap Contract Administrator, with
respect to any action taken, suffered or omitted to be
taken by it in good faith in accordance with the direction
of
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the Controlling Party, or exercising any power conferred
upon the Cap Contract Administrator under this Agreement.
(c) Except as otherwise provided in Sections 7(a) and 7(b):
(i) the Cap Contract Administrator may request and rely upon
and shall be protected in acting or refraining from acting
upon any resolution, officer's certificate, certificate of
auditors or any other certificate, statement, instrument,
opinion, report, notice, request, consent, order,
appraisal, bond or other paper or document believed by it
to be genuine and to have been signed or presented by the
proper party or parties;
(ii) the Cap Contract Administrator may consult with counsel
and any opinion of counsel shall be full and complete
authorization and protection in respect of any action
taken or suffered or omitted by it hereunder in good faith
and in accordance with such opinion of counsel;
(iii) the Cap Contract Administrator shall not be liable,
individually or as Cap Contract Administrator, for any
action taken, suffered or omitted by it in good faith and
believed by it to be authorized or within the discretion
or rights or powers conferred upon it by this Agreement;
(iv) the Cap Contract Administrator shall not be bound to make
any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond or
other paper or document, unless requested in writing so to
do by CHL or the Indenture Trustee; provided, however,
that if the payment within a reasonable time to the Cap
Contract Administrator of the costs, expenses or
liabilities likely to be incurred by it in the making of
such investigation is, in the opinion of the Cap Contract
Administrator not reasonably assured to the Cap Contract
Administrator by CHL and/or the Indenture Trustee, the Cap
Contract Administrator may require reasonable indemnity
against such expense, or liability from CHL and/or the
Indenture Trustee, as the case may be, as a condition to
taking any such action; and
(v) the Cap Contract Administrator shall not be required to
expend its own funds or otherwise incur any financial
liability in the performance of any of its duties
hereunder if it shall have reasonable grounds for
believing that repayment of such funds or adequate
indemnity against such liability is not assured to it.
(d) CHL covenants and agrees to pay or reimburse the Cap Contract
Administrator, upon its request, for all reasonable expenses and
disbursements incurred or made by the Cap Contract Administrator
in accordance with any of the provisions of this Agreement except
any such expense or disbursement as may arise from its
negligence, bad faith or willful misconduct. The Cap Contract
Administrator and
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any director, officer, employee or agent of the Cap Contract
Administrator shall be indemnified by CHL and held harmless
against any loss, liability or expense incurred in connection
with any legal action relating to this Agreement, or in
connection with the performance of any of the Cap Contract
Administrator's duties hereunder, other than any loss, liability
or expense incurred by reason of willful misfeasance, bad faith
or negligence in the performance of any of the Cap Contract
Administrator's duties hereunder. Such indemnity shall survive
the termination of this Agreement or the resignation of the Cap
Contract Administrator hereunder. Notwithstanding anything to the
contrary in this Section 7(d), any expenses, disbursements,
losses or liabilities of the Cap Contract Administrator or any
director, officer, employee or agent thereof that are made or
incurred as a result of any request, order or direction of any
Noteholders made to the Indenture Trustee as contemplated by
Section 5.12 of the Indenture and consequently made to the Cap
Contract Administrator by the Indenture Trustee shall be payable
by the Indenture Trustee out of the security or indemnity
provided by any such Noteholders pursuant to Section 6.01(c)(5)
of the Indenture.
(e) Upon the resignation of JPMorgan as Indenture Trustee in
accordance with the Indenture, (i) JPMorgan shall resign and be
discharged from its duties as Cap Contract Administrator
hereunder and (ii) the Person that succeeds JPMorgan as Indenture
Trustee shall be appointed as successor Cap Contract
Administrator hereunder upon its execution, acknowledgement and
delivery of the instrument accepting such appointment in
accordance with Section 6.11 of the Indenture, whereupon the
duties of the Cap Contract Administrator hereunder shall pass to
such Person. In addition, upon the appointment of a successor
Indenture Trustee under the Indenture, such successor Indenture
Trustee shall succeed to the rights of the Indenture Trustee
hereunder.
8. Miscellaneous.
(a) This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.
(b) Each of JPMorgan and CHL hereby irrevocably waives, to the
fullest extent permitted by applicable law, any and all right to
trial by jury in any legal proceedings arising out of or relating
to this Agreement.
(c) This Agreement shall terminate upon the termination of the Cap
Contract and the disbursement by the Cap Contract Administrator
of all funds received under the Cap Contract to CHL and the
Indenture Trustee for the benefit of the Holders of the Benefited
Notes.
(d) This Agreement may be amended, supplemented or modified in
writing by the parties hereto.
(e) This Agreement may be executed by one or more of the parties to
this Agreement on any number of separate counterparts (including
by facsimile transmission), and
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all such counterparts taken together shall be deemed to
constitute one and the same instrument.
(f) Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction.
(g) The representations and warranties made by the parties to this
Agreement shall survive the execution and delivery of this
Agreement. No act or omission on the part of any party hereto
shall constitute a waiver of any such representation or warranty.
(h) The article and section headings in this Agreement are for
convenience of reference only, and shall not limit or otherwise
affect the meaning of this Agreement.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the parties have caused this Agreement to
be duly executed and delivered as of the day and year first above written.
JPMORGAN CHASE BANK, N.A.,
not in its individual capacity but solely as Cap
Contract Administrator
By: /s/ Xxxxx Xxxxxxxxxx
---------------------------------------
Name: Xxxxx Xxxxxxxxxx
Title: Attorney-In-Fact
JPMORGAN CHASE BANK, N.A.,
not in its individual capacity but solely as
Indenture Trustee
By: /s/ Xxxxx Xxxxxxxxxx
---------------------------------------
Name: Xxxxx Xxxxxxxxxx
Title: Attorney-In-Fact
COUNTRYWIDE HOME LOANS, INC.
By: /s/ Xxxxxx Xxxxx
---------------------------------------
Name: Xxxxxx Xxxxx
Title: Executive Vice President
ACKNOWLEDGED AND AGREED:
CWHEQ REVOLVING HOME EQUITY LOAN TRUST, Series 2006-G
By: Wilmington Trust Company,
not in its individual capacity but
solely as Owner Trustee
By: /s/ Xxxxxxxx X. Xxxxx
---------------------------------------------
Name: Xxxxxxxx X. Xxxxx
Title: Vice President
EXHIBIT A
CAP CONTRACT
[See Exhibit I]
A-1
