Exhibit 99.7
EXECUTION COPY
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ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT
among
XXXXXXX XXXXX MORTGAGE COMPANY,
as Assignor
GS MORTGAGE SECURITIES CORP.,
as Assignee
and
SUNTRUST MORTGAGE, INC.,
as Servicer
Dated as of
January 27, 2006
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ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT
ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT (this "Assignment
Agreement") made this 27th day of January, 2006, among SunTrust Mortgage, Inc.
(the "Servicer"), GS Mortgage Securities Corp., as assignee (the "Assignee")
and Xxxxxxx Sachs Mortgage Company, as assignor (the "Assignor").
WHEREAS, the Assignor and the Servicer have entered into the Amended
and Restated Flow Seller's Warranties and Servicing Agreement, dated as of
December 1, 2005 (the "Servicing Agreement") pursuant to which the Servicer
sold certain mortgage loans listed on the mortgage loan schedule attached as
an exhibit to the Servicing Agreement;
WHEREAS, the Assignee has agreed on certain terms and conditions to
purchase from the Assignor certain of the mortgage loans (the "Mortgage
Loans"), which are subject to the provisions of the Servicing Agreement and
are listed on the mortgage loan schedule attached as Exhibit 1 hereto (the
"Mortgage Loan Schedule"); and
WHEREAS, pursuant to a Master Servicing and Trust Agreement, dated as
of January 1, 2006 (the "Trust Agreement"), among GS Mortgage Securities
Corp., as depositor, U.S. Bank National Association, as trustee (the
"Trustee"), Deutsche Bank National Trust Company and JPMorgan Chase Bank,
N.A., as custodians and JPMorgan Chase Bank, N.A., as master servicer (in such
capacity, the "Master Servicer") and securities administrator (in such
capacity, the "Securities Administrator"), the Assignee will transfer the
Mortgage Loans to the Trustee, together with the Assignee's rights under the
Servicing Agreement, to the extent relating to the Mortgage Loans (other than
the rights of the Assignor (and if applicable its affiliates, officers,
directors and agents) to indemnification thereunder).
NOW THEREFORE, in consideration of the mutual promises contained
herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:
1. Assignment and Assumption.
(a) The Assignor hereby assigns to the Assignee all of its right,
title and interest in and to the Mortgage Loans and the Servicing Agreement,
to the extent relating to the Mortgage Loans (other than the rights of the
Assignor (and if applicable its affiliates, officers, directors and agents) to
indemnification thereunder) from and after the date hereof), and the Assignee
hereby assumes all of the Assignor's obligations under the Servicing
Agreement, to the extent relating to the Mortgage Loans, from and after the
date hereof. The Servicer hereby acknowledges such assignment and assumption
and hereby agrees to the release of the Assignor from any obligations under
the Servicing Agreement from and after the date hereof, to the extent relating
to the Mortgage Loans.
(b) The Assignor represents and warrants to the Assignee that the
Assignor has not taken any action which would serve to impair or encumber the
Assignor's ownership interest in the Mortgage Loans since the date of the
Servicing Agreement.
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(c) The Servicer and the Assignor shall have the right to amend,
modify or terminate the Servicing Agreement without the joinder of the
Assignee with respect to mortgage loans not conveyed to the Assignee
hereunder; provided, however, that such amendment, modification or termination
shall not affect or be binding on the Assignee.
2. Accuracy of Servicing Agreement. The Servicer and the Assignor
represent and warrant to the Assignee that (i) attached hereto as Exhibit 2 is
a true, accurate and complete copy of the Servicing Agreement, (ii) the
Servicing Agreement is in full force and effect as of the date hereof, (iii)
the Servicing Agreement has not been amended or modified in any respect and
(iv) no notice of termination has been given to the Servicer under the
Servicing Agreement.
3. Modification of the Servicing Agreement. Only in so far as it
relates to the Mortgage Loans, the Servicer and the Assignor hereby amend the
Servicing Agreement as follows:
(a) the defined term "Custodial Account" in Article I, Section 1.1
will be deleted in its entirety and replaced with the following:
"Custodial Account: The separate Eligible Account or Eligible
Accounts created and maintained pursuant to Section 4.4."
(b) the defined term "Escrow Account" in Article I, Section 1.1 will
be deleted in its entirety and replaced with the following:
"Escrow Account: The separate Eligible Account or Eligible Accounts
created and maintained pursuant to Section 4.6."
(c) a new defined term "Eligible Account" will be added to Article I,
Section 1.1 after the term "Due Period" as follows:
"Eligible Account: An account or accounts maintained with a Qualified
Depository."
(d) the defined term "Repurchase Price" in Article I, Section 1.1
will be deleted in its entirety and replaced with the following:
Repurchase Price: A price equal to (i) the Scheduled Principal
Balance of the Mortgage Loan plus (ii) interest on such Scheduled Principal
Balance at the Mortgage Loan Remittance Rate from the date on which interest
has last been paid and distributed to the Purchaser to the last day of the
month of repurchase, less amounts received or advanced in respect of such
repurchased Mortgage Loan which are being held in the Custodial Account for
distribution in the month of repurchase, to the extent such amounts are
actually paid to the Purchaser upon the repurchase of the related Mortgage
Loan plus (iii) any costs and damages incurred by the trust in the applicable
Securitization Transaction in connection with any violation by the applicable
Mortgage Loan of any predatory or abusive lending law.
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4. Recognition of Assignee. From and after the date hereof, the
Servicer shall note the transfer of the Mortgage Loans to the Assignee in its
books and records, shall recognize the Assignee as the owner of the Mortgage
Loans and shall service the Mortgage Loans for the benefit of the Assignee
pursuant to the Servicing Agreement, the terms of which are incorporated
herein by reference. It is the intention of the Assignor, Servicer and
Assignee that the Servicing Agreement shall be binding upon and inure to the
benefit of the Servicer and the Assignee and their successors and assigns.
5. Representations and Warranties of the Assignee. The Assignee
hereby represents and warrants to the Assignor as follows:
(a) Decision to Purchase. The Assignee represents and warrants that
it is a sophisticated investor able to evaluate the risks and merits of the
transactions contemplated hereby, and that it has not relied in connection
therewith upon any statements or representations of the Assignor or the
Servicer other than those contained in the Servicing Agreement or this
Assignment Agreement.
(b) Authority. The Assignee hereto represents and warrants that it is
duly and legally authorized to enter into this Assignment Agreement and to
perform its obligations hereunder and under the Servicing Agreement.
(c) Enforceability. The Assignee hereto represents and warrants that
this Assignment Agreement has been duly authorized, executed and delivered by
it and (assuming due authorization, execution and delivery thereof by each of
the other parties hereto) constitutes its legal, valid and binding obligation,
enforceable in accordance with its terms, except as such enforcement may be
limited by bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors' rights generally and by general
equitable principles (regardless of whether such enforcement is considered in
a proceeding in equity or at law).
6. Representations and Warranties of the Assignor. The Assignor
hereby represents and warrants to the Assignee as follows:
(a) Organization. The Assignor has been duly organized and is validly
existing as a limited partnership in good standing under the laws of the State
of New York with full power and authority (corporate and other) to enter into
and perform its obligations under the Servicing Agreement and this Assignment
Agreement.
(b) Enforceability. This Assignment Agreement has been duly executed
and delivered by the Assignor, and, assuming due authorization, execution and
delivery by each of the other parties hereto, constitutes a legal, valid, and
binding agreement of the Assignor, enforceable against it in accordance with
its terms, subject to bankruptcy, insolvency, reorganization, moratorium, or
other similar laws affecting creditors' rights generally and to general
principles of equity regardless of whether enforcement is sought in a
proceeding in equity or at law.
(c) No Consent. The execution, delivery and performance by the
Assignor of this Assignment Agreement and the consummation of the transactions
contemplated hereby do not require the consent or approval of, the giving of
notice to, the registration with, or the taking
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of any other action in respect of, any state, federal or other governmental
authority or agency, except such as has been obtained, given, effected or
taken prior to the date hereof.
(d) Authorization; No Breach. The execution and delivery of this
Assignment Agreement have been duly authorized by all necessary corporate
action on the part of the Assignor; neither the execution and delivery by the
Assignor of this Assignment Agreement, nor the consummation by the Assignor of
the transactions herein contemplated, nor compliance by the Assignor with the
provisions hereof, will conflict with or result in a breach of, or constitute
a default under, any of the provisions of the governing documents of the
Assignor or any law, governmental rule or regulation or any material judgment,
decree or order binding on the Assignor or any of its properties, or any of
the provisions of any material indenture, mortgage, deed of trust, contract or
other instrument to which the Assignor is a party or by which it is bound.
(e) Actions; Proceedings. There are no actions, suits or proceedings
pending or, to the knowledge of the Assignor, threatened, before or by any
court, administrative agency, arbitrator or governmental body (A) with respect
to any of the transactions contemplated by this Assignment Agreement or (B)
with respect to any other matter that in the judgment of the Assignor will be
determined adversely to the Assignor and will, if determined adversely to the
Assignor, materially adversely affect its ability to perform its obligations
under this Assignment Agreement.
7. Additional Representations and Warranties of the Assignor With
Respect to the Mortgage Loans. The Assignor hereby represents and warrants to
the Assignee as follows:
(a) Prior Assignments; Pledges. Except for the sale to the Assignee,
the Assignor has not assigned or pledged any Mortgage Note or the related
Mortgage or any interest or participation therein.
(b) Releases. The Assignor has not satisfied, canceled or
subordinated in whole or in part, or rescinded any Mortgage, and the Assignor
has not released the related Mortgaged Property from the lien of any Mortgage,
in whole or in part, nor has the Assignor executed an instrument that would
effect any such release, cancellation, subordination, or rescission. The
Assignor has not released any Mortgagor, in whole or in part, except in
connection with an assumption agreement or other agreement approved by the
related federal insurer, to the extent such approval was required.
(c) Compliance with Applicable Laws. With respect to each Mortgage
Loan, any and all requirements of any federal, state or local law including,
without limitation, usury, truth-in-lending, real estate settlement
procedures, consumer credit protection, equal credit opportunity, predatory
and abusive lending or disclosure laws applicable to such Mortgage Loan,
including without limitation, any provisions relating to prepayment charges,
have been complied with.
(d) High Cost. No Mortgage Loan is categorized as "High Cost"
pursuant to the then-current Standard & Poor's Glossary for File Format for
LEVELS(R) Version 5.6(c), Appendix E, as revised from time to time and in
effect as of the Original Purchase Date.
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Furthermore, none of the Mortgage Loans sold by the Seller are classified as
(a) a "high cost mortgage" loan under the Home Ownership and Equity Protection
Act of 1994 or (b) a "high cost home," "covered," "high-cost," "high-risk
home," or "predatory" loan under any other applicable state, federal or local
law. (e) Georgia Fair Lending Act. No Mortgage Loan is secured by a property
in the state of Georgia and originated between October 1, 2002 and March 7,
2003.
(f) Credit Reporting. The Assignor will fully furnish, in accordance
with the Fair Credit Reporting Act and its implementing regulations, accurate
and complete information (i.e., favorable and unfavorable) on Mortgagor credit
files to Equifax, Experian and Trans Union Credit Information Company (three
of the credit repositories), on a monthly basis.
(g) Arbitration. With respect to any Mortgage Loan originated on or
after August 1, 2004, neither the related Mortgage nor the related Mortgage
Note requires the Mortgagor to submit to arbitration to resolve any dispute
arising out of or relating in any way to any of the transactions contemplated
by this Assignment Agreement.
(h) Bring Down. To the Assignor's knowledge, with respect to each
Mortgage Loan, no event has occurred from and after the closing date set forth
in such Servicing Agreement to the date hereof that would cause any of the
representations and warranties relating to such Mortgage Loan set forth in
Section 3.2 of the Servicing Agreement to be untrue in any material respect as
of the date hereof as if made on the date hereof. With respect to those
representations and warranties which are made to the best of the Assignor's
knowledge, if it is discovered by the Assignor that the substance of such
representation and warranty is inaccurate, notwithstanding the Assignor's lack
of knowledge with respect to the substance of such representation and
warranty, such inaccuracy shall be deemed a breach of the applicable
representation and warranty.
It is understood and agreed that the representations and warranties
set forth in Sections 6 and 7 shall survive delivery of the respective
mortgage loan documents to the Assignee or its designee and shall inure to the
benefit of the Assignee and its assigns notwithstanding any restrictive or
qualified endorsement or assignment. Upon the discovery by the Assignor or the
Assignee and its assigns of a breach of the foregoing representations and
warranties, the party discovering such breach shall give prompt written notice
to the other parties to this Assignment Agreement, and in no event later than
two (2) Business Days from the date of such discovery. It is understood and
agreed that the obligations of the Assignor set forth in Section 8 to
repurchase or, in limited circumstances, substitute a Mortgage Loan constitute
the sole remedies available to the Assignee and its assigns on their behalf
respecting a breach of the representations and warranties contained in
Sections 6 and 7. It is further understood and agreed that, except as
specifically set forth in Sections 6 and 7, the Assignor shall be deemed not
to have made the representations and warranties in Section 7(h) with respect
to, and to the extent of, representations and warranties made, as to the
matters covered in Section 7(h), by the Servicer in the Servicing Agreement
(or any officer's certificate delivered pursuant thereto).
It is understood and agreed that, with respect to the Mortgage Loans,
the Assignor has made no representations or warranties to the Assignee other
than those contained in Sections
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6 and 7 and no other affiliate of the Assignor has made any representations or
warranties of any kind to the Assignee.
8. Repurchase of Mortgage Loans. Upon discovery or notice of any
breach by the Assignor of any representation, warranty or covenant under this
Assignment Agreement that materially and adversely affects the value of any
Mortgage Loan or the interest of the Assignee therein (it being understood
that any such defect or breach shall be deemed to have materially and
adversely affected the value of the related Mortgage Loan or the interest of
the Assignee therein if the Assignee incurs a loss as a result of such defect
or breach), the Assignee promptly shall request that the Assignor cure such
breach and, if the Assignor does not cure such breach in all material respects
within 60 days from the date on which it is notified of the breach, the
Assignee may enforce the Assignor's obligation hereunder to purchase such
Mortgage Loan from the Assignee at the Repurchase Price as defined in the
Servicing Agreement or, in limited circumstances (as set forth below),
substitute such mortgage loan for a Substitute Mortgage Loan (as defined
below). Notwithstanding the foregoing, however, if such breach is a
Qualification Defect as defined in the Servicing Agreement, such cure or
repurchase must take place within 75 days of the Defect Discovery Date.
The Assignor shall have the option, but is not obligated, to
substitute a Substitute Mortgage Loan for a Mortgage Loan, rather than
repurchase the Mortgage Loan as provided above, by removing such Mortgage Loan
and substituting in its place a Substitute Mortgage Loan or Loans and
providing the Substitution Adjustment Amount, if any, provided that any such
substitution shall be effected not later than 90 days from the date on which
it is notified of the breach.
In the event the Servicer has breached a representation or warranty
under the Servicing Agreement that is substantially identical to, or covers
the same matters as, a representation or warranty breached by the Assignor
hereunder, the Assignee shall first proceed against the Servicer to cure such
breach or purchase such mortgage loan from the Trust. If the Servicer does not
within 60 days after notification of the breach, take steps to cure such
breach (which may include certifying to progress made and requesting an
extension of the time to cure such breach, as permitted under the Servicing
Agreement) or purchase the Mortgage Loan, the Trustee shall be entitled to
enforce the obligations of the Assignor hereunder to cure such breach or to
purchase or substitute for the Mortgage Loan from the Trust.
In addition, the Assignor shall have the option, but is not
obligated, to substitute a Substitute Mortgage Loan for a Mortgage Loan with
respect to which the Servicer has breached a representation and warranty and
is obligated to repurchase such Mortgage Loan under the Servicing Agreement,
by removing such Mortgage Loan and substituting in its place a Substitute
Mortgage Loan or Loans, provided that any such substitution shall be effected
not later than 90 days from the date on which it is notified of the breach.
In the event of any repurchase or substitution of any Mortgage Loan
by the Assignor hereunder, the Assignor shall succeed to the rights of the
Assignee to enforce the obligations of the Servicer to cure any breach or
repurchase such Mortgage Loan under the terms of the Servicing Agreement with
respect to such Mortgage Loan. In the event of a repurchase or substitution of
any Mortgage Loan by the Assignor, the Assignee shall promptly deliver to the
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Assignor or its designee the related Mortgage File and shall assign to the
Assignor all of the Assignee's rights under the Servicing Agreement, but only
insofar as such Servicing Agreement relates to such Mortgage Loan.
Except as specifically set forth herein, the Assignee shall have no
responsibility to enforce any provision of this Assignment Agreement, to
oversee compliance hereof or to take notice of any breach or default thereof.
For purposes of this Section, "Deleted Mortgage Loan" and "Substitute
Mortgage Loan" shall be defined as set forth below.
"Deleted Mortgage Loan" A Mortgage Loan which is to be, pursuant to
this Section 7, replaced or to be replaced by the Assignor with a Substitute
Mortgage Loan.
"Substitute Mortgage Loan" A mortgage loan substituted by the
Assignor for a Deleted Mortgage Loan which must, on the date of such
substitution, (i) have an outstanding principal balance, after deduction of
all scheduled payments due in the month of substitution (or in the case of a
substitution of more than one mortgage loan for a Deleted Mortgage Loan, an
aggregate principal balance), not in excess of the Stated Principal Balance of
the Deleted Mortgage Loan; (ii) be accruing interest at a rate no lower than
and not more than 2% per annum higher than that of the Deleted Mortgage Loan;
(iii) have a remaining term to maturity not greater than and not more than one
year less than that of the Deleted Mortgage Loan; (iv) be of the same type as
the Deleted Mortgage Loan (i.e., fixed rate or adjustable rate with same
periodic rate cap, lifetime rate cap, and index); and (v) comply with each
representation and warranty set forth in Section 3.2 of the Servicing
Agreement.
"Substitution Adjustment Amount" means with respect to any Mortgage
Loan, the amount remitted by GSMC on the applicable Distribution Date which is
the difference between the outstanding principal balance of a Substitute
Mortgage Loan as of the date of substitution and the outstanding principal
balance of the Deleted Mortgage Loan as of the date of substitution.
9. Continuing Effect. Except as contemplated hereby, the Servicing
Agreement shall remain in full force and effect in accordance with their
respective terms.
10. Governing Law.
THIS ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 AND 5-1402 OF THE
GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
11. Notices. Any notices or other communications permitted or
required hereunder or under the Servicing Agreement shall be in writing and
shall be deemed conclusively to have been given if personally delivered at or
mailed by registered mail, postage prepaid, and return receipt requested or
transmitted by telex, telegraph or telecopier and confirmed by a similar
mailed writing, to:
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(a) in the case of the Servicer,
SunTrust Mortgage, Inc.
0000 Xxxxxx Xxxxxx, 0xx Xxxxx
Xxxxxxxx, XX 00000
Attention: Xxxxxxx Xxxxxx-Xxxxxxx
Telephone (000) 000-0000
Facsimile: (000) 000-0000
or such other address as may hereafter be furnished by the
Servicer;
(b) in the case of the Assignee,
GS Mortgage Securities Corp.
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx Xxxxxxx
Tel.: (000) 000-0000
Fax: (000) 000-0000
With a copy to:
GS Mortgage Securities Corp.
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxxx Xxxxxxx
Tel.: (000) 000-0000
Fax: (000) 000-0000
or such other address as may hereafter be furnished by the
Assignee, and
(c) in the case of the Assignor,
Xxxxxxx Sachs Mortgage Company
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxxx Xxxxxxx
Tel.: (000) 000-0000
Fax: (000) 000-0000
or such other address as may hereafter be furnished by the
Assignor.
12. Counterparts. This Assignment Agreement may be executed in
counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same
instrument.
13. Definitions. Any capitalized term used but not defined in this
Assignment Agreement has the meaning assigned thereto in the Servicing
Agreement.
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14. Third Party Beneficiary. The parties agree that the Trustee is
intended to be, and shall have the rights of, a third party beneficiary of
this Assignment Agreement.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the parties hereto have executed this Assignment
Agreement the day and year first above written.
XXXXXXX SACHS MORTGAGE
COMPANY
By: Xxxxxxx Xxxxx Real Estate Funding
Corp., its General Partner
By: /s/ Xxxx Xxxxx
-----------------------------------
Name: Xxxx Xxxxx
Title: Managing Director
GS MORTGAGE SECURITIES CORP.
By: /s/ Xxxxxxxx Xxxx
-----------------------------------
Name: Xxxxxxxx Xxxx
Title: Vice President
SUNTRUST MORTGAGE, INC.
By: /s/ Xxxxxxx Xxxxxx Xxxxxxx
-----------------------------------
Name: Xxxxxxx Xxxxxx Xxxxxxx
Title: Vice President
SunTrust Step 1 AAR
EXHIBIT 1
Mortgage Loan Schedule
[On File with the Securities Administrator as provided by the Depositor]
1-1
EXHIBIT 2
Servicing Agreement
[See Attached]
2-1
EXECUTION COPY
XXXXXXX SACHS MORTGAGE COMPANY
Purchaser
and
SUNTRUST MORTGAGE, INC.
Company
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AMENDED AND RESTATED FLOW SELLER'S
WARRANTIES AND SERVICING AGREEMENT
Dated as of December 1, 2005
------------------------------
Fixed and Adjustable Rate Pools
TABLE OF CONTENTS
ARTICLE I
DEFINITIONS
Section 1.1. Definitions...................................................................................1
ARTICLE II
CONVEYANCE OF MORTGAGE LOANS; POSSESSION OF MORTGAGE FILES;
BOOKS AND RECORDS; DELIVERY OF DOCUMENTS
Section 2.1. Conveyance of Mortgage Loans; Possession of Mortgage Files; Maintenance of
Servicing Files............................................................................12
Section 2.2. Books and Records; Transfers of Mortgage Loans...............................................14
Section 2.3. Delivery of Documents........................................................................15
Section 2.4. Mortgage Schedule............................................................................17
Section 2.5. Examination of Mortgage Files................................................................17
Section 2.6. Representations, Warranties and Agreements of the Company....................................17
Section 2.7. Representation, Warranties and Agreement of Purchaser........................................18
Section 2.8. Closing......................................................................................18
Section 2.9. Closing Documents............................................................................19
ARTICLE III
REPRESENTATIONS AND WARRANTIES REMEDIES AND BREACH
Section 3.1. Company Representations and Warranties.......................................................19
Section 3.2. Representations and Warranties Regarding Individual Mortgage Loans...........................22
Section 3.3. Repurchase...................................................................................33
ARTICLE IV
ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
Section 4.1. Company to Act as Servicer...................................................................35
Section 4.2. Liquidation of Mortgage Loans................................................................36
Section 4.3. Collection of Mortgage Loan Payments.........................................................37
Section 4.4. Establishment of and Deposits to Custodial Account...........................................37
Section 4.5. Permitted Withdrawals From Custodial Account.................................................39
Section 4.6. Establishment of and Deposits to Escrow Account..............................................40
Section 4.7. Permitted Withdrawals From Escrow Account....................................................41
Section 4.8. Payment of Taxes, Insurance and Other Charges................................................42
Section 4.9. Protection of Accounts.......................................................................42
Section 4.10. Maintenance of Hazard Insurance..............................................................42
Section 4.11. Maintenance of Primary Mortgage Insurance Policy; Claims.....................................44
Section 4.12. Maintenance of Mortgage Impairment Insurance.................................................44
Section 4.13. Maintenance of Fidelity Bond and Errors and Omissions Insurance..............................45
Section 4.14. Inspections..................................................................................45
Section 4.15. Restoration of Mortgaged Property............................................................45
Section 4.16. Claims.......................................................................................46
Section 4.17. Title, Management and Disposition of REO Property............................................46
Section 4.18. Real Estate Owned Reports....................................................................47
Section 4.19. Liquidation Reports..........................................................................48
Section 4.20. Reports and Returns to be Filed..............................................................48
Section 4.21. Fair Credit Reporting Act....................................................................48
Section 4.22. Disaster Recovery/Business Continuity Plan...................................................48
Section 4.23. MERS.........................................................................................48
ARTICLE V
PAYMENTS TO PURCHASER
Section 5.1. Remittances..................................................................................49
Section 5.2. Statements to Purchaser......................................................................49
Section 5.3. Monthly Advances by Company..................................................................49
ARTICLE VI
GENERAL SERVICING PROCEDURES
Section 6.1. Transfers of Mortgaged Property..............................................................50
Section 6.2. Satisfaction of Mortgages and Release of Mortgage Files......................................51
Section 6.3. Servicing Compensation.......................................................................52
Section 6.4. Annual Statement as to Compliance............................................................52
Section 6.5. Annual Independent Public Accountants' Servicing Report......................................52
Section 6.6. Right to Examine Company Records.............................................................53
Section 6.7. Compliance with REMIC Provisions.............................................................53
ARTICLE VII
COMPANY TO COOPERATE
Section 7.1. Provision of Information.....................................................................53
Section 7.2. Financial Statements; Servicing Facility.....................................................53
Section 7.3. Cooperation with Third-party Service Providers...............................................54
ARTICLE VIII
THE COMPANY
Section 8.1. Indemnification; Third Party Claims..........................................................54
Section 8.2. Merger or Consolidation of the Company.......................................................55
Section 8.3. Limitation on Liability of Company and Others................................................55
Section 8.4. Limitation on Resignation and Assignment by Company..........................................56
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ARTICLE IX
SECURITIZATION TRANSACTION
Section 9.1. Removal of Mortgage Loans from Inclusion Under this Agreement Upon a
Securitization Transaction.................................................................56
ARTICLE X
DEFAULT
Section 10.1. Events of Default............................................................................58
Section 10.2. Waiver of Defaults...........................................................................60
ARTICLE XI
TERMINATION
Section 11.1. Termination..................................................................................60
Section 11.2. Termination Without Cause....................................................................61
Section 11.3. Termination With Cause.......................................................................61
ARTICLE XII
MISCELLANEOUS PROVISIONS
Section 12.1. Successor to Company.........................................................................61
Section 12.2. Amendment....................................................................................62
Section 12.3. Governing Law................................................................................62
Section 12.4. Duration of Agreement........................................................................63
Section 12.5. Notices......................................................................................63
Section 12.6. Severability of Provisions...................................................................64
Section 12.7. Relationship of Parties......................................................................64
Section 12.8. Execution; Successors and Assigns............................................................64
Section 12.9. Recordation of Assignments of Mortgage.......................................................64
Section 12.10. Assignment by Purchaser......................................................................65
Section 12.11. Solicitation of Mortgagor....................................................................65
Section 12.12. Confidential Information.....................................................................65
ARTICLE XIII
COMPLIANCE WITH REGULATION AB
Section 13.1. Intent of the Parties; Reasonableness........................................................66
Section 13.2. Additional Representations and Warranties of the Company.....................................67
Section 13.3. Information to Be Provided by the Company....................................................68
Section 13.4. Servicer Compliance Statement................................................................72
Section 13.5. Report on Assessment of Compliance and Attestation...........................................73
Section 13.6. Use of Subservicers and Subcontractors.......................................................74
Section 13.7. Indemnification; Remedies....................................................................75
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EXHIBITS
Exhibit A Mortgage Loan Schedule
Exhibit B Contents of Each Mortgage Loan File
Exhibit C Form of Custodial Agreement
Exhibit D Form of Opinion of Counsel
Exhibit E Items to Be Included in Monthly Remittance Advice
Exhibit F Form of Assignment and Assumption Agreement
Exhibit G Form of Seller's Officer's Certificate
Exhibit H Form of Annual Certification
Exhibit I Form of Warranty Xxxx of Sale
Exhibit J Company Guide
Exhibit K Servicing Criteria to be Addressed in Assessment of Compliance
Exhibit L Company's Static Pool Information Data
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This is the Amended and Restated Flow Seller's Warranties and Servicing
Agreement for various residential first mortgage loans, dated and effective as
of December 1, 2005, and is executed between Xxxxxxx Sachs Mortgage Company,
as purchaser (the "Purchaser"), and SunTrust Mortgage, Inc., as seller and
servicer (the "Company").
W I T N E S S E T H
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WHEREAS, the Company and the Purchaser are parties to that certain Flow
Seller's Warranties and Servicing Agreement, dated as of November 1, 2004, as
amended by Amendment No. 1 to the Flow Seller's Warranties and Servicing
Agreement, dated as of November 9, 2005 (together, the "Existing Agreement"),
pursuant to which, from time to time, the Company desires to sell to the
Purchaser, and from time to time, the Purchaser desires to purchase from the
Company, certain fixed and adjustable rate residential first-lien mortgage
loans (each, a "Mortgage Loan") on a servicing retained basis as described
therein, and which shall be delivered as pools of whole loans; and
WHEREAS, the Company has established certain terms, conditions and loan
programs, as described in the Company's Underwriting Guidelines (the "Company
Guide") and the Purchaser is willing to purchase Mortgage Loans that comply
with such terms, conditions and loan programs. The applicable provisions of
the Company Guide are attached hereto as Exhibit J; and
WHEREAS, at the present time the Purchaser and the Company desire to
amend the Existing Agreement to make certain modifications as set forth herein
with respect to all Mortgage Loans acquired pursuant to this Agreement or the
Existing Agreement.
NOW, THEREFORE, in consideration of the mutual agreements hereinafter
set forth, and for other good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the Purchaser and the Company agree
as follows:
ARTICLE I
DEFINITIONS
Section 1.1. Definitions. Whenever used herein, the following words and
phrases, unless the content otherwise requires, shall have the following
meanings:
Accepted Servicing Practices: With respect to any Mortgage Loan,
procedures (including collection procedures) that comply with applicable
federal, state and local law and the Xxxxxxx Mac Single Family Servicing
Guide, and that the Company customarily employs and exercises in servicing and
administering mortgage loans for its own account and that are in accordance
with accepted mortgage servicing practices of prudent mortgage lending
institutions which service mortgage loans of the same type as the Mortgage
Loans in the jurisdiction where the related Mortgaged Property is located.
Agreement: This Amended and Restated Flow Seller's Warranties and
Servicing Agreement and all amendments hereof and supplements hereto.
ALTA: The American Land Title Association or any successor thereto.
Annual Certification: The certification delivered by the Company in a
form substantially similar to Exhibit H of this Agreement.
Appraised Value: With respect to any Mortgage Loan, the lesser of (i)
the value set forth on the appraisal made in connection with the origination
of the related Mortgage Loan as the value of the related Mortgage Property, or
(ii) the purchase price paid for the Mortgage Property, provided, however, in
the case of a refinanced Mortgage Loan, such value shall be based solely on
the appraisal made in connection with the refinance of such Mortgage Loan.
Applicable Law: All provisions of statutes, rules and regulations,
interpretations and orders of governmental bodies or regulatory agencies
applicable to a Person, and all orders and decrees of all courts and
arbitrators in proceedings or actions in which the Person in question is a
party.
ARM Loan: An "adjustable rate" Mortgage Loan, the Mortgage Interest Rate
of which is subject to periodic adjustment in accordance with the terms of the
Mortgage Note.
Assignment of Mortgage or Assignment: An assignment of the Mortgage,
notice of transfer or equivalent instrument in recordable form, sufficient
under the laws of the jurisdiction wherein the related Mortgaged Property is
located to reflect the sale of the Mortgage to the Purchaser or its designated
assignee or, in the case of a MERS Mortgage Loan, an electronic transmission
to MERS, identifying a transfer of ownership of the related Mortgage to the
Purchaser or its designee.
Business Day: Any day other than (i) a Saturday or Sunday, or (ii) a day
on which banking and savings and loan institutions in the states where the
parties are located are authorized or obligated by law or executive order to
be closed.
Closing Date: Each date that the Purchaser purchases Mortgage Loans from
the Company hereunder.
Code: The Internal Revenue Code of 1986, as it may be amended from time
to time or any successor statute thereto, and applicable U.S. Department of
the Treasury regulations issued pursuant thereto.
Commission: The United States Securities and Exchange Commission.
Commitment Letter: With respect to any pool of Mortgage Loans purchased
and sold on any Closing Date, the letter agreement between the Purchaser and
the Company (including any exhibits, schedules and attachments thereto),
setting forth the terms and conditions of such transaction and describing the
Mortgage Loans to be purchased by the Purchaser on such Closing Date. A
Commitment Letter may relate to more than one pool of Mortgage Loans to be
purchased on one or more Closing Dates hereunder.
Company: SunTrust Mortgage, Inc., or its successor in interest or
assigns, or any successor to the Company under this Agreement appointed as
herein provided.
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Company Employees: The meaning assigned to such term in Section 4.13.
Company Guide: The terms, conditions and loan programs described in the
Company's Underwriting Guidelines, the applicable provisions of which are
attached hereto as Exhibit J.
Company Information: As defined in Subsection 13.7(a).
Condemnation Proceeds: All awards or settlements in respect of a
Mortgaged Property, whether permanent or temporary, partial or entire, by
exercise of the power of eminent domain or condemnation, to the extent not
required to be released to a Mortgagor in accordance with the terms of the
related Mortgage Loan Documents.
Consumer Information: Information including, but not limited to, all
personal information about the Mortgagors that is supplied to the Company by
or on behalf of the Mortgagors.
Covered Loan: A Mortgage Loan categorized as Covered pursuant to
Appendix E of Standard & Poor's Glossary.
Custodial Account: The separate account or accounts created and
maintained pursuant to Section 4.4.
Custodial Agreement: The agreement governing the retention of the
originals of each Mortgage Note, Mortgage, Assignment of Mortgage and other
Mortgage Loan Documents, a form of which is annexed hereto as Exhibit C.
Custodian: The custodian under a Custodial Agreement, or its successor
in interest or assigns, or any successor to the Custodian under such Custodial
Agreement as provided therein.
Cut-off Date: The first day of the month in which the respective Closing
Date occurs.
Depositor: The depositor, as such term is defined in Regulation AB, with
respect to any Securitization Transaction.
Determination Date: The day preceding the Remittance Date, or if such
day is not a Business Day, the preceding Business Day.
Due Date: The first day of the month on which the Monthly Payment is due
on a Mortgage Loan, exclusive of any days of grace.
Due Period: With respect to each Remittance Date, the period commencing
on the second day of the month preceding the month in which such Remittance
Date occurs and ending on (and including) the first day of the month in which
such Remittance Date occurs.
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Errors and Omissions Insurance Policy: An errors and omissions insurance
policy to be maintained by the Company pursuant to Section 4.13.
Escrow Account: The separate account or accounts created and maintained
pursuant to Section 4.6.
Escrow Payments: With respect to any Mortgage Loan, the amounts
constituting ground rents, taxes, assessments, water rates, sewer rents,
municipal charges, mortgage insurance premiums, fire and hazard insurance
premiums, condominium charges, and any other payments required to be escrowed
by the Mortgagor with the mortgagee pursuant to the Mortgage or any other
related document.
Event of Default: Any one of the conditions or circumstances enumerated
in Section 10.1.
Exchange Act: The Securities Exchange Act of 1934, as amended.
FDIC: The Federal Deposit Insurance Corporation, and its successors.
Fidelity Bond: A fidelity bond to be maintained by the Company pursuant
to Section 4.12.
First Remittance Date: With respect to each Closing Date, the Remittance
Date occurring in the calendar month immediately following the month in which
such Closing Date occurs.
FNMA: Federal National Mortgage Association, and its successors.
Xxxxxxx Mac: Federal Home Loan Mortgage Company, and its successors.
Gross Margin: With respect to each ARM Loan, the fixed percentage added
to the Index on each Rate Adjustment Date, as specified in each related
Mortgage Note and listed in the Mortgage Loan Schedule.
High Cost Loan: A Mortgage Loan (a) covered by the Home Ownership and
Equity Protection Act of 1994, (b) classified as a "high cost home,"
"threshold," "covered," "high risk home," "predatory" or similar loan under
any other applicable state, federal or local law (or a similarly classified
loan using different terminology under a law imposing heightened regulatory
scrutiny or additional legal liability for residential mortgage loans having
high interest rates, points and/or fees) or (c) categorized as High Cost
pursuant to Appendix E of Standard & Poor's Glossary. For avoidance of doubt,
the parties agree that this definition shall apply to any law regardless of
whether such law is presently, or in the future becomes, the subject of
judicial review or litigation.
Home Loan: A Mortgage Loan categorized as Home Loan pursuant to Appendix
E of Standard & Poor's Glossary.
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Index: With respect to each ARM Loan, on each Rate Adjustment Date, the
applicable rate index set forth on the Mortgage Loan Schedule.
Insurance Proceeds: Proceeds of any mortgage insurance, title policy,
hazard policy or other insurance policy covering a Mortgage Loan, if any, to
the extent such proceeds are not to be applied to the restoration of the
related Mortgaged Property or released to the Mortgagor in accordance with the
procedures that the Company would follow in servicing mortgage loans held for
its own account.
Lifetime Rate Cap: The provision of each Mortgage Note related to an
Adjustable Rate Mortgage Loan which provides for an absolute maximum Mortgage
Interest Rate thereunder. The Mortgage Interest Rate during the terms of each
Adjustable Rate Mortgage Loan shall not at any time exceed the Mortgage
Interest Rate at the time of origination of such Adjustable Rate Mortgage Loan
by more than the amount per annum set forth on the related Mortgage Loan
Schedule.
Liquidation Proceeds: Cash (other than Insurance Proceeds or
Condemnation Proceeds) received in connection with the liquidation of a
defaulted Mortgage Loan, whether through the sale or assignment of such
Mortgage Loan, trustee's sale, foreclosure sale, sale of REO Property, or
otherwise, or the sale of the related Mortgaged Property if the Mortgaged
Property is acquired in satisfaction of the Mortgage Loan.
Loan-to-Value Ratio: With respect to any Mortgage Loan, the ratio of the
original loan amount of the Mortgage Loan at its origination or refinancing,
as applicable, to the Appraised Value of the Mortgaged Property.
Manufactured Home: A single family residential unit that is constructed
in a factory in sections in accordance with the Federal Manufactured Home
Construction and Safety Standards adopted on July 15, 1976, by the Department
of Housing and Urban Development ("HUD Code"), as amended in 2000, which
preempts state and local building codes. Each unit is identified by the
presence of a HUD Plate/Compliance Certificate label. The sections are then
transported to the site and joined together and affixed to a pre-built
permanent foundation (which satisfies the manufacturer's requirements and all
state, county, and local building codes and regulations). The manufactured
home is built on a non-removable, permanent frame chassis that supports the
complete unit of walls, floors, and roof. The underneath part of the home may
have running gear (wheels, axles, and brakes) that enable it to be transported
to the permanent site. The wheels and hitch are removed prior to anchoring the
unit to the permanent foundation. The manufactured home must be classified as
real estate and taxed accordingly. The permanent foundation may be on land
owned by the mortgager or may be on leased land.
Maximum Rate: With respect to each ARM Loan, the rate per annum set
forth in the related Mortgage Note as the maximum Mortgage Interest Rate
thereunder. The Maximum Rate as to each ARM Loan is set forth on the related
Mortgage Loan Schedule.
MERS: Mortgage Electronic Registration Systems, Inc., a Delaware
corporation, or any successor in interest thereto.
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MERS Eligible Mortgage Loan: Any Mortgage Loan that under Applicable Law
and investor requirements is recordable in the name of MERS in the
jurisdiction in which the related Mortgaged Property is located.
MERS Mortgage Loan: Any Mortgage Loan as to which the related Mortgage,
or an Assignment, has been recorded in the name of MERS, as agent for the
holder from time to time of the Mortgage Note.
Minimum Rate: With respect to each ARM Loan, the rate per annum set
forth in the related Mortgage Note as the minimum Mortgage Interest Rate
thereunder. The Minimum Rate as to each ARM Loan is set forth on the related
Mortgage Loan Schedule.
Monthly Advance: The portion of each Monthly Payment that is delinquent
with respect to each Mortgage Loan at the close of business on the
Determination Date required to be advanced by the Company pursuant to Section
5.3 on the Business Day immediately preceding the Remittance Date of the
related month.
Monthly Payment: The scheduled monthly payment of principal and interest
on a Mortgage Loan.
Monthly Remittance Advice: The meaning assigned to such term in Section
5.2.
Mortgage: The mortgage, deed of trust or other instrument and riders
thereto securing a Mortgage Note, which creates a first lien on an
unsubordinated estate in fee simple in real property securing the Mortgage
Note.
Mortgage File: The items pertaining to a particular Mortgage Loan
referred to in Exhibit B annexed hereto, and any additional documents required
to be added to the Mortgage File pursuant to this Agreement.
Mortgage Interest Rate: The annual rate of interest borne on a Mortgage
Note in accordance with the provisions of the Mortgage Note.
Mortgage Loan: An individual Mortgage Loan which is the subject of this
Agreement, each Mortgage Loan originally sold and subject to this Agreement
being identified on the Mortgage Loan Schedule, which Mortgage Loan includes
without limitation the Mortgage File, the Monthly Payments, Principal
Prepayments, Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds,
REO Disposition Proceeds and all other rights, benefits, proceeds and
obligations arising from or in connection with such Mortgage Loan.
Mortgage Loan Documents: With respect to a Mortgage Loan, the original
related Mortgage Note with applicable addenda and riders, the original related
security instrument and the originals of any required addenda and riders, the
original related Assignment and any original intervening related Assignments,
the original related title insurance policy, and the related appraisal report.
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Mortgage Loan Remittance Rate: With respect to each Mortgage Loan, the
annual rate of interest remitted to the Purchaser, which shall be equal to the
Mortgage Interest Rate minus the Servicing Fee Rate.
Mortgage Loan Schedule: A schedule of Mortgage Loans annexed hereto as
Exhibit A, such schedule setting forth the following information with respect
to each Mortgage Loan: (1) the Company's Mortgage Loan number; (2) the
address, city, state and zip code of the Mortgaged Property; (3) a code
indicating whether the Mortgaged Property is a single family residence,
two-family residence, three-family residence, four family residence or planned
unit development; (4) the purpose of the Mortgage Loan; (5) the Mortgagor's
social security number; (6) a code indicating the occupancy status of the
Mortgaged Property (i.e., owner-occupied, non-owner, second home); (7) a code
indicating whether the Mortgagor was self-employed at the time of origination;
(8) the Mortgage Interest Rate at origination; (9) the current Mortgage
Interest Rate, Lifetime Rate Cap, if applicable, and Periodic Rate Cap, if
applicable; (10) whether the Mortgage Loan has Monthly Payments that are
interest only for a period of time; (11) the Servicing Fee Rate; (12) the
current Monthly Payment; (13) the original term to maturity; (14) the
remaining term to maturity; (15) the actual principal balance of the Mortgage
Loan as of the Cut-off Date; (16) the principal balance of the Mortgage Loan
at origination; (17) the principal balance of the Mortgage Loan as of the
Cut-off Date after deduction of payments of principal due on or before the
Cut-off Date whether or not collected; (18) the LTV at origination or, if the
Mortgage Loan was secured by a second lien, the combined LTV at origination;
(19) the due date of the Mortgage Loan; (20) a PMI Policy insurer name and
code, percent and policy number (if applicable); (21) the principal balance of
that portion of the Mortgage Loan secured by a first lien and, if applicable,
the principal balance of that portion of the Mortgage Loan secured by a second
lien; (22) the type of appraisal; (23) a code indicating whether the Mortgage
Loan is a MERS Mortgage Loan; (24) a code indicating whether the Mortgaged
Property is secured by a second lien; (25) a code indicating whether the
Mortgage Loan is secured by a leasehold interest in the related Mortgaged
Property; (26) a code indicating whether the Mortgage Loan is subject to a
prepay penalty; (27) documentation type (method of income verification, asset
verification and verification of employment); (28) a code indicating whether
the Mortgage Loan is a buydown loan; (29) first payment date; (30) FICO score;
(31) payment history and (32) a code indicating if the Mortgage Loan is a High
Cost Loan or Home Loan as such terms are defined in the then current Standard
& Poor's Glossary. With respect to any ARM Loan, in addition to (1) through
(31) above: (a) the Gross Margin; (b) the Periodic Rate Cap; (c) the Lifetime
Rate Cap; (d) the first Interest Adjustment Date and the Interest Adjustment
Date frequency; (e) the Maximum Rate; (f) the Minimum Rate; (g) the first
Interest Adjustment Date immediately following the Cut-off Date; and (h) the
Index.
Mortgage Note: The note or other evidence of the indebtedness of a
Mortgagor secured by a Mortgage and riders thereto.
Mortgaged Property: The real property securing repayment of the debt
evidenced by a Mortgage Note.
Mortgagor: The obligor on a Mortgage Note.
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Officer's Certificate: A certificate signed by the Chairman of the
Board, the Vice Chairman of the Board, the President, a Vice President, an
Assistant Vice President, the Treasurer, the Secretary or one of the Assistant
Treasurers or Assistant Secretaries of the Company, and delivered to the
Purchaser as required by this Agreement.
Opinion of Counsel: A written opinion of counsel, who may be an employee
of the Company, reasonably acceptable to the Purchaser.
Periodic Rate Cap: With respect to each ARM Loan, the provision in each
Mortgage Note that limits permissible increases and decreases in the Mortgage
Interest Rate on any Rate Adjustment Date to not more than one percentage
point with respect to each ARM Loan that is subject to semi-annual adjustment
or two percentage points with respect to each ARM Loan that is subject to
annual adjustment.
Person: Any individual, corporation, partnership, limited liability
company, joint venture, association, joint-stock company, trust,
unincorporated organization, government or any agency or political subdivision
thereof.
Primary Mortgage Insurance Policy: Each policy of primary mortgage
insurance represented to be in effect pursuant to Section 3.2(xxxii), or any
replacement policy therefor obtained by the Servicer pursuant to Section 4.8.
Prime Rate: The prime rate announced to be in effect from time to time,
as published as the average rate in The Wall Street Journal.
Principal Balance: As to each Mortgage Loan, (i) the actual outstanding
principal balance of the Mortgage Loan at the Cut-off Date after giving effect
to payments of principal due on or before such date, whether or not received,
minus (ii) all amounts attributable to principal collected from or on behalf
of the Mortgagor, including the principal portion of Liquidation Proceeds,
Condemnation Proceeds, and Insurance Proceeds.
Principal Prepayment: Any payment or other recovery of principal on a
Mortgage Loan which is received in advance of its scheduled Due Date,
including any prepayment penalty or premium thereon and which is not
accompanied by an amount of interest representing scheduled interest due on
any date or dates in any month or months subsequent to the month of
prepayment.
Principal Prepayment Period: With respect to each Remittance Date, the
period commencing on the first day of the month preceding the month in which
such Remittance Date occurs, and ending on the last day of such month.
Purchase Price: The purchase price specified in the Commitment Letter.
Purchaser: Xxxxxxx Xxxxx Mortgage Company, or its successor in interest
or any successor to the Purchaser under this Agreement as herein provided.
Qualified Correspondent: Any Person from which the Company purchased
Mortgage Loans, provided that the following conditions are satisfied: (i) such
Mortgage Loans
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were originated pursuant to an agreement between the Company and such Person
that contemplated that such Person would underwrite mortgage loans from time
to time, for sale to the Company, in accordance with underwriting guidelines
designated by the Company ("Designated Guidelines") or guidelines that do not
vary materially from such Designated Guidelines; (ii) such Mortgage Loans were
in fact underwritten as described in clause (i) above and were acquired by the
Company within 180 days after origination; (iii) either (x) the Designated
Guidelines were, at the time such Mortgage Loans were originated, used by the
Company in origination of mortgage loans of the same type as the Mortgage
Loans for the Company's own account or (y) the Designated Guidelines were, at
the time such Mortgage Loans were underwritten, designated by the Company on a
consistent basis for use by lenders in originating mortgage loans to be
purchased by the Company; and (iv) the Company employed, at the time such
Mortgage Loans were acquired by the Company, pre-purchase or post-purchase
quality assurance procedures (which may involve, among other things, review of
a sample of mortgage loans purchased during a particular time period or
through particular channels) designed to ensure that Persons from which it
purchased mortgage loans properly applied the underwriting criteria designated
by the Company.
Qualification Defect: With respect to a Mortgage Loan, (a) a defective
document in the Mortgage File, (b) the absence of a document in the Mortgage
File, or (c) the breach of any representation, warranty or covenant with
respect to the Mortgage Loan made by the Company, but, in each case, only if
the affected Mortgage Loan would cease to qualify as a "qualified mortgage"
for purposes of the REMIC Provisions.
Qualified Depository: A federal or state chartered depository
institution, the deposits in which are insured by the FDIC to the applicable
limits and the short-term unsecured debt obligations of which (or, in the case
of a depository institution that is a subsidiary of a holding company, the
short-term unsecured debt obligations of such holding company) are rated A-1
by Standard & Poor's Ratings Group and Prime-1 by Xxxxx'x Investors Service,
Inc. (or a comparable rating if another rating agency is specified by the
Purchaser by written notice to the Company) at the time any deposits are held
on deposit therein; provided however, that in the event any of the Mortgage
Loans are subject to a Securitization Transaction, the Company agrees that the
holding company or other entity which maintains any accounts subject to this
definition, shall satisfy the rating requirements established by any Rating
Agency which rates securities issued as part of the Securitization
Transaction.
Qualified Insurer: A mortgage guaranty insurance company duly authorized
and licensed where required by law to transact mortgage guaranty insurance
business and approved as an insurer by FNMA.
Rate Adjustment Date: With respect to each ARM Loan, the date on which
the Mortgage Interest Rate adjusts.
Rating Agency: Xxxxx'x Investors Service, Inc., Standard & Poor's
Ratings Group, division of The XxXxxx-Xxxx Companies, Fitch, Inc (doing
business as "Fitch Ratings"), or any other nationally recognized statistical
credit rating agency rating any security issued in connection with any
Securitization Transaction.
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Reconstitution: Any Securitization Transaction or Whole Loan Transfer.
Reconstitution Date: The date on which any or all of the Mortgage Loans
serviced under this Agreement shall be reconstituted as part of a
Securitization Transaction or Whole Loan Transfer pursuant to Section 9.1
hereof. The Reconstitution Date shall be such date the Purchaser shall
designate in writing to the Company.
Regulation AB: Subpart 229.1100 - Asset Backed Securities (Regulation
AB), 17 C.F.R. ss.ss.229.1100-229.1123, as such may be amended from time to
time, and subject to such clarification and interpretation as have been
provided by the Commission in the adopting release (Asset-Backed Securities,
Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005))
or by the staff of the Commission, or as may be provided by the Commission or
its staff from time to time.
REMIC: A "real estate mortgage investment conduit" within the meaning of
Section 860D of the Code.
REMIC Provisions: Provisions of the federal income tax law relating to a
REMIC, which appear at Section 860A through 860G of Subchapter M of Chapter 1,
Subtitle A of the Code, and related provisions, and regulations, rulings or
pronouncements promulgated thereunder, as the foregoing may be in effect from
time to time.
Remittance Advice Date: The 10th Business Day of each month or, if such
10th day is not a Business Day, the first Business Day immediately succeeding
such date.
Remittance Date: The 18th day (or if such 18th day is not a Business
Day, the first Business Day immediately preceding such date) of any month,
beginning with the First Remittance Date.
REO Disposition: The final sale by the Company of any REO Property.
REO Disposition Proceeds: All amounts received with respect to an REO
Disposition pursuant to Section 4.16.
REO Property: A Mortgaged Property acquired by the Company on behalf of
the Purchaser through foreclosure or by deed in lieu of foreclosure, as
described in Section 4.16.
Repurchase Price: Unless agreed otherwise by the Purchaser and the
Company (including without limitation as set forth in the Commitment Letter),
a price equal to (i) the Scheduled Principal Balance of the Mortgage Loan plus
(ii) interest on such Scheduled Principal Balance at the Mortgage Loan
Remittance Rate from the date on which interest has last been paid and
distributed to the Purchaser to the last day of the month of repurchase, less
amounts received or advanced in respect of such repurchased Mortgage Loan
which are being held in the Custodial Account for distribution in the month of
repurchase, to the extent such amounts are actually paid to the Purchaser upon
the repurchase of the related Mortgage Loan plus (iii) any costs and damages
incurred by the trust in the applicable Securitization Transaction in
connection with any violation by the applicable Mortgage Loan of any predatory
or abusive lending law.
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Scheduled Principal Balance: As to each Mortgage Loan, (i) the principal
balance of the Mortgage Loan at the Cut-off Date after giving effect to
payments of principal due on or before such date, whether or not received,
minus (ii) all amounts previously collected by the Company as servicer
hereunder or advanced and distributed to the Purchaser with respect to the
related Mortgage Loan representing payments or recoveries of principal or
advances made in lieu thereof.
Securities Act: The Securities Act of 1933, as amended.
Securitization Transaction: Any transaction involving either (1) a sale
or other transfer of some or all of the Mortgage Loans directly or indirectly
to an issuing entity in connection with an issuance of publicly offered or
privately placed, rated or unrated mortgage-backed securities or (2) an
issuance of publicly offered or privately placed, rated or unrated securities,
the payments on which are determined primarily by reference to one or more
portfolios of residential mortgage loans consisting, in whole or in part, of
some or all of the Mortgage Loans.
Servicer: As defined in Section 13.3(c).
Servicing Advances: All customary, reasonable and necessary "out of
pocket" costs and expenses other than Monthly Advances (including reasonable
attorney's fees and disbursements) incurred in the performance by the Company
of its servicing obligations, including, but not limited to, the cost of (a)
the preservation, restoration and protection of the Mortgaged Property, (b)
any enforcement or judicial proceedings, including foreclosures, (c) the
management and liquidation of any REO Property and (d) compliance with the
obligations under Section 4.8.
Servicing Criteria: The "servicing criteria" set forth in Item 1122(d)
of Regulation AB, as such may be amended from time to time.
Servicing Fee: With respect to each Mortgage Loan, the amount of the per
annum fee the Purchaser shall pay to the Company, which shall, for a period of
one full month, be equal to one-twelfth of the product of (a) the Servicing
Fee Rate and (b) the Scheduled Principal Balance of such Mortgage Loan. Such
fee shall be payable monthly, computed on the basis of the same principal
amount and same period for which any related interest payment on a Mortgage
Loan is computed. The obligation of the Purchaser to pay the Servicing Fee is
limited to, and the Servicing Fee is payable solely from, the interest portion
(including recoveries with respect to interest from Liquidation Proceeds, to
the extent permitted by Section 4.5) of such Monthly Payment collected by the
Company, or as otherwise provided under Section 4.5.
Servicing Fee Rate: The rate set forth in the applicable Commitment
Letter.
Servicing File: With respect to each Mortgage Loan, the file retained by
the Company consisting of originals of all documents in the Mortgage File
which are not delivered to the Custodian and copies of the Mortgage Loan
Documents listed in the Custodial Agreement the originals of which are
delivered to the Custodian pursuant to Section 2.3.
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Servicing Officer: Any officer of the Company involved in or responsible
for the administration and servicing of the Mortgage Loans whose name appears
on a list of servicing officers furnished by the Company to the Purchaser upon
request, as such list may from time to time be amended.
Sponsor: The sponsor, as such term is defined in Regulation AB, with
respect to any Securitization Transaction.
Standard & Poor's: Standard & Poor's Rating Services, a division of The
XxXxxx-Xxxx Companies Inc., and its successors in interest.
Standard & Poor's Glossary: The Standard & Poor's LEVELS(R) Glossary, as
may be in effect from time to time.
Static Pool Information: Static pool information as described in Item
1105(a)(1)-(3) and 1105(c) of Regulation AB.
Subcontractor: Any vendor, subcontractor or other Person that is not
responsible for the overall servicing (as "servicing" is commonly understood
by participants in the mortgage-backed securities market) of Mortgage Loans
but performs one or more discrete functions identified in Item 1122(d) of
Regulation AB with respect to Mortgage Loans under the direction or authority
of the Company or a Subservicer.
Subservicer: Any Person that services Mortgage Loans on behalf of the
Company or any Subservicer and is responsible for the performance (whether
directly or through Subservicers or Subcontractors) of a substantial portion
of the material servicing functions identified in Item 1122(d) of Regulation
AB that are required to be performed by the Company under this Agreement or
any Reconstitution Agreement.
Third-Party Originator: Each Person, other than a Qualified
Correspondent, that originated Mortgage Loans acquired by the Company.
Warranty Xxxx of Sale: A warranty xxxx of sale with respect to the
Mortgage Loans purchased on a Closing Date in the form annexed hereto as
Exhibit I.
Whole Loan Transfer: Any sale or transfer of some or all of the Mortgage
Loans, other than a Securitization Transaction.
ARTICLE II
CONVEYANCE OF MORTGAGE LOANS; POSSESSION OF MORTGAGE FILES;
BOOKS AND RECORDS; DELIVERY OF DOCUMENTS
Section 2.1. Conveyance of Mortgage Loans; Possession of Mortgage Files;
Maintenance of Servicing Files. The Company agrees to sell and Purchaser
agrees to purchase, from time to time, those certain Mortgage Loans identified
in a Mortgage Loan Schedule, at the price and on the terms set forth herein
and in the related Commitment Letter. The Purchaser, on any Closing Date,
shall be obligated to purchase only such Mortgage Loans set forth in the
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applicable Mortgage Loan Schedule, subject to the terms and conditions of this
Agreement and the related Commitment Letter.
Purchaser will purchase Mortgage Loan(s) from the Company on such
Closing Dates as may be agreed upon by the Purchaser and the Company. The
closing shall, at Purchaser's option be either: by telephone, confirmed by
letter or wire as the parties shall agree; or conducted in person at such
place as the parties shall agree. On the Closing Date and subject to the terms
and conditions of this Agreement, the Company will sell, transfer, assign, set
over and convey to the Purchaser, without recourse except as set forth in this
Agreement, and the Purchaser will purchase, all of the right, title and
interest of the Company in and to the Mortgage Loans being conveyed by it
hereunder, as identified on the Mortgage Loan Schedule.
On the Closing Date and in accordance with the terms herein, the
Purchaser will pay to the Company, by wire transfer of immediately available
funds, the Purchase Price, together with interest, if any, accrued from the
Cut-off Date through the day immediately preceding the Closing Date, according
to the instructions to be provided by the Company. The Company, simultaneously
with the payment of the Purchase Price, shall execute and deliver to the
Purchaser a Warranty Xxxx of Sale with respect to the Mortgage Loans in the
form annexed hereto as Exhibit I.
The principal balance of each Mortgage Loan as of the Cut-off Date shall
be determined after application of payments of principal due on or before the
Cut-off Date whether or not collected. Therefore, payments of scheduled
principal and interest prepaid for a Due Date beyond the Cut-off Date shall
not be applied to the principal balance as of the Cut-off Date. Such prepaid
amounts (minus interest at the Servicing Fee Rate) shall be the property of
the Purchaser. The Company shall deposit any such prepaid amounts into the
Custodial Account, which account is established for the benefit of the
Purchaser for subsequent remittance by the Company to the Purchaser, and shall
remit such amounts as provided in Section 5.1.
Pursuant to Section 2.3, the Company shall deliver the Mortgage Loan
Documents to the Custodian. The contents of each Mortgage File not delivered
to the Custodian are and shall be held in trust by the Company for the benefit
of the Purchaser as the owner thereof. The Company shall maintain a Servicing
File consisting of a copy of the contents of each Mortgage File and the
originals of the documents in each Mortgage File not delivered to the
Custodian. The possession of each Servicing File by the Company is at the will
of the Purchaser for the sole purpose of servicing the related Mortgage Loan,
and such retention and possession by the Company is in a custodial capacity
only. Upon the sale of the Mortgage Loans the ownership of each Mortgage Note,
the related Mortgage and the related Mortgage File and Servicing File shall
vest immediately in the Purchaser, and the ownership of all records and
documents with respect to the related Mortgage Loan prepared by or which come
into the possession of the Company shall vest immediately in the Purchaser and
shall be retained and maintained by the Company, in trust, at the will of the
Purchaser and only in such custodial capacity. The Company shall release its
custody of the contents of any Servicing File only in accordance with written
instructions from the Purchaser, unless such release is required as incidental
to the Company's servicing of the Mortgage Loans or is in connection with a
repurchase of any Mortgage Loan pursuant to Sections 2.3, 3.3 or 6.2.
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In addition, in connection with the assignment of any MERS Mortgage
Loan, the Company agrees that it will cause, at its own expense, the MERS(R)
System to indicate that such Mortgage Loans have been assigned by the Company
to the Purchaser in accordance with this Agreement by including (or deleting,
in the case of Mortgage Loans which are repurchased in accordance with this
Agreement) in such computer files the information required by the MERS(R)
System to identify the Purchaser of such Mortgage Loans. Prior to the
assignment of any MERS Mortgage Loan, the Purchaser will provide the Company
with the Purchaser's MERS registration number. The Company further agrees that
it will not alter the information referenced in this paragraph with respect to
any Mortgage Loan during the term of this Agreement unless and until such
Mortgage Loan is repurchased in accordance with the terms of this Agreement.
Section 2.2. Books and Records; Transfers of Mortgage Loans. From and
after the sale of the Mortgage Loans to the Purchaser all rights arising out
of the Mortgage Loans including but not limited to all funds received on or in
connection with the Mortgage Loans, shall be received and held by the Company
in trust for the benefit of the Purchaser as owner of the Mortgage Loans, and
the Company shall retain record title to the related Mortgages for the sole
purpose of facilitating the servicing and the supervision of the servicing of
the Mortgage Loans.
The sale of each Mortgage Loan shall be reflected on the Company's
balance sheet and other financial statements as a sale of assets by the
Company. The Company shall be responsible for maintaining, and shall maintain,
a complete set of books and records for each Mortgage Loan which shall be
marked clearly to reflect the ownership of each Mortgage Loan by the
Purchaser. In particular, the Company shall maintain in its possession,
available for inspection by the Purchaser, or its designee, and shall deliver
to the Purchaser upon demand, evidence of compliance with all federal, state
and local laws, rules and regulations, and requirements of FNMA or Xxxxxxx
Mac, including but not limited to documentation as to the method used in
determining the applicability of the provisions of the Flood Disaster
Protection Act of 1973, as amended, to the Mortgaged Property, documentation
evidencing insurance coverage and eligibility of any condominium project for
approval by FNMA or Xxxxxxx Mac, and periodic inspection reports as required
by Section 4.13. To the extent that original documents are not required for
purposes of realization of Liquidation Proceeds or Insurance Proceeds,
documents maintained by the Company may be in the form of microfilm or
microfiche or such other reliable means of recreating original documents,
including but not limited to, optical imagery techniques so long as the
Company complies with the requirements of the FNMA or Xxxxxxx Mac Selling and
Servicing Guide, as amended from time to time.
The Company shall maintain with respect to each Mortgage Loan and shall
make available for inspection by any Purchaser or its designee the related
Servicing File during the time the Purchaser retains ownership of a Mortgage
Loan and thereafter in accordance with Applicable Law.
The Company shall keep at its servicing office books and records in
which, subject to such reasonable regulations as it may prescribe, the Company
shall note transfers of Mortgage Loans. No transfer of a Mortgage Loan may be
made unless such transfer is in compliance with the terms hereof. For the
purposes of this Agreement, the Company shall be under no obligation to deal
with any person with respect to this Agreement or the Mortgage
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Loans unless the books and records show such person as the owner of the
Mortgage Loan. The Purchaser may, subject to the terms of this Agreement, sell
and transfer one or more of the Mortgage Loans, provided, however, that in no
event shall there be more than four Persons at any given time having the
status of "Purchaser" hereunder. The Purchaser also shall advise the Company
of the transfer. Upon receipt of notice of the transfer, the Company shall
xxxx its books and records to reflect the ownership of the Mortgage Loans of
such assignee, and shall release the previous Purchaser from its obligations
hereunder with respect to the Mortgage Loans sold or transferred. If the
Company receives notification of a transfer less than five (5) Business Days
before the monthly Determination Date, the Company's duties to remit and
report to the new purchaser(s) as required by Section 5 shall begin with the
first Determination Date after the Reconstitution Date.
Section 2.3. Delivery of Documents. Pursuant to the Custodial Agreement
delivered to the Purchaser on or before a Closing Date, the Company shall
deliver and release to the Custodian those Mortgage Loan Documents as required
by the Custodial Agreement and by this Agreement with respect to each Mortgage
Loan being transferred to the Purchaser on such Closing Date.
The Custodian shall certify its receipt of all such Mortgage Loan
Documents required to be delivered pursuant to the Custodial Agreement. The
Company will be responsible for the Custodian's fees and expenses with respect
to the delivery and certification of those Mortgage Loan Documents required to
be delivered pursuant to the Custodial Agreement. The Company will be
responsible for the fees and expenses related to the recording of the initial
Assignments of Mortgage (including any fees and expenses related to any
preparation and recording of any intervening or prior assignments of the
Mortgage Loans to the Company or to any prior owners of or mortgagees with
respect to the Mortgage Loans). The Purchaser will be responsible for the
Custodian's fees and expenses with respect to the initial inventory and
maintenance of the Mortgage Loans on or after the Closing Date, including the
costs associated with clearing exceptions.
Within 90 days after each Closing Date, the Company shall deliver to the
Custodian each of the documents described in Exhibit B not delivered pursuant
to the Agreement with respect to the related Mortgage Loans.
The Company shall forward to the Custodian original documents evidencing
an assumption, modification, consolidation or extension of any Mortgage Loan
entered into in accordance with Section 4.1 or 6.1 within one week of their
execution, provided, however, that the Company shall provide the Custodian
with a certified true copy of any such document submitted for recordation
within ten (10) days of its execution, and shall provide the original of any
document submitted for recordation or a copy of such document certified by the
appropriate public recording office to be a true and complete copy of the
original within 60 days of its submission for recordation.
In the event the public recording office is delayed in returning any
original document, the Company shall deliver to the Custodian within 180 days
of its submission for recordation, a copy of such document and an Officer's
Certificate, which shall (i) identify the recorded document; (ii) state that
the recorded document has not been delivered to the Custodian
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due solely to a delay by the public recording office, (iii) state the amount
of time generally required by the applicable recording office to record and
return a document submitted for recordation, and (iv) specify the date the
applicable recorded document will be delivered to the Custodian. The Company
will be required to deliver the document to the Custodian by the date
specified in (iv) above. An extension of the date specified in (iv) above may
be requested from the Purchaser, which consent shall not be unreasonably
withheld.
Notwithstanding the foregoing, if the originals or certified copies
required in this Section 2.3 are not delivered as required within 90 days
following the Closing Date or as otherwise extended as set forth above, the
related Mortgage Loan shall, upon request of the Purchaser, be repurchased by
the Company in accordance with Section 3.3 hereof; provided, however, that the
foregoing repurchase obligation shall not apply in the event the Company
cannot deliver such items due to a delay caused by the recording office in the
applicable jurisdiction; provided that the Company shall deliver instead a
recording receipt of such recording office or, if such recording receipt is
not available, an Officer's Certificate from the Company confirming that such
documents have been accepted for recording. Any such document shall be
delivered to the Purchaser or its designee promptly upon receipt thereof from
the related recording office.
If, subsequent to the related Closing Date, the Company, the Purchaser
or the Custodian finds any document or documents constituting a part of a
Mortgage File pertaining to a Mortgage Loan to be defective (or missing) in
any material respect, and such defect or missing document materially and
adversely affects the value of the related Mortgage Loan or the interests of
the Purchaser therein, the party discovering such defect shall promptly so
notify the Company. The Company shall have a period of 90 days after receipt
of such written notice within which to correct or cure any such defect. The
Company hereby covenants and agrees that, if any material defect cannot be
corrected or cured, the Company will, upon the expiration of the applicable
cure period described above, repurchase the related Mortgage Loan in the
manner set forth in Section 3.3; provided, however, that with respect to any
Mortgage Loan, if such defect constitutes a Qualification Defect, any such
repurchase must take place within 75 days of the date such defect is
discovered.
Notwithstanding the foregoing, with respect to a Mortgage Loan, if, at
the end of such 90-day period, the Company delivers an Officer's Certificate
to the Purchaser certifying that the Company is using good faith efforts to
correct or cure such defect and identifying progress made, then the Purchaser
shall grant the Company an extension to correct or cure such defect. The
extension shall not extend beyond (1) the date that is 75 days after the date
the defect is discovered, or, (2) if the defect is not a Qualification Defect
(as evidenced by an Opinion of Counsel), the date that is 30 days beyond the
original 90-day cure period. If the defect is not a Qualification Defect,
additional 30-day extensions may be obtained pursuant to the same procedure,
as long as the Company demonstrates continued progress toward a correction or
cure; provided that no extension shall be granted beyond 180 days from the
date on which the Company received the original notice of the defect.
Notwithstanding the foregoing, with respect to a Mortgage Loan, the
failure of the Purchaser to notify the Company of any defective or missing
document in a Mortgage File within such 90-day period, or the failure of the
Purchaser to require the Company to cure or
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repurchase the related Mortgage Loan upon expiration of such 90-day period,
shall not constitute a waiver of its rights hereunder, including the rights
with respect to a Mortgage Loan, to require the Company to repurchase the
affected Mortgage Loan and the right to indemnification pursuant to Section
3.3 hereof.
Section 2.4. Mortgage Schedule. The Company shall provide the Purchaser
with certain information constituting a listing of the Mortgage Loans to be
purchased under this Agreement (the "Mortgage Loan Schedule") on each Closing
Date substantially in the form attached hereto as Exhibit A. Each Mortgage
Loan Schedule shall conform to the definition of "Mortgage Loan Schedule"
hereunder.
Section 2.5. Examination of Mortgage Files. Prior to each Closing Date,
the Company shall (a) deliver to the Purchaser in escrow, for examination, the
Mortgage File for each Mortgage Loan to be transferred on such Closing Date,
including a copy of the Assignment of Mortgage, pertaining to each Mortgage
Loan, or (b) make the Mortgage Files available to the Purchaser for
examination at the Company's offices or such other location as shall otherwise
be agreed upon by the Purchaser and the Company. Such examination may be made
by the Purchaser, or by any prospective purchaser of the Mortgage Loans from
the Purchaser, at any time before or after the related Closing Date upon prior
reasonable notice to the Company. The fact that the Purchaser or any
prospective purchaser of the Mortgage Loans has conducted or has failed to
conduct any partial or complete examination of the Mortgage Files shall not
affect the Purchaser's (or any of its successor's) rights to demand
repurchase, substitution or other relief as provided under this Agreement.
Section 2.6. Representations, Warranties and Agreements of the Company.
The Company agrees and acknowledges that it shall, as a condition to the
consummation of the transactions contemplated hereby, make the representations
and warranties specified in Sections 3.1 and 3.2 as of the Closing Date for
the related Mortgage Loans. The Company, without conceding that the Mortgage
Loans are securities, hereby makes the following additional representations,
warranties and agreements which shall be deemed to have been made as of the
Closing Date for the related Mortgage Loans:
(i) neither the Company nor anyone acting on its behalf has
offered, transferred, pledged, sold or otherwise disposed of any
Mortgage Loans, any interest in any Mortgage Loans or any other similar
security to, or solicited any offer to buy or accept a transfer, pledge
or other disposition of any Mortgage Loans, any interest in any Mortgage
Loans or any other similar security from, or otherwise approached or
negotiated with respect to any Mortgage Loans, any interest in any
Mortgage Loans or any other similar security with, any person in any
manner, or made any general solicitation by means of general advertising
or in any other manner, or taken any other action which would constitute
a distribution of the Mortgage Loans under the Securities Act or which
would render the disposition of any Mortgage Loans a violation of
Section 5 of the Securities Act or require registration pursuant
thereto, nor will it act, nor has it authorized or will it authorize any
person to act, in such manner with respect to the Mortgage Loans; and
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(ii) the Company has not dealt with any broker or agent or anyone
else who might be entitled to a fee or commission in connection with
this transaction other than the Purchaser.
Section 2.7. Representation, Warranties and Agreement of Purchaser. The
Purchaser, without conceding that the Mortgage Loans are securities, hereby
makes the following representations, warranties and agreements, which shall
have been deemed to have been made as of the Closing Date for the related
Mortgage Loans:
(i) the Purchaser understands that the Mortgage Loans have not
been registered under the Securities Act or the securities laws of any
state;
(ii) the Purchaser is acquiring the Mortgage Loans for its own
account only and not for any other person;
(iii) the Purchaser considers itself a substantial, sophisticated
institutional investor having such knowledge and experience in financial
and business matters that it is capable of evaluating the merits and
risks of investment in the Mortgage Loans; and
(iv) the Purchaser handles all Company information in compliance
with the requirements of The Xxxxx-Xxxxx-Xxxxxx Act (15 U.S.C. Sections
6801 to 6805), and the regulations promulgated thereunder, including the
Interagency Guidelines Establishing Standards for Safeguarding Customer
Information (collectively, the "Privacy Laws"), and to the extent that
regulations promulgated under, or amendments to the Privacy Laws, or any
other relevant law or regulations require additional or modified
security, privacy or confidentiality agreements between financial
institutions and third party vendors, the Purchaser agrees that it will
execute such additional or modified agreements as required by the
Company.
Section 2.8. Closing. The closing for the purchase and sale of each pool
of Mortgage Loans shall take place on the related Closing Date. At the
Purchaser's option, each closing shall be either: by telephone, confirmed by
letter or wire as the parties shall agree; or conducted in person, at such
place as the parties shall agree.
Each closing shall be subject to each of the following conditions:
(i) all of the representations and warranties of the Company under this
Agreement shall be true and correct as of the related Closing Date and
no event shall have occurred which, with notice or the passage of time,
would constitute a default under this Agreement;
(ii) the Purchaser shall have received, or the Purchaser's attorneys
shall have received in escrow, all Closing Documents for the related
Mortgage Loans as specified in Section 2.9 of this Agreement, in such
forms as are agreed upon and acceptable to the Purchaser, duly executed
by all signatories other than the Purchaser as required pursuant to the
respective terms thereof;
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(iii) the Company shall have delivered and released to the Custodian all
documents required pursuant to this Agreement and the Custodial
Agreement, and
(iv) all other terms and conditions of this Agreement shall have been
complied with.
Subject to the foregoing conditions, the Purchaser shall pay to the
Company on each Closing Date the Purchase Price for the related Mortgage Loans
by wire transfer of immediately available funds to the account designated by
the Company.
Section 2.9. Closing Documents. With respect to each pool of Mortgage
Loans, the Closing Documents shall consist of fully executed originals of the
following documents:
(i) this Agreement, in two counterparts;
(ii) the related Custodial Agreement, dated as of the related
Cut-off Date, in three counterparts, in the form attached as Exhibit C
to this Agreement;
(iii) the related Mortgage Loan Schedule, one copy to be attached
to each counterpart of this Agreement, and to each counterpart of the
related Custodial Agreement, as the Mortgage Loan Schedule thereto;
(iv) a Receipt and Certification, as required under the Custodial
Agreement;
(v) an officer's certificate of the Company substantially in the
form of Exhibit G attached hereto; (vi) an Opinion of Counsel of the
Company, in the form of Exhibit D hereto; and (vii) a Warranty Xxxx of
Sale, in the form of Exhibit I hereto.
ARTICLE III
REPRESENTATIONS AND WARRANTIES REMEDIES AND BREACH
Section 3.1. Company Representations and Warranties. The Company hereby
represents and warrants to the Purchaser and its successors and assigns that,
as of each Closing Date:
(a) Due Organization and Authority.
The Company is a corporation duly organized, validly existing and in
good standing under the laws of the State of Virginia and is duly authorized
and licensed to originate mortgage loans (including without limitation the
Mortgage Loans) and to carry on its business as now being conducted as an
operating subsidiary of a national bank. The Company has the full corporate
power, authority and legal right to hold, transfer and convey the Mortgage
Loans and
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to execute and deliver this Agreement and to perform its obligations hereunder
and is licensed, qualified and in good standing in each state where a
Mortgaged Property is located if the laws of such state require licensing or
qualification in order to conduct business of the type conducted by the
Company, and in any event, the Company is in compliance with the laws of any
such state to the extent necessary to ensure the enforceability of the related
Mortgage Loan and the servicing of such Mortgage Loan in accordance with the
terms of this Agreement; the Company has the full corporate power and
authority to execute and deliver this Agreement and to perform in accordance
herewith; the execution, delivery and performance of this Agreement (including
without limitation all instruments of transfer to be delivered pursuant to
this Agreement) by the Company and the consummation of the transactions
contemplated hereby have been duly and validly authorized; this Agreement and
all agreements contemplated hereby have been duly executed and delivered and
constitute the valid, legal, binding and enforceable obligations of the
Company, regardless of whether such enforcement is sought in a proceeding in
equity or at law; and all requisite corporate action has been taken by the
Company to make this Agreement and all agreements contemplated hereby valid
and binding upon the Company in accordance with their terms;
(b) Ordinary Course of Business.
The consummation of the transactions contemplated by this Agreement are
in the ordinary course of business of the Company, which is in the business of
selling and servicing loans, and the transfer, assignment and conveyance of
the Mortgage Notes and the Mortgages by the Company pursuant to this Agreement
are not subject to the bulk transfer or any similar statutory provisions in
effect in any applicable jurisdiction;
(c) No Conflicts.
Neither the execution and delivery of this Agreement, the acquisition of
the Mortgage Loans by the Company, the sale of the Mortgage Loans to the
Purchaser or the transactions contemplated hereby, nor the fulfillment of or
compliance with the terms and conditions of this Agreement will conflict with
or result in a breach of any of the terms, articles of incorporation or
by-laws or any legal restriction or any agreement or instrument to which the
Company is now a party or by which it is bound, or constitute a default or
result in the violation of any law, rule, regulation, order, judgment or
decree to which the Company or its property is subject, or impair the ability
of the Purchaser to realize on the Mortgage Loans, or impair the value of the
Mortgage Loans;
(d) Ability to Service.
The Company is an approved seller/servicer of residential mortgage loans
for FNMA and Xxxxxxx Mac, with the facilities, procedures, and experienced
personnel necessary for the sound servicing of mortgage loans of the same type
as the Mortgage Loans. The Company is in good standing to sell mortgage loans
to and service mortgage loans for FNMA and Xxxxxxx Mac, and no event has
occurred, including but not limited to a change in insurance coverage, which
would make the Company unable to comply with FNMA or Xxxxxxx Mac eligibility
requirements or which would require notification to FNMA or Xxxxxxx Mac;
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(e) Reasonable Servicing Fee.
The Company acknowledges and agrees that the Servicing Fee represents
reasonable compensation for performing such services and that the entire
Servicing Fee shall be treated by the Company, for accounting and tax
purposes, as compensation for the servicing and administration of the Mortgage
Loans pursuant to this Agreement;
(f) Ability to Perform.
The Company does not believe, nor does it have any reason or cause to
believe, that it cannot perform each and every covenant contained in this
Agreement. The Company is solvent and the sale of the Mortgage Loans will not
cause the Company to become insolvent. The sale of the Mortgage Loans is not
undertaken to hinder, delay or defraud any of the Company's creditors;
(g) No Litigation Pending.
There is no action, suit, proceeding or investigation pending or
threatened against the Company which, either in any one instance or in the
aggregate, may result in any material adverse change in the business,
operations, financial condition, properties or assets of the Company, or in
any material impairment of the right or ability of the Company to carry on its
business substantially as now conducted, or lead to any material liability on
the part of the Company, or which would draw into question the validity of
this Agreement or the Mortgage Loans or of any action taken or to be
contemplated herein, or which would be likely to impair materially the ability
of the Company to perform under the terms of this Agreement. There is no
action, suit, proceeding or investigation pending against the Company with
respect to the Mortgage Loans relating to fraud, origination, predatory
lending, servicing or closing practices;
(h) No Consent Required.
No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by the Company of or compliance by the Company with this Agreement
or the sale of the Mortgage Loans as evidenced by the consummation of the
transactions contemplated by this Agreement, or if required, such approval has
been obtained prior to the Closing Date;
(i) No Untrue Information.
Neither this Agreement nor any statement, report or other document
furnished or to be furnished pursuant to this Agreement or in connection with
the transactions contemplated hereby contains any untrue statement of fact or
omits to state a fact necessary to make the statements contained therein not
misleading;
(j) Sale Treatment.
The Company has determined that the disposition of the Mortgage Loans
pursuant to this Agreement will be afforded sale treatment for accounting and
tax purposes;
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(k) No Material Change.
There has been no material adverse change in the business, operations,
financial condition or assets of the Company since the date of the Company's
most recent financial statements;
(l) No Brokers' Fees.
The Company has not dealt with any broker, investment banker, agent or
other Person that may be entitled to any commission or compensation in the
connection with the sale of the Mortgage Loans; and
(m) MERS.
The Company is a member of MERS in good standing and will comply in all
material respects with the rules and procedures of MERS in connection with the
servicing of the MERS Mortgage Loans for as long as such Mortgage Loans are
registered with MERS.
Section 3.2. Representations and Warranties Regarding Individual
Mortgage Loans. As to each Mortgage Loan, the Company hereby represents and
warrants to the Purchaser and its successors and assigns that as of the
related Closing Date (except as set forth in (i) below):
(i) Mortgage Loans as Described.
The information set forth in the Mortgage Loan Schedule is true and
correct as of the related Cut-off Date.
(ii) Payment History.
All payments required to be made up to the related Cut off Date for each
Mortgage Loan under the terms of the Mortgage Note have been made and
credited. No payment under any Mortgage Loan has been 30 days delinquent more
than one time within twelve months prior to the related Closing Date;
(iii) No Outstanding Charges.
There are no defaults by the Company or the Mortgagor in complying with
the terms of the Mortgage Note or Mortgage, and all taxes, governmental
assessments, insurance premiums, water, sewer and municipal charges, which
previously became due and owing have been paid, or an escrow of funds has been
established for every such item which remains unpaid and which has been
assessed but is not yet due and payable;
(iv) Original Terms Unmodified.
The terms of the Mortgage Note and Mortgage have not been impaired,
waived, altered or modified in any respect, except by a written instrument
which has been recorded, if
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necessary to protect the interests of the Purchaser and the lien priority of
the related Mortgage, and which has been delivered to the Purchaser. The
substance of any such waiver, alteration or modification has been approved by
the mortgage insurer, if the Mortgage Loan is insured, the title insurer, to
the extent required by the policy, and its terms are reflected on the Mortgage
Loan Schedule. No Mortgagor has been released, in whole or in part;
(v) No Defenses.
The Mortgage Loan is not subject to any right of rescission, set-off,
counterclaim or defense, including without limitation the defense of usury,
nor will the operation of any of the terms of the Mortgage Note or the
Mortgage, or the exercise of any right thereunder, render either the Mortgage
Note or the Mortgage unenforceable, in whole or in part, or subject to any
right of rescission, set-off, counterclaim or defense, including without
limitation the defense of usury, and no such right of rescission, set-off,
counterclaim or defense has been asserted with respect thereto;
(vi) No Satisfaction of Mortgage.
The Mortgage has not been satisfied, canceled, subordinated or
rescinded, in whole or in part, and the Mortgaged Property has not been
released from the lien of the Mortgage, in whole or in part, nor has any
instrument been executed that would effect any such satisfaction, release,
cancellation, subordination or rescission;
(vii) Validity of Mortgage Documents.
The Mortgage Note, the Mortgage and related documents are genuine, and
each is the legal, valid and binding obligation of the maker thereof
enforceable in accordance with its terms. All parties to the Mortgage Note and
the Mortgage had legal capacity to enter into the Mortgage Loan and to execute
and deliver the Mortgage Note and the Mortgage, and the Mortgage Note and the
Mortgage have been duly and properly executed by such parties;
(viii) No Fraud.
No misrepresentation or fraud has taken place on the part of the
Company, the Mortgagor, any third party originator of such Mortgage Loan or
any other Person, including without limitation, any appraiser, any builder or
developer, or any other party involved in the origination of the Mortgage Loan
or in the application of any insurance in relation to such Mortgage Loan;
(ix) Compliance with Applicable Laws.
Any and all requirements of any federal, state or local law including,
without limitation, usury, truth-in-lending, real estate settlement
procedures, consumer credit protection, equal credit opportunity and
disclosure laws or unfair and deceptive practices laws applicable to the
Mortgage Loan including, without limitation, any provisions relating to
prepayment penalties, have been complied with, the consummation of the
transactions contemplated hereby will not involve the violation of any such
laws or regulations. Each Mortgage Loan at the time it was made complied in
all material respects with applicable local, state and federal laws,
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including, but not limited to, all applicable predatory and abusive lending
laws. The Company shall maintain in its possession, available for the
Purchaser's inspection, and shall deliver to the Purchaser upon demand,
evidence of compliance with all such requirements;
(x) Location and Type of Mortgaged Property.
The Mortgaged Property is located in the state identified in the related
Mortgage Loan Schedule and consists of a contiguous parcel of real property
with a detached single family residence erected thereon, or a two- to
four-family dwelling, or an individual condominium unit in a condominium
project, or an individual unit in a planned unit development;
(xi) Valid First Lien.
The Mortgage is a valid, subsisting and enforceable first lien on the
Mortgaged Property, including all buildings on the Mortgaged Property and all
installations and mechanical, electrical, plumbing, heating and air
conditioning systems located in or annexed to such buildings, and all
additions, alterations and replacements made at any time with respect to the
foregoing. The lien of the Mortgage is subject only to:
(1) the lien of current real property taxes and assessments
not yet due and payable;
(2) covenants, conditions and restrictions, rights of way,
easements and other matters of the public record as of the date of
recording acceptable to mortgage lending institutions generally
and specifically referred to in the lender's title insurance
policy or attorney's title opinion delivered to the originator of
the Mortgage Loan and (i) referred to or otherwise considered in
the appraisal made for the originator of the Mortgage Loan and
(ii) which do not adversely affect the Appraised Value of the
Mortgaged Property set forth in such appraisal; and
(3) other matters to which like properties are commonly
subject which do not materially interfere with the benefits of the
security intended to be provided by the mortgage or the use,
enjoyment, value or marketability of the related Mortgaged
Property;
Any security agreement, chattel mortgage or equivalent document related
to and delivered in connection with the Mortgage Loan establishes and creates
a valid, subsisting and enforceable first lien and first priority security
interest on the property described therein and the Company has full right to
sell and assign the same to the Purchaser;
(xii) Full Disbursement of Proceeds.
The proceeds of the Mortgage Loan have been fully disbursed, except for
escrows established or created due to seasonal weather conditions, and there
is no requirement for future advances thereunder. All costs, fees and expenses
incurred in making or closing the Mortgage Loan and the recording of the
Mortgage were paid, and the Mortgagor is not entitled to any refund of any
amounts paid or due under the Mortgage Note or Mortgage;
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(xiii) Ownership.
The Company is the sole owner of record and holder of the Mortgage Loan
and the related Mortgage Note and the Mortgage are not assigned or pledged,
and the Company has good and marketable title thereto and has full right and
authority to transfer and sell the Mortgage Loan to the Purchaser. The Company
is transferring the Mortgage Loan free and clear of any and all encumbrances,
liens, pledges, equities, participation interests, claims, charges or security
interests of any nature encumbering such Mortgage Loan;
(xiv) Origination/Doing Business.
The Mortgage Loan was originated by a savings and loan association, a
savings bank, a commercial bank, a credit union, an insurance company, or
similar institution which is supervised and examined by a federal or state
authority or by a mortgagee approved by the Secretary of Housing and Urban
Development pursuant to Sections 203 and 211 or the National Housing Act. All
parties which have had any interest in the Mortgage Loan, whether as
mortgagee, assignee, pledgee or otherwise, are (or, during the period in which
they held and disposed of such interest, were) (1) in compliance with any and
all applicable licensing requirements of the laws of the state wherein the
Mortgaged Property is located, and any qualification requirements of FNMA or
Xxxxxxx Mac, and (2) organized under the laws of such state, or (3) qualified
to do business in such state, or (4) federal savings and loan associations or
national banks having principal offices in such state, or (5) not doing
business in such state;
(xv) Title Insurance.
The Mortgage Loan is covered by an ALTA lender's title insurance policy
or other generally acceptable form of policy of insurance acceptable to FNMA
or Xxxxxxx Mac, issued by a title insurer acceptable to FNMA or Xxxxxxx Mac
and qualified to do business in the jurisdiction where the Mortgaged Property
is located, insuring the Company, its successors and assigns, as to the first
priority lien of the Mortgage in the original principal amount of the Mortgage
Loan (subject only to the exceptions contained in clauses (1), (2) and (3) of
paragraph (xi) of this Section 3.2) and in the case of ARM Loans against any
loss by reason of the invalidity or unenforceability of the lien resulting
from the provisions of such Mortgage provided for adjustment to the applicable
Mortgage Interest Rate and Monthly Payment; provided, however, that in the
case of any Mortgage Loan secured by a Mortgaged Property located in a
jurisdiction where such policies are generally not available, the Mortgage
Loan is the subject of an opinion of counsel of the type customarily rendered
in such jurisdiction in lieu of title insurance. The Company is the sole
insured of such lender's title insurance policy, and such lender's title
insurance policy is in full force and effect and will be in force and effect
upon the consummation of the transactions contemplated by this Agreement. No
claims have been made under such lender's title insurance policy and no prior
holder of the Mortgage, including the Company, has done, by act or omission,
anything which would impair the coverage of such lender's title insurance
policy. The Company has not done, by act or omission, anything that would
impair the coverage of such lender's title insurance policy. In connection
with the issuance of such lender's title insurance policy no unlawful fee,
commission, kickback or other unlawful compensation or value of any kind has
been or will be received, retained or realized by
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any attorney, firm or other person or entity, and no such unlawful items have
been received, retained or realized by the Company;
(xvi) No Mechanics' Liens.
There are no mechanics' or similar liens or claims which have been filed
for work, labor or material (and no rights are outstanding that under the law
could give rise to such liens) affecting the related Mortgaged Property which
are or may be liens prior to, or equal or coordinate with, the lien of the
related Mortgage which are not insured against by the title insurance policy
referenced in Section (xv) above;
(xvii) Location of Improvements; No Encroachments.
Except as insured against by the title insurance policy referenced in
Section (xv) above, all improvements which were considered in determining the
Appraised Value of the Mortgaged Property lay wholly within the boundaries and
building restriction lines of the Mortgaged Property and no improvements on
adjoining properties encroach upon the Mortgaged Property. No improvement
located on or being part of the Mortgaged Property is in violation of any
applicable zoning law or regulation;
(xviii) Customary Provisions.
The Mortgage contains customary and enforceable provisions such as to
render the rights and remedies of the holder thereof adequate for the
realization against the Mortgaged Property of the benefits of the security
provided thereby, including, (i) in the case of a Mortgage designated as a
deed of trust, by trustee's sale, and (ii) otherwise by judicial foreclosure.
There is no homestead or other exemption available to a Mortgagor which would
interfere with the right to sell the Mortgaged Property at a trustee's sale or
the right to foreclose the Mortgage;
(xix) Occupancy of the Mortgaged Property.
As of the date of origination, the Mortgaged Property was lawfully
occupied under Applicable Law;
(xx) No Additional Collateral.
The Mortgage Note is not and has not been secured by any collateral,
pledged account or other security except the lien of the corresponding
Mortgage and the security interest of any applicable security agreement or
chattel mortgage referred to in (xi) above;
(xxi) Deeds of Trust.
In the event that the Mortgage constitutes a deed of trust, a trustee,
duly qualified under Applicable Law to serve as such, has been properly
designated and currently so serves and is named in the Mortgage, and no fees
or expenses are or will become payable by the Mortgagee to the trustee under
the deed of trust, except in connection with a trustee's sale after default by
the Mortgagor;
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(xxii) Transfer of Mortgage Loans.
The Assignment is in recordable form and is acceptable for recording
under the laws of the jurisdiction in which the Mortgaged Property is located;
(xxiii) Mortgaged Property Undamaged.
The Mortgaged Property is undamaged by water, fire, earthquake or earth
movement, windstorm, flood, hurricane, tornado or other casualty so as to
affect adversely the value of the Mortgaged Property as security for the
Mortgage Loan or the use for which the premises were intended;
(xxiv) Collection Practices; Escrow Deposits.
The origination and collection practices used with respect to the
Mortgage Loan have been in accordance with Acceptable Servicing Practices, and
have been in all material respects legal and proper, and in accordance with
the terms of the Mortgage Note and Mortgage. All Escrow Payments have been
collected in full compliance with state and federal law. An escrow of funds is
not prohibited by Applicable Law and has been established to pay for every
item that remains unpaid and has been assessed but is not yet due and payable.
No escrow deposits or Escrow Payments or other charges or payments due the
Company have been capitalized under the Mortgage Note;
(xxv) No Condemnation.
There is no proceeding pending or threatened for the total or partial
condemnation of the related Mortgaged Property;
(xxvi) The Appraisal.
The Mortgage Loan Documents contain an appraisal of the related
Mortgaged Property by an appraiser who had no interest, direct or indirect, in
the Mortgaged Property or in any loan made on the security thereof; and whose
compensation is not affected by the approval or disapproval of the Mortgage
Loan, and the appraisal and the appraiser both satisfy the applicable
requirements of FNMA or Xxxxxxx Mac;
(xxvii) Insurance.
The Mortgaged Property securing each Mortgage Loan is insured by an
insurer acceptable to FNMA or Xxxxxxx Mac against loss by fire and such
hazards as are covered under a standard extended coverage endorsement, in an
amount which is not less than the lesser of 100% of the insurable value of the
Mortgaged Property and the outstanding principal balance of the Mortgage Loan,
but in no event less than the minimum amount necessary to fully compensate for
any damage or loss on a replacement cost basis; if the Mortgaged Property is a
condominium unit, it is included under the coverage afforded by a blanket
policy for the project; the insurance policy contains a standard clause naming
the originator of such mortgage loan, its successor and assigns, as insured
mortgagee; if upon origination of the Mortgage Loan, the improvements on the
Mortgaged Property were in an area identified in the Federal Register by the
Federal
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Emergency Management Agency as having special flood hazards, a flood insurance
policy meeting the requirements of the current guidelines of the Federal
Insurance Administration is in effect with a generally acceptable insurance
carrier, in an amount representing coverage not less than the least of (A) the
outstanding principal balance of the Mortgage Loan, (B) the full insurable
value and (C) the maximum amount of insurance which was available under the
Flood Disaster Protection Act of 1983, as amended; and the Mortgage obligates
the mortgagor thereunder to maintain all such insurance at the mortgagor's
cost and expense and the Company has not acted or failed to act so as to
impair the coverage of any such insurance policy or the validity, binding
effect and enforceability thereof;
(xxviii) Servicemembers Civil Relief Act.
The Mortgagor has not notified the Company, and the Company has no
knowledge of any relief requested or allowed to the Mortgagor under the
Servicemembers Civil Relief Act, as amended, or any similar state law;
(xxix) Origination; Payment Terms.
The Mortgage Loan was originated by a mortgagee approved by the
Secretary of Housing and Urban Development pursuant to Sections 203 and 211 of
the National Housing Act, a savings and loan association, a savings bank, a
commercial bank, credit union, insurance company or other similar institution
which is supervised and examined by a federal or state authority. The
documents, instruments and agreements submitted for loan underwriting were not
falsified and contain no untrue statement of material fact or omit to state a
material fact required to be stated therein or necessary to make the
information and statements therein not misleading. No Mortgage Loan contains
terms or provisions which would result in negative amortization. Principal
payments on the Mortgage Loan commenced no more than sixty (60) days after
funds were disbursed in connection with the Mortgage Loan. The Mortgage Note
is payable in equal monthly installments of principal and interest, which
installments of interest, with respect to Adjustable Rate Mortgage Loans, are
subject to change due to the adjustments to the Mortgage Interest Rate on each
Interest Rate Adjustment Date, with interest calculated and payable in
arrears, sufficient to amortize the Mortgage Loan fully by the stated maturity
date, over an original term of not more than thirty (30) years from
commencement of amortization. The Mortgage Loan is payable on the first day of
each month. There are no Convertible Mortgage Loans which contain a provision
allowing the Mortgagor to convert the Mortgage Note from an adjustable
interest rate Mortgage Note to a fixed interest rate Mortgage Note. No
Mortgage Loan is a balloon mortgage loan that has an original stated maturity
of less than seven (7) years;
(xxx) No Defaults.
Except with respect to delinquencies identified on the Mortgage Loan
Schedule, there is no default, breach, violation or event of acceleration
existing under any Mortgage or Mortgage Note and no event that, with the
passage of time or with notice and the expiration of any grace or cure period,
would constitute a default, breach, violation or event of acceleration, and
the Company has not waived any default, breach, violation or event of
acceleration;
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(xxxi) Loan-to-Value Ratio; Modifications; No Foreclosures.
The Loan-to-Value Ratio of each Mortgage Loan was less than 125% at the
time of its origination or refinancing, as applicable. No Mortgage Loan is
subject to a written foreclosure agreement or pending foreclosure proceedings;
(xxxii) Primary Mortgage Insurance.
Each Mortgage Loan with an LTV at origination in excess of 80% will be
subject to a Primary Mortgage Insurance Policy, issued by an insurer
acceptable to FNMA or Xxxxxxx Mac, in at least such amounts as are required by
Xxxxxxx Mac or FNMA. All provisions of such Primary Mortgage Insurance Policy
have been and are being complied with, such policy is in full force and
effect, and all premiums due thereunder have been paid. Any Mortgage subject
to any such Primary Mortgage Insurance Policy obligates the Mortgagor
thereunder to maintain such insurance and to pay all premiums and charges in
connection therewith unless terminable in accordance with Xxxxxxx Mac
standards or Applicable Law;
(xxxiii) Underwriting Guidelines.
The Mortgage Loan was underwritten in accordance with the Company's
underwriting guidelines in effect at the time of origination with exceptions
thereto exercised in a reasonable manner;
(xxxiv) No Violation of Environmental Laws.
The Mortgaged Property is in material compliance with all applicable
environmental laws pertaining to environmental hazards including, without
limitation, asbestos, and neither the Company nor the related Mortgagor, has
received any notice of any violation or potential violation of such law;
(xxxv) Adverse Selection.
The Company used no adverse selection procedures in selecting the
Mortgage Loan from among the outstanding first-lien residential mortgage loans
owned by it which were available for inclusion in the Mortgage Loans;
(xxxvi) No Bankruptcy.
No Mortgagor was a debtor in any state or federal bankruptcy or
insolvency proceeding at the time the Mortgage Loan was originated and as of
the related Closing Date, the Company has not received notice that any
Mortgagor is a debtor under any state or federal bankruptcy or insolvency
proceeding;
(xxxvii) No Additional Payments.
There is no obligation on the part of the Company or any other party to
make payments in addition to those made by the Mortgagor;
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(xxxviii) Comparable Mortgage Loan File.
Each document or instrument in the related Mortgage File is in a form
generally acceptable to prudent mortgage lenders that regularly originate or
purchase mortgage loans comparable to the Mortgage Loans for sale to prudent
investors in the secondary market that invest in mortgage loans such as the
Mortgage Loans;
(xxxix) Predatory Lending Regulations.
No Mortgage Loan is a High Cost Loan or Covered Loan, as applicable, and
no Mortgage Loan originated on or after October 1, 2002 through March 6, 2003
is governed by the Georgia Fair Lending Act. No Mortgage Loan is covered by
the Home Ownership and Equity Protection Act of 1994 and no Mortgage Loan is
in violation of any comparable state or local law. The Mortgaged Property is
not located in a jurisdiction where a breach of this representation with
respect to the related Mortgage Loan may result in additional assignee
liability to the Purchaser, as determined by Purchaser in its reasonable
discretion. No predatory or deceptive lending practices, including, without
limitation, the extension of credit without regard to the ability of the
Mortgagor to repay and the extension of credit which has no apparent benefit
to the Mortgagor, were employed in the origination of the Mortgage Loan. Each
Mortgage Loan is in compliance with the anti-predatory lending eligibility for
purchase requirements of Xxxxxx Mae's Selling Guide;
(xl) Fair Credit Report Act.
As to each consumer report (as defined in the Fair Credit Reporting Act,
Public Law 91-508) or other credit information furnished by the Company to the
Purchaser, that the Company has full right and authority and is not precluded
by law or contract from furnishing such information to the Purchaser and the
Purchaser is not precluded by the terms of the Mortgage Loan Documents from
furnishing the same to any subsequent or prospective purchaser of such
Mortgage. The Company shall hold the Purchaser harmless from any and all
damages, losses, costs and expenses (including attorney's fees) arising from
disclosure of credit information in connection with the Purchaser's secondary
marketing operations and the purchase and sale of mortgages. The Company has
in its capacity as servicer, for each Mortgage Loan, fully furnished, in
accordance with the Fair Credit Reporting Act and its implementing
regulations, accurate and complete information (e.g., favorable and
unfavorable) on its borrower credit files to Equifax, Experian and Trans Union
Credit Information Company (three of the credit repositories), on a monthly
basis. The Servicer will transmit full-file credit reporting data for each
Mortgage Loan pursuant to Xxxxxx Mae Guide Announcement 95-19 and that for
each Mortgage Loan, Servicer agrees it shall report one of the following
statuses each month as follows: new origination, current, delinquent (30-,
60-, 90-days, etc.), foreclosed, or charged-of;
(xli) [Reserved];
(xlii) Single-premium Credit Life Insurance Policy.
In connection with the origination of any Mortgage Loan, no proceeds
from any Mortgage Loan were used to finance or acquire a single-premium credit
life insurance policy. No Mortgagor was required to purchase any
single-premium credit insurance policy (e.g., life,
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disability, accident, unemployment, or health insurance product) or debt
cancellation agreement as a condition of obtaining the extension of credit. No
Mortgagor obtained a prepaid single-premium credit insurance policy (e.g.,
life, disability, accident, unemployment, mortgage, or health insurance) in
connection with the origination of the Mortgage Loan; no proceeds from any
Mortgage Loan were used to purchase single-premium credit insurance policies
or debt cancellation agreements as part of the origination of, or as a
condition to closing, such Mortgage Loan;
(xliii) Prepayment Penalty.
The Mortgage Loan is subject to a prepayment penalty as provided in the
related Mortgage Note except as set forth on the related Mortgage Loan
Schedule. With respect to each Mortgage Loan that has a prepayment penalty
feature, each such prepayment penalty is enforceable and will be enforced by
the Company for the benefit of the Purchaser, and each prepayment penalty is
permitted pursuant to federal, state and local law. Each such prepayment
penalty is in an amount not more than the maximum amount permitted under
applicable law and no such prepayment penalty may be imposed for a term in
excess of five (5) years with respect to Mortgage Loans originated prior to
October 1, 2002. With respect to Mortgage Loans originated on or after October
1, 2002, the duration of the prepayment period shall not exceed three (3)
years from the date of the Mortgage Note unless the Mortgage Loan was modified
to reduce the prepayment period to no more than three (3) years from the date
of the note and the Mortgagor was notified in writing of such reduction in
prepayment period. With respect to any Mortgage Loan that contains a provision
permitting imposition of a premium upon a prepayment prior to maturity: (i)
prior to the loan's origination, the Mortgagor agreed to such premium in
exchange for a monetary benefit, including but not limited to a rate or fee
reduction, (ii) prior to the loan's origination, the Mortgagor was offered the
option of obtaining a mortgage loan that did not require payment of such a
premium, (iii) the prepayment premium is disclosed to the Mortgagor in the
loan documents pursuant to applicable state, local and federal law, and (iv)
notwithstanding any state, local or federal law to the contrary, the Company
shall not impose such prepayment premium in any instance when the mortgage
debt is accelerated as the result of the Mortgagor's default in making the
loan payments;
(xliv) Qualified Mortgage.
Each Mortgage Loan is a "qualified mortgage" within Section 860G(a)(3)
of the Code.
(xlv) No Mobile Homes or Manufactured Dwellings.
No Mortgage Loan is secured by a residence or dwelling that is a mobile
home or a manufactured dwelling;
(xlvi) Compliance with Anti-Money Laundering Laws.
The Company has complied with all applicable anti-money laundering laws
and regulations, including without limitation the USA Patriot Act of 2001
(collectively, the "Anti-Money Laundering Laws"); the Company has established
an anti-money laundering compliance program as required by the Anti-Money
Laundering Laws, has conducted the requisite due
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diligence in connection with the origination of each Mortgage Loan for
purposes of the Anti-Money Laundering Laws, including with respect to the
legitimacy of the applicable Mortgagor and the origin of the assets used by
the said Mortgagor to purchase the property in question, and maintains, and
will maintain, sufficient information to identify the applicable Mortgagor for
purposes of the Anti-Money Laundering Laws;
(xlvii) No "Pledged Asset" Loans.
No Mortgage Loan is a "pledged asset" mortgage loan;
(xlviii) No Construction Loans.
No Mortgage Loan was made in connection with (i) the construction or
rehabilitation of a Mortgaged Property or (ii) facilitating the trade-in or
exchange of a Mortgaged Property, other than a construction to permanent loan
which has converted to a permanent Mortgage Loan;
(xlix) Mortgagors.
The Mortgagor with respect to each Mortgage Loan is one or more natural
persons and/or trustees for an Illinois land trust or a trustee under a
"living trust" and such "living trust" is in compliance with FNMA or Xxxxxxx
Mac guidelines. In the event a Mortgagor is a trustee, the related borrower is
a natural person; and
(l) Mortgagors.
All of the terms of the related Mortgage Note pertaining to interest
rate adjustments, payment adjustments and adjustments of the outstanding
principal balance, if any, are enforceable and such adjustments will not
affect the priority of the lien of the related Mortgage; all such adjustments
on such Mortgage Loan have been made properly and in accordance with the
provisions of such Mortgage Loan;
(li) Underwriting Methodology.
The methodology used in underwriting the extension of credit for each
Mortgage Loan employs, in part, objective mathematical principles which relate
the Mortgagor's income, assets and liabilities to the proposed payment and
such underwriting methodology does not rely on the extent of the Mortgagor's
equity in the collateral as the principal determining factor in approving such
credit extension. Such underwriting methodology confirmed that at the time of
origination (application/approval) the Mortgagor had a reasonable ability to
make timely payments on the Mortgage Loan;
(lii) Points and Fees.
All points and fees related to each Mortgage Loan were disclosed in
writing to the Mortgagor in accordance with applicable state and federal law
and regulation. Except in the case of a Mortgage Loan in an original principal
amount of less than $60,000 which would have resulted in an unprofitable
origination, no Mortgagor was charged "points and fees" (whether or
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not financed) in an amount greater than 5% of the principal amount of such
Mortgage Loan, such 5% limitation is calculated in accordance with Xxxxxx
Mae's anti-predatory lending requirements as set forth in the Xxxxxx Xxx
Selling Guide;
(liii) Fees Charges.
All fees and charges (including finance charges) and whether or not
financed, assessed, collected or to be collected in connection with the
origination and servicing of each Mortgage Loan has been disclosed in writing
to the Mortgagor in accordance with applicable state and federal law and
regulation; and
(liv) Arbitration.
With respect to any Mortgage Loan originated on or after August 1, 2004,
neither the related Mortgage nor the related Mortgage Note requires the
Mortgagor to submit to arbitration to resolve any dispute arising out of or
relating in any way to the Mortgage Loan transaction.
Section 3.3. Repurchase.
It is understood and agreed that the representations and warranties set
forth in Sections 3.1 and 3.2 shall survive the sale of the Mortgage Loans to
the Purchaser and the delivery of the Mortgage Loan Documents to the Custodian
and shall inure to the benefit of the Purchaser and its successors and
assigns, notwithstanding any restrictive or qualified endorsement on any
Mortgage Note or Assignment of Mortgage or the examination or failure to
examine any Mortgage File. Upon discovery by either the Company or the
Purchaser of a breach of any of the foregoing representations and warranties
which materially and adversely affects the value of the Mortgage Loans or the
interest of the Purchaser (or which materially and adversely affects the
interests of Purchaser in the related Mortgage Loan in the case of a
representation and warranty relating to a particular Mortgage Loan), the party
discovering such breach shall give prompt written notice to the other.
Notwithstanding anything herein to the contrary, for the purposes of
determining whether a breach of any of the foregoing representations and
warranties shall have occurred, any knowledge qualifier shall be disregarded
as if such knowledge qualification had not been given.
Within 90 days of the earlier of either discovery by or notice to the
Company of any breach of a representation or warranty which materially and
adversely affects the value of the Mortgage Loans, (i) the Company shall use
its best efforts promptly to cure such breach in all material respects and
(ii) if such breach cannot be cured, the Company shall, at the Purchaser's
option, repurchase such Mortgage Loan at the Repurchase Price. Notwithstanding
the above sentence, within thirty (30) days of the earlier of either discovery
by, or notice to, the Company of any breach of the representations or
warranties set forth in clauses (xxxix), (xl), (xlii), (xliii), (xliv) or
(liv) of Section 3.2, the Company shall repurchase such Mortgage Loan at the
Repurchase Price, together with all expenses incurred by the Purchaser as a
result of such repurchase. In the event that a breach shall involve any
representation or warranty set forth in Section 3.1, and such breach cannot be
cured within 90 days of the earlier of either discovery by or notice to the
Company of such breach, all of the Mortgage Loans shall, at the Purchaser's
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option, be repurchased by the Company at the Repurchase Price. Any repurchase
of a Mortgage Loan or Loans pursuant to the foregoing provisions of this
Section 3.3 shall be accomplished by deposit in the Custodial Account of the
amount of the Repurchase Price as required in Section 4.4, for distribution to
Purchaser on the Remittance Date for the month following the date of the
repurchase, after deducting therefrom any amount received in respect of such
repurchased Mortgage Loan or Loans and being held in the Custodial Account for
future distribution for application in accordance with Section 5.1.
If pursuant to the foregoing provisions the Company repurchases a
Mortgage Loan that is a MERS Mortgage Loan, the Company shall either (i) cause
MERS to execute and deliver an assignment of the Mortgage in recordable form
to transfer the Mortgage from MERS to the Company on behalf of the Purchaser,
and shall cause such Mortgage to be removed from registration on the MERS(R)
System in accordance with MERS' rules and regulations or (ii) cause MERS to
designate on the MERS(R) System the Company as the beneficial holder with
respect to such Mortgage Loan.
At the time of repurchase, the Purchaser and the Company shall arrange
for the reassignment of the repurchased Mortgage Loans to the Company and the
delivery to the Company of any documents held by the Custodian relating to the
repurchased Mortgage Loans. In the event of a repurchase, the Company shall,
simultaneously with such reassignment, give written notice to the Purchaser
that such repurchase has taken place and amend the Mortgage Loan Schedule to
reflect the withdrawal of the repurchased Mortgage Loans from this Agreement.
In addition to such repurchase obligation, the Company shall indemnify
the Purchaser and its successors and assigns, and hold them harmless against
any losses, damages, penalties, fines, forfeitures, reasonable and necessary
legal fees and related costs, judgments, and other costs and expenses
resulting from any claim, demand, defense or assertion based on or grounded
upon, or resulting from, a breach of the Company's representations and
warranties contained in this Agreement. It is understood and agreed that the
obligations of the Company set forth in this Section 3.3 to cure or repurchase
a defective Mortgage Loan and to indemnify the Purchaser and its successors
and assigns as provided in this Section 3.3, constitute the sole remedies of
the Purchaser respecting a breach of the foregoing representations and
warranties.
Any cause of action against the Company relating to or arising out of
the breach of any representations and warranties made in Sections 3.1 and 3.2
shall accrue as to any Mortgage Loan upon the earliest of (i) discovery of
such breach by the Company or the Purchaser or notice thereof by the Purchaser
to the Company, (ii) failures by the Company to cure such breach or repurchase
such Mortgage Loan as specified above, and (iii) demand upon the Company by
the Purchaser for compliance with this Agreement.
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ARTICLE IV
ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
Section 4.1. Company to Act as Servicer.
The Company, as an independent contractor, shall service and administer
the Mortgage Loans and shall have full power and authority, acting alone or
through the utilization of a third party servicing provider, to do any and all
things in connection with such servicing and administration which the Company
may deem necessary or desirable, consistent with the terms of this Agreement
and with Accepted Servicing Practices.
Consistent with the terms of this Agreement and subject to the REMIC
Provisions if the Mortgage Loans have been transferred to a REMIC, the Company
may waive, modify or vary any term of any Mortgage Loan or consent to the
postponement of strict compliance with any such term or in any manner grant
indulgence to any Mortgagor if in the Company's reasonable and prudent
determination such waiver, modification, postponement or indulgence is not
materially adverse to the Purchaser. In the event of any such modification
which permits the deferral of interest or principal payments on any Mortgage
Loan, the Company shall, on the Business Day immediately preceding the
Remittance Date in any month in which any such principal or interest payment
has been deferred, deposit in the Custodial Account from its own funds, in
accordance with Section 5.3, the difference between (a) such month's principal
and one month's interest at the Mortgage Loan Remittance Rate on the unpaid
principal balance of such Mortgage Loan and (b) the amount paid by the
Mortgagor. The Company shall be entitled to reimbursement for such advances to
the same extent as for all other advances made pursuant to Section 5.3.
Without limiting the generality of the foregoing, the Company shall continue,
and is hereby authorized and empowered, to execute and deliver on behalf of
itself and the Purchaser, all instruments of satisfaction or cancellation, or
of partial or full release, discharge and all other comparable instruments,
with respect to the Mortgage Loans and with respect to the Mortgaged
Properties. If reasonably required by the Company, the Purchaser shall furnish
the Company with any powers of attorney and other documents necessary or
appropriate to enable the Company to carry out its servicing and
administrative duties under this Agreement.
The Company shall notify the Purchaser, in writing, of any waiver,
modification, forbearance, postponement, indulgence or amendment with respect
to any term of any Mortgage Loan and the date thereof, and shall deliver to
the Purchaser (or, at the direction of the Purchaser, the Custodian) for
deposit in the related Mortgage File, an original counterpart of the agreement
relating to such waiver, modification, forbearance, postponement, indulgence,
assumption or amendment, promptly (and in any event within ten Business Days)
following the execution thereof; provided, however, that if any such waiver,
modification, forbearance, postponement, indulgence, assumption or amendment
is required by applicable law to be recorded, the Company (i) shall deliver to
the Purchaser (or, at the direction of the Purchaser, the Custodian) a copy
thereof and (ii) shall deliver to the Purchaser (or, at the direction of the
Purchaser, the Custodian) such document, with evidence of notification upon
receipt thereof from the public recording office. The Purchaser shall have the
right, but not the obligation, to waive the application of the Company's
requirement to deliver to the Purchaser (or, at the direction of the
Purchaser, the Custodian) a forbearance agreement if the Company's notice to
the Purchaser of
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such forbearance agreement indicates that the term of such forbearance
agreement is for a period of less than six months.
In servicing and administering the Mortgage Loans, the Company shall
employ procedures (including collection procedures) and exercise the same care
that it customarily employs and exercises in servicing and administering
mortgage loans for its own account, giving due consideration to Accepted
Servicing Practices where such practices do not conflict with the requirements
of this Agreement, and the Purchaser's reliance on the Company.
The Company is authorized and empowered by the Purchaser, in its own
name, when the Company believes it appropriate in its reasonable judgment to
register any Mortgage Loan on the MERS(R) System, or cause the removal from
the registration of any Mortgage Loan on the MERS(R) System, to execute and
deliver, on behalf of the Purchaser, any and all instruments of assignment and
other comparable instruments with respect to such assignment or re-recording
of a Mortgage in the name of MERS, solely as nominee for the Purchaser and its
successors and assigns. The Company will comply in all material respects with
the rules and procedures of MERS in connection with the servicing of the MERS
Mortgage Loans for as long as such Mortgage Loans are registered with MERS and
the Company shall remain in good standing with MERS.
Section 4.2. Liquidation of Mortgage Loans.
In the event that any payment due under any Mortgage Loan and not
postponed pursuant to Section 4.1 is not paid when the same becomes due and
payable, or in the event the Mortgagor fails to perform any other covenant or
obligation under the Mortgage Loan and such failure continues beyond any
applicable grace period, the Company shall take such action as (1) the Company
would take under similar circumstances with respect to a similar mortgage loan
held for its own account for investment, (2) shall be consistent with Accepted
Servicing Practices, and (3) the Company shall determine prudently to be in
the best interest of Purchaser. In the event that any payment due under any
Mortgage Loan is not postponed pursuant to Section 4.1 and remains delinquent
for a period of 30 days or any other default continues for a period of 30 days
beyond the expiration of any grace or cure period, the Company shall commence
foreclosure proceedings, the Company shall notify the Purchaser in writing of
the Company's intention to do so, and the Company shall not commence
foreclosure proceedings if the Purchaser reasonably objects to such action
within ten (10) Business Days of receiving such notice. In the event the
Purchaser objects to such foreclosure action, the Company shall not be
required to make Monthly Advances with respect to such Mortgage Loan, pursuant
to Section 5.3, and the Company's obligation to make such Monthly Advances
shall terminate on the 90th day referred to above. In such connection, the
Company shall from its own funds make all necessary and proper Servicing
Advances, provided, however, that the Company shall not be required to expend
its own funds in connection with any foreclosure or towards the restoration or
preservation of any Mortgaged Property, unless it shall determine (a) that
such preservation, restoration and/or foreclosure will increase the proceeds
of liquidation of the Mortgage Loan to the Purchaser after reimbursement to
itself for such expenses and (b) that such expenses will be recoverable by it
either through Liquidation Proceeds (respecting which it shall have priority
for purposes of withdrawals from the Custodial Account pursuant to Section
4.5) or through Insurance Proceeds (respecting which it shall have similar
priority).
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Notwithstanding anything to the contrary contained herein, in connection
with a foreclosure or acceptance of a deed in lieu of foreclosure, in the
event the Company has reasonable cause to believe that a Mortgaged Property is
contaminated by hazardous or toxic substances or wastes, or if the Purchaser
otherwise requests an environmental inspection or review of such Mortgaged
Property, such an inspection or review is to be conducted by a qualified
inspector. The cost for such inspection or review shall be borne by the
Purchaser. Upon completion of the inspection or review, the Company shall
promptly provide the Purchaser with a written report of the environmental
inspection.
After reviewing the environmental inspection report, the Purchaser shall
determine how the Company shall proceed with respect to the Mortgaged
Property. In the event (a) the environmental inspection report indicates that
the Mortgaged Property is contaminated by hazardous or toxic substances or
wastes and (b) the Purchaser directs the Company to proceed with foreclosure
or acceptance of a deed in lieu of foreclosure, the Company shall be
reimbursed for all reasonable costs associated with such foreclosure or
acceptance of a deed in lieu of foreclosure and any related environmental
clean up costs, as applicable, from the related Liquidation Proceeds, or if
the Liquidation Proceeds are insufficient to fully reimburse the Company, the
Company shall be entitled to be reimbursed from amounts in the Custodial
Account pursuant to Section 4.5 hereof. In the event the Purchaser directs the
Company not to proceed with foreclosure or acceptance of a deed in lieu of
foreclosure, the Company shall be reimbursed for all Servicing Advances made
with respect to the related Mortgaged Property from the Custodial Account
pursuant to Section 4.5 hereof.
Section 4.3. Collection of Mortgage Loan Payments.
Continuously from the date hereof until the principal and interest on
all Mortgage Loans are paid in full, the Company shall proceed diligently to
collect all payments due under each of the Mortgage Loans when the same shall
become due and payable in accordance with Accepted Servicing Practices, and
shall, in accordance with RESPA and applicable state law, take special care in
ascertaining and estimating Escrow Payments and all other charges that will
become due and payable with respect to the Mortgage Loan and the Mortgaged
Property, to the end that the installments payable by the Mortgagors will be
sufficient to pay such charges as and when they become due and payable.
Section 4.4. Establishment of and Deposits to Custodial Account.
The Company shall segregate and hold all funds collected and received
pursuant to a Mortgage Loan separate and apart from any of its own funds and
general assets and shall establish and maintain one or more Custodial
Accounts, in the form of time deposit or demand accounts, titled "SunTrust
Mortgage, Inc., in trust for the Purchaser of Residential Mortgage Loans
serviced under the Amended and Restated Flow Seller's Warranties and Servicing
Agreement, dated as of December 1, 2005", or as otherwise directed in writing
by the Purchaser or its assigns after the Closing Date in connection with any
Whole Loan Transfer or Securitization Transaction. The Custodial Account shall
be established with a Qualified Depository. Upon request of the Purchaser and
within ten (10) days thereof, the Company shall provide the Purchaser with
written confirmation of the existence of such Custodial Account. Any funds
deposited in the Custodial Account shall at all times be insured to the
fullest extent
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allowed by Applicable Law. Funds deposited in the Custodial Account may be
drawn on by the Company in accordance with Section 4.5.
The Company shall deposit in the Custodial Account within one Business
Day (or two Business Days in the case of the amounts described in clauses (3)
through (5) below) of the Company's receipt, and retain therein, the following
collections received by the Company and payments made by the Company after
each Cut-off Date, other than payments of principal and interest due on or
before such Cut-off Date, or received by the Company prior to the Cut-off Date
but allocable to a period subsequent thereto:
(1) all payments on account of principal on the Mortgage Loans,
including all Principal Prepayments, but not including Payaheads;
(2) all payments on account of interest on the Mortgage Loans,
adjusted to the Mortgage Loan Remittance Rate;
(3) all Liquidation Proceeds;
(4) all Insurance Proceeds including amounts required to be
deposited pursuant to Section 4.10 (other than proceeds to be held in
the Escrow Account and applied to the restoration or repair of the
Mortgaged Property or released to the Mortgagor in accordance with
Section 4.14), Section 4.11 and Section 4.15;
(5) all Condemnation Proceeds which are not applied to the
restoration or repair of the Mortgaged Property or released to the
Mortgagor in accordance with Section 4.14;
(6) any amount required to be deposited in the Custodial Account
pursuant to Section 4.1, 5.1, 5.3, 6.1 or 6.2;
(7) any amounts payable in connection with the repurchase of any
Mortgage Loan pursuant to Section 2.3, 3.3 or 6.2;
(8) with respect to each Principal Prepayment including, for this
purpose, the principal portion of Insurance Proceeds, Condemnation
Proceeds, and Liquidation Proceeds an amount (to be paid by the Company
out of its own funds) which, when added to all amounts allocable to
interest received in connection with the Principal Prepayment, equals
one month's interest on the amount of principal so prepaid at the
Mortgage Loan Remittance Rate;
(9) any amounts required to be deposited by the Company pursuant
to Section 4.11 in connection with the deductible clause in any blanket
hazard insurance policy; and
(10) any amounts received with respect to or related to any REO
Property and all REO Disposition Proceeds pursuant to Section 4.16.
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The foregoing requirements for deposit into the Custodial Account shall
be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, payments in the nature of late payment charges
and assumption fees, to the extent permitted by Section 6.1, need not be
deposited by the Company into the Custodial Account. Any interest paid on
funds deposited in the Custodial Account by the depository institution shall
accrue to the benefit of the Company and the Company shall be entitled to
retain and withdraw such interest from the Custodial Account pursuant to
Section 4.5. The Company shall reimburse the Custodial Account for any losses
incurred as a result of the investment of amounts on deposit in the Custodial
Account.
Section 4.5. Permitted Withdrawals From Custodial Account.
The Company shall, from time to time, withdraw funds from the Custodial
Account for the following purposes:
(1) to make payments to the Purchaser in the amounts and in the
manner provided for in Section 5.1;
(2) to reimburse itself for Monthly Advances of the Company's
funds made pursuant to Section 5.3, the Company's right to reimburse
itself pursuant to this subclause (2) being limited to amounts received
on the related Mortgage Loan which represent late payments of principal
and/or interest respecting which any such advance was made, it being
understood that, in the case of any such reimbursement, the Company's
right thereto shall be prior to the rights of the Purchaser, except
that, where the Company is required to repurchase a Mortgage Loan
pursuant to Section 2.3, 3.3 or 6.2, the Company's right to such
reimbursement shall be subsequent to the payment to the Purchaser of the
Repurchase Price pursuant to such sections and all other amounts
required to be paid to the Purchaser with respect to such Mortgage Loan;
(3) to reimburse itself for unreimbursed Servicing Advances, and
for any unpaid Servicing Fees, the Company's right to reimburse itself
pursuant to this subclause (3) with respect to any Mortgage Loan being
limited to related Liquidation Proceeds, Condemnation Proceeds,
Insurance Proceeds and such other amounts as may be collected by the
Company from the Mortgagor or otherwise relating to the Mortgage Loan,
it being understood that, in the case of any such reimbursement, the
Company's right thereto shall be prior to the rights of Purchaser,
except that where the Company is required to repurchase a Mortgage Loan
pursuant to Section 2.3, 3.3 or 6.2, in which case the Company's right
to such reimbursement shall be subsequent to the payment to the
Purchaser of the Repurchase Price pursuant to such sections and all
other amounts required to be paid to the Purchaser with respect to such
Mortgage Loan;
(4) to pay itself as servicing compensation any interest on funds
deposited in the Custodial Account;
(5) to reimburse itself for expenses incurred to the extent
reimbursable pursuant to Section 8.1;
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(6) to pay any amount required to be paid pursuant to Section 4.16
related to any REO Property, it being understood that, in the case of
any such expenditure or withdrawal related to a particular REO Property,
the amount of such expenditure or withdrawal from the Custodial Account
shall be limited to amounts on deposit in the Custodial Account with
respect to the related REO Property;
(7) to reimburse itself for any Servicing Advances or REO expenses
after liquidation of the Mortgaged Property not otherwise reimbursed
above;
(8) to reimburse the trustee with respect to any Securitization
Transaction for any unreimbursed Monthly Advances or Servicing Advances
made by the Trustee, as applicable, the right to reimbursement pursuant
to this subclause (8) with respect to any Mortgage Loan being limited to
related Liquidation Proceeds, proceeds of REO Dispositions, Condemnation
Proceeds, Insurance Proceeds and such other amounts as may be collected
by the Company from the Mortgagor or otherwise relating to the Mortgage
Loan, it being understood that, in the case of such reimbursement, such
trustee's right thereto shall be prior to the rights of the Company to
reimbursement under (2) and (3), and prior to the rights of the
Purchaser under (1);
(9) to remove funds inadvertently placed in the Custodial Account
by the Company; and
(10) to clear and terminate the Custodial Account upon the
termination of this Agreement.
In the event that the Custodial Account is interest bearing, on each
Remittance Date, the Company shall withdraw all interest earned on funds on
deposit in the Custodial Account. The Company may use such withdrawn funds
only for the purposes described in this Section 4.5.
Section 4.6. Establishment of and Deposits to Escrow Account.
The Company shall segregate and hold all funds collected and received
pursuant to a Mortgage Loan constituting Escrow Payments separate and apart
from any of its own funds and general assets and shall establish and maintain
one or more Escrow Accounts, in the form of time deposit or demand accounts,
titled, "SunTrust Mortgage, Inc., in trust for the Purchaser under the Amended
and Restated Flow Seller's Warranties and Servicing Agreement dated as of
December 1, 2005 and/or subsequent purchasers of Mortgage Loans." The Escrow
Accounts shall be established with a Qualified Depository, in a manner which
shall provide maximum available insurance thereunder. Upon request of the
Purchaser and within ten (10) days thereof, the Company shall provide the
Purchaser with written confirmation of the existence of such Escrow Account.
Funds deposited in the Escrow Account may be drawn on by the Company in
accordance with Section 4.7.
The Company shall deposit in the Escrow Account or Accounts within two
(2) Business Days of the Company's receipt, and retain therein:
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(1) all Escrow Payments collected on account of the Mortgage
Loans, for the purpose of effecting timely payment of any such items as
required under the terms of this Agreement;
(2) all amounts representing Insurance Proceeds or Condemnation
Proceeds which are to be applied to the restoration or repair of any
Mortgaged Property; and
(3) all amounts representing proceeds of any Primary Mortgage
Insurance Policy.
The Company shall make withdrawals from the Escrow Account only to
effect such payments as are required under this Agreement, as set forth in
Section 4.7. The Company shall be entitled to retain any interest paid on
funds deposited in the Escrow Account by the depository institution, other
than interest on escrowed funds required by law to be paid to the Mortgagor.
To the extent required by law, the Company shall pay interest on escrowed
funds to the Mortgagor notwithstanding that the Escrow Account may be
non-interest bearing or that interest paid thereon is insufficient for such
purposes. Notwithstanding the forgoing, the Company shall be responsible to
reimburse the Purchaser for any losses incurred as a result of the investment
of amounts on deposit in the Escrow Account.
Section 4.7. Permitted Withdrawals From Escrow Account.
Withdrawals from the Escrow Account or Accounts may be made by the
Company only:
(1) to effect timely payments of ground rents, taxes, assessments,
water rates, mortgage insurance premiums, condominium charges, fire and
hazard insurance premiums or other items constituting Escrow Payments
for the related Mortgage;
(2) to reimburse the Company for any Servicing Advances made by
the Company pursuant to Section 4.8 with respect to a related Mortgage
Loan, but only from amounts received on the related Mortgage Loan which
represent late collections of Escrow Payments thereunder;
(3) to refund to any Mortgagor any funds found to be in excess of
the amounts required under the terms of the related Mortgage Loan;
(4) for transfer to the Custodial Account and application to
reduce the principal balance of the Mortgage Loan in accordance with the
terms of the related Mortgage and Mortgage Note;
(5) for application to restoration or repair of the Mortgaged
Property in accordance with the procedures outlined in Section 4.14;
(6) to pay to the Company, or any Mortgagor to the extent required
by law, any interest paid on the funds deposited in the Escrow Account;
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(7) to remove funds inadvertently placed in the Escrow Account by
the Company;
(8) to apply the proceeds of Primary Mortgage Insurance as if such
proceeds were payments on, or Liquidation Proceeds of, the related
Mortgage Loan, as the case may be; and
(9) to clear and terminate the Escrow Account on the termination
of this Agreement.
Section 4.8. Payment of Taxes, Insurance and Other Charges.
With respect to each Mortgage Loan, the Company shall maintain accurate
records reflecting the status of ground rents, taxes, assessments, water
rates, sewer rents, and other charges which are or may become a lien upon the
Mortgaged Property and fire and hazard insurance coverage and shall obtain,
from time to time, all bills for the payment of such charges (including
renewal premiums) and shall effect payment thereof prior to the applicable
penalty or termination date, employing for such purpose deposits of the
Mortgagor in the Escrow Account which shall have been estimated and
accumulated by the Company in amounts sufficient for such purposes, as allowed
under the terms of the Mortgage. The Company assumes full responsibility for
the timely payment of all such bills and shall effect timely payment of all
such charges irrespective of each Mortgagor's faithful performance in the
payment of same of the making of the Escrow Payments, and the Company shall
make advances from its own funds to effect such payments.
Section 4.9. Protection of Accounts.
The Company may transfer the Custodial Account or the Escrow Account to
a different Qualified Depository from time to time, upon prior written notice
to the Purchaser.
Section 4.10. Maintenance of Hazard Insurance.
The Company shall cause to be maintained for each Mortgage Loan hazard
insurance such that all buildings upon the Mortgaged Property are insured by
an insurer acceptable to FNMA or Xxxxxxx Mac, against loss by fire, hazards of
extended coverage and such other hazards as are customary in the area where
the Mortgaged Property is located, in an amount which is at least equal to the
lesser of (i) the maximum insurable value of the improvements securing such
Mortgage Loan and (ii) the greater of (a) the outstanding principal balance of
the Mortgage Loan and (b) an amount such that the proceeds thereof shall be
sufficient to prevent the Mortgagor or the loss payee from becoming a
co-insurer. In the event a hazard insurance policy shall be in danger of being
terminated, or in the event the insurer shall cease to be acceptable to FNMA
or Xxxxxxx Mac, the Company shall notify the Purchaser and the related
Mortgagor, and shall use its best efforts, as permitted by Applicable Law, to
obtain from another Qualified Insurer a replacement hazard insurance policy
substantially and materially similar in all respects to the original policy.
In no event, however, shall a Mortgage Loan be without a hazard insurance
policy at any time, subject only to Section 4.11 hereof.
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If upon origination of the Mortgage Loan, the related Mortgaged Property
was located in an area identified by the Flood Emergency Management Agency as
having special flood hazards (and such flood insurance has been made
available) a flood insurance policy meeting the requirements of the current
guidelines of the Federal Insurance Administration is in effect with a
generally acceptable insurance carrier acceptable to FNMA or Xxxxxxx Mac, in
an amount representing coverage equal to the lesser of (i) the minimum amount
required, under the terms of coverage, to compensate for any damage or loss on
a replacement cost basis (or the unpaid balance of the mortgage if replacement
cost coverage is not available for the type of building insured) and (ii) the
maximum amount of insurance which is available under the Flood Disaster
Protection Act of 1973, as amended.
If a Mortgage is secured by a unit in a condominium project, the Company
shall verify that the coverage required of the owner's association, including
hazard, flood, liability, and fidelity coverage, is being maintained in
accordance with then current FNMA or Xxxxxxx Mac requirements, secure from the
owner's association its agreement to notify the Company promptly of any change
in the insurance coverage or of any condemnation or casualty loss that may
have a material effect on the value of the Mortgaged Property as security.
In the event that any Purchaser or the Company shall determine that the
Mortgaged Property should be insured against loss or damage by hazards and
risks not covered by the insurance required to be maintained by the Mortgagor
pursuant to the terms of the Mortgage, the Company shall communicate and
consult with the Mortgagor with respect to the need for such insurance and
bring to the Mortgagor's attention the desirability of protection of the
Mortgaged Property.
All policies required hereunder shall name the Company as loss payee and
shall be endorsed with standard or union mortgagee clauses, without
contribution, which shall provide for at least 30 days prior written notice of
any cancellation, reduction in amount or material change in coverage.
The Company shall not interfere with the Mortgagor's freedom of choice
in selecting either his insurance carrier or agent, provided, however, that
the Company shall not accept any such insurance policies from insurance
companies unless such companies are acceptable to FNMA and Xxxxxxx Mac and are
licensed to do business in the jurisdiction in which the Mortgaged Property is
located. The Company shall determine that such policies provide sufficient
risk coverage and amounts, that they insure the property owner, and that they
properly describe the property address.
Pursuant to Section 4.4, any amounts collected by the Company under any
such policies (other than amounts to be deposited in the Escrow Account and
applied to the restoration or repair of the related Mortgaged Property, or
property acquired in liquidation of the Mortgage Loan, or to be released to
the Mortgagor, in accordance with the Company's normal servicing procedures as
specified in Section 4.14) shall be deposited in the Custodial Account subject
to withdrawal pursuant to Section 4.5.
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Section 4.11. Maintenance of Primary Mortgage Insurance Policy; Claims.
With respect to each Mortgage Loan with a LTV in excess of 80%, the
Company shall, without any cost to the Purchaser, maintain or cause the
Mortgagor to maintain in full force and effect a Primary Mortgage Insurance
Policy insuring that portion of the Mortgage Loan in excess of a percentage in
conformance with FNMA and Xxxxxxx Mac requirements. The Company shall pay or
shall cause the Mortgagor to pay the premium thereon on a timely basis, at
least until the LTV of such Mortgage Loan is reduced to 80%, or such amount as
required by Applicable Law, or such other amount as FNMA and Xxxxxxx Mac
permits for cancellation of mortgage insurance. In the event that such Primary
Mortgage Insurance Policy shall be terminated, the Company shall obtain from
another insurer a comparable replacement policy, with a total coverage equal
to the remaining coverage of such terminated Primary Mortgage Insurance
Policy. If the insurer shall cease to be a qualified insurer, the Company
shall determine whether recoveries under the Primary Mortgage Insurance Policy
are jeopardized for reasons related to the financial condition of such
insurer, it being understood that the Company shall in no event have any
responsibility or liability for any failure to recover under the Primary
Mortgage Insurance Policy for such reason. If the Company determines that
recoveries are so jeopardized, it shall notify the Purchaser and the
Mortgagor, if required, and obtain from another qualified insurer a
replacement insurance policy. The Company shall not take any action which
would result in noncoverage under any applicable Primary Mortgage Insurance
Policy of any loss which, but for the actions of the Company would have been
covered thereunder. In connection with any assumption or substitution
agreement entered into or to be entered into pursuant to Subsection 6.1, the
Company shall promptly notify the insurer under the related Primary Mortgage
Insurance Policy, if any, of such assumption or substitution of liability in
accordance with the terms of such Primary Mortgage Insurance Policy and shall
take all actions which may be required by such insurer as a condition to the
continuation of coverage under such Primary Mortgage Insurance Policy. If such
Primary Mortgage Insurance Policy is terminated as a result of such assumption
or substitution of liability, the Company shall obtain a replacement Primary
Mortgage Insurance Policy as provided above.
In connection with its activities as servicer, the Company agrees to
prepare and present, on behalf of itself and the Purchaser, claims to the
insurer under any Primary Mortgage Insurance Policy in a timely fashion in
accordance with the terms of such Primary Mortgage Insurance Policy and, in
this regard, to take such action as shall be necessary to permit recovery
under any Primary Mortgage Insurance Policy respecting a defaulted Mortgage
Loan. Pursuant to Section 4.6, any amounts collected by the Company under any
Primary Mortgage Insurance Policy shall be deposited in the Escrow Account,
subject to withdrawal pursuant to Section 4.7.
Section 4.12. Maintenance of Mortgage Impairment Insurance.
In the event that the Company shall obtain and maintain a blanket policy
insuring against losses arising from fire and hazards covered under extended
coverage on all of the Mortgage Loans, then, to the extent such policy
provides coverage in an amount equal to the amount required pursuant to
Section 4.10 and otherwise complies with all other requirements of Section
4.10, it shall conclusively be deemed to have satisfied its obligations as set
forth in Section 4.10. The Company shall prepare and make any claims on the
blanket policy as deemed necessary by the Company in accordance with Accepted
Servicing Practices. Any amounts
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collected by the Company under any such policy relating to a Mortgage Loan
shall be deposited in the Custodial Account subject to withdrawal pursuant to
Section 4.5. Such policy may contain a deductible clause, in which case, in
the event that there shall not have been maintained on the related Mortgaged
Property a policy complying with Section 4.10, and there shall have been a
loss which would have been covered by such policy, the Company shall deposit
in the Custodial Account at the time of such loss the amount not otherwise
payable under the blanket policy because of such deductible clause, such
amount to be deposited from the Company's funds, without reimbursement
therefor. Upon request of any Purchaser, the Company shall cause to be
delivered to such Purchaser a certified true copy of such policy and a
statement from the insurer thereunder that such policy shall in no event be
terminated or materially modified without 30 days' prior written notice to
such Purchaser.
Section 4.13. Maintenance of Fidelity Bond and Errors and Omissions
Insurance.
The Company shall maintain with responsible companies, at its own
expense, a blanket Fidelity Bond and an Errors and Omissions Insurance Policy,
with broad coverage on all officers, employees or other persons acting in any
capacity requiring such persons to handle funds, money, documents or papers
relating to the Mortgage Loans ("Company Employees"). Any such Fidelity Bond
and Errors and Omissions Insurance Policy shall be in the form of the Mortgage
Banker's Blanket Bond and shall protect and insure the Company against losses,
including forgery, theft, embezzlement, fraud, errors and omissions and
negligent acts of such Company Employees. Such Fidelity Bond and Errors and
Omissions Insurance Policy also shall protect and insure the Company against
losses in connection with the release or satisfaction of a Mortgage Loan
without having obtained payment in full of the indebtedness secured thereby.
No provision of this Section 4.13 requiring such Fidelity Bond and Errors and
Omissions Insurance Policy shall diminish or relieve the Company from its
duties and obligations as set forth in this Agreement. The minimum coverage
under any such bond and insurance policy shall be at least equal to the
amounts acceptable to FNMA or Xxxxxxx Mac. Upon the request of any Purchaser,
the Company shall cause to be delivered to such Purchaser a certified true
copy of such fidelity bond and insurance policy and a statement from the
surety and the insurer that such fidelity bond and insurance policy shall in
no event be terminated or materially modified without 30 days' prior written
notice to the Purchaser.
Section 4.14. Inspections.
If any Mortgage Loan is more than 75 days delinquent, the Company or its
agent immediately shall inspect the Mortgaged Property and shall conduct
subsequent inspections in accordance with Accepted Servicing Practices or as
may be required by the primary mortgage guaranty insurer. The Company shall
keep a written report of each such inspection.
Section 4.15. Restoration of Mortgaged Property.
The Company need not obtain the approval of the Purchaser prior to
releasing any Insurance Proceeds or Condemnation Proceeds to the Mortgagor to
be applied to the restoration or repair of the Mortgaged Property if such
release is in accordance with Accepted Servicing Practices. For claims greater
than $15,000, at a minimum the Company shall comply with the
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following conditions in connection with any such release of Insurance Proceeds
or Condemnation Proceeds:
(i) The Company shall receive satisfactory independent
verification of completion of repairs and issuance of any required
approvals with respect thereto;
(ii) the Company shall take all steps necessary to preserve the
priority of the lien of the Mortgage, including, but not limited to
requiring waivers with respect to mechanics' and materialmen's liens;
(iii) the Company shall verify that the Mortgage Loan is not in
default; and
(iv) pending repairs or restoration, the Company shall place the
Insurance Proceeds or Condemnation Proceeds in the Escrow Account.
If the Purchaser is named as an additional loss payee, the Company is
hereby empowered to endorse any loss draft issued in respect of such a claim
in the name of the Purchaser. Section 4.16. Claims.
In connection with its activities as servicer, the Company agrees to
prepare and present, on behalf of itself and the Purchaser, claims to the
insurer in a timely fashion and, in this regard, to take such action as shall
be necessary to permit recovery respecting a defaulted Mortgage Loan. Pursuant
to Section 4.4, any amounts collected by the Company under any guaranty shall
be deposited in the Custodial Account, subject to withdrawal pursuant to
Section 4.5.
Section 4.17. Title, Management and Disposition of REO Property.
In the event that title to any Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale
shall be taken in the name of the Company, or in the event the Company is not
authorized or permitted to hold title to real property in the state where the
REO Property is located, or would be adversely affected under the "doing
business" or tax laws of such state by so holding title, or the perfection of
the ownership or security interest of the Purchaser in such REO Property would
be adversely effected, the deed or certificate of sale shall be taken in the
name of such Person or Persons as shall be consistent with an Opinion of
Counsel obtained by the Company from any attorney duly licensed to practice
law in the state where the REO Property is located. The Person or Persons
holding such title other than the Purchaser shall acknowledge in writing that
such title is being held as nominee for the Purchaser.
The Company shall manage, conserve, protect and operate each REO
Property for the Purchaser solely for the purpose of its prompt disposition
and sale. The Company, either itself or through an agent selected by the
Company, shall manage, conserve, protect and operate the REO Property in the
same manner that it manages, conserves, protects and operates other foreclosed
property for its own account, and in the same manner that similar property in
the same
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locality as the REO Property is managed. The Company shall attempt to sell the
same (and may temporarily rent the same for a period not greater than one
year, except as otherwise provided below) on such terms and conditions as the
Company deems to be in the best interest of the Purchaser.
The Company shall use its best efforts to dispose of the REO Property as
soon as possible and shall sell such REO Property in any event within one year
after title has been taken to such REO Property, unless (i) a REMIC election
has not been made with respect to the arrangement under which the Mortgage
Loans and the REO Property are held, and (ii) the Company determines, and
gives an appropriate notice to the Purchaser to such effect, that a longer
period is necessary for the orderly liquidation of such REO Property; provided
however, that the Company agrees not to sell or dispose of any such Mortgage
Loan to a person who acquires such Mortgage Loan using a purchase money
mortgage. If a period longer than one year is permitted under the foregoing
sentence and is necessary to sell any REO Property, the Company shall report
monthly to the Purchaser as to the progress being made in selling such REO
Property.
The Company shall also maintain on each REO Property fire and hazard
insurance with extended coverage in an amount which is at least equal to the
maximum insurable value of the improvements which are a part of such property,
liability insurance and, to the extent required and available under the Flood
Disaster Protection Act of 1973, as amended, flood insurance in the amount
required above.
The disposition of REO Property shall be carried out by the Company at
such price, and upon such terms and conditions, as the Company deems to be in
the best interests of the Purchaser. The proceeds of sale of the REO Property
shall be promptly deposited in the Custodial Account. As soon as practical
thereafter the expenses of such sale shall be paid and the Company shall
reimburse itself for any related unreimbursed Servicing Advances, unpaid
Servicing Fees and unreimbursed advances made pursuant to Section 5.3. On the
Remittance Date immediately following the Principal Prepayment Period in which
such sale proceeds are received the net cash proceeds of such sale remaining
in the Custodial Account shall be distributed to the Purchaser.
The Company shall withdraw the Custodial Account funds necessary for the
proper operation management and maintenance of the REO Property, including the
cost of maintaining any hazard insurance pursuant to Section 4.10 and the fees
of any managing agent of the Company, or the Company itself. The Company shall
make monthly distributions on each Remittance Date to the Purchaser of the net
cash flow from the REO Property (which shall equal the revenues from such REO
Property net of the expenses described in the Section 4.16 and of any reserves
reasonably required from time to time to be maintained to satisfy anticipated
liabilities for such expenses).
Section 4.18. Real Estate Owned Reports.
Together with the statement furnished pursuant to Section 5.2, the
Company shall furnish to the Purchaser on or before the Remittance Date each
month a statement with respect to any REO Property covering the operation of
such REO Property for the previous month and the
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Company's efforts in connection with the sale of such REO Property and any
rental of such REO Property incidental to the sale thereof for the previous
month. That statement shall be accompanied by such other information as the
Purchaser shall reasonably request.
Section 4.19. Liquidation Reports.
Upon the foreclosure sale of any Mortgaged Property or the acquisition
thereof by the Purchaser pursuant to a deed in lieu of foreclosure, the
Company shall submit to the Purchaser a liquidation report with respect to
such Mortgaged Property.
Section 4.20. Reports and Returns to be Filed.
The Company shall file information reports with respect to the receipt
of mortgage interest received in a trade or business, reports of foreclosures
and abandonments of any Mortgaged Property and information returns relating to
cancellation of indebtedness income with respect to any Mortgaged Property as
required by Sections 6050H, 6050J and 6050P of the Code. Such reports shall be
in form and substance sufficient to meet the reporting requirements imposed by
such Sections 6050H, 6050J and 6050P of the Code. Section 4.21. Fair Credit
Reporting Act.
For each Mortgage Loan, the Servicer shall furnish, in accordance with
the Fair Credit Reporting Act and its implementing regulations, accurate and
complete information (e.g., favorable and unfavorable) on its borrower credit
files, to Equifax, Experian, and Trans Union Credit Information Company, or
their successors, on a monthly basis. The Servicer shall provide evidence of
such monthly reporting to Purchaser upon request.
Section 4.22. Disaster Recovery/Business Continuity Plan.
The Company shall establish and maintain contingency plans, recovery
plans and proper risk controls to ensure Company's continued performance under
this Agreement. The plans shall include, but not be limited to, testing,
control functions, accountability and corrective actions to be immediately
implemented, if necessary. The Company agrees to make copies or summaries of
the plans available to the Purchaser's regulators upon request.
Section 4.23. MERS.
In the case of each MERS Mortgage Loan, the Company shall, as soon as
practicable after the Purchaser's request (but in no event more than 30 days
thereafter with respect to each Mortgage Loan that was a MERS Mortgage Loan as
of the applicable Closing Date, or 90 days thereafter with respect to each
Mortgage Loan that was a MERS Eligible Mortgage Loan as of the applicable
Closing Date and subsequent to the applicable Closing Date becomes a MERS
Mortgage Loan), the Company shall take such actions as are necessary to cause
the Purchaser to be clearly identified as the owner of each MERS Mortgage Loan
on the records of MERS for purposes of the system of recording transfers of
beneficial ownership of mortgages maintained by MERS. Each of the Purchaser
and the Company shall maintain in good standing its membership in MERS. In
addition, each of the Purchaser and the Company shall comply with all rules,
policies and procedures of MERS, including the rules of
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membership, as amended, and the MERS procedures manual, as amended. With
respect to all MERS Mortgage Loans serviced hereunder, the Company shall
promptly notify MERS as to any transfer of beneficial ownership or release of
any security interest in such Mortgage Loans. The Company shall cooperate with
the Purchaser and any successor owner or successor servicer to the extent
necessary to ensure that any transfer of ownership or servicing is
appropriately reflected on the MERS system.
ARTICLE V
PAYMENTS TO PURCHASER
Section 5.1. Remittances.
On each Remittance Date the Company shall remit by wire transfer of
immediately available funds to the Purchaser (a) all amounts deposited in the
Custodial Account as of the close of business on the Determination Date (net
of charges against or withdrawals from the Custodial Account pursuant to
Section 4.5), plus (b) all amounts, if any, which the Company is obligated to
distribute pursuant to Section 5.3, minus (c) any amounts attributable to
Principal Prepayments received after the applicable Principal Prepayment
Period which amounts shall be remitted on the following Remittance Date,
together with any additional interest required to be deposited in the
Custodial Account in connection with such Principal Prepayment in accordance
with Section 4.4(viii); and minus (d) any amounts attributable to Monthly
Payments collected but due on a Due Date or Dates subsequent to the first day
of the month of the Remittance Date.
With respect to any remittance received by the Purchaser after the date
on which such payment was due, the Company shall pay to the Purchaser interest
on any such late payment at an annual rate equal to the Prime Rate, adjusted
as of the date of each charge, plus two percentage points, but in no event
greater than the maximum amount permitted by Applicable Law. Such interest
shall be deposited in the Custodial Account by the Company on the date such
late payment is made and shall cover the period commencing with the day
following such second Business Day and ending with the Business Day on which
such payment is made, both inclusive. Such interest shall be remitted along
with the distribution payable on the next succeeding Remittance Date. The
payment by the Company of any such interest shall not be deemed an extension
of time for payment or a waiver of any Event of Default by the Company.
Section 5.2. Statements to Purchaser.
Not later than the Remittance Advice Date, the Company shall furnish to
the Purchaser a Monthly Remittance Advice, including the information set forth
in Exhibit E attached hereto, with a trial balance report attached thereto, as
to the period ending on the last day of the preceding month, in a form to be
agreed upon by the Purchaser and the Company.
Section 5.3. Monthly Advances by Company.
On the Business Day immediately preceding each Remittance Date, the
Company shall deposit in the Custodial Account from its own funds or from
amounts held for future distribution an amount equal to all Monthly Payments
(with interest adjusted to the Mortgage
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Loan Remittance Rate) which were due on the Mortgage Loans during the
applicable Due Period and which were delinquent at the close of business on
the Determination Date immediately preceding such Remittance Date or which
were deferred pursuant to Section 4.1. Any amounts held for future
distribution and so used shall be replaced by the Company by deposit in the
Custodial Account on or before any future Remittance Date if funds in the
Custodial Account on such Remittance Date shall be less than payments to the
Purchaser required to be made on such Remittance Date. The Company shall have
the right to deduct delinquent payments from amounts held for future
distribution as long as the Company, its parent, or their respective
successors hereunder has a long-term credit rating of at least "A" by Fitch,
Inc. (doing business as Fitch Ratings), "A" by Standard & Poor's Ratings
Group, a division of The XxXxxx-Xxxx Companies, Inc., and "A2" by Xxxxx'x
Investors Service, Inc. If the long-term credit rating of the Company, its
parent, or their respective successors hereunder are at any time below the
ratings set forth in the directly preceding sentence, the Company shall no
longer be permitted to make any advances from amounts held for future
distribution, and instead shall be required to make all advances from its own
funds. The Company's obligation to make such Monthly Advances as to any
Mortgage Loan will continue through the last Monthly Payment due prior to the
payment in full of the Mortgage Loan, or through the earlier of: (i) the last
Remittance Date prior to the Remittance Date for the distribution of all
Liquidation Proceeds and other payments or recoveries (including Insurance
Proceeds and Condemnation Proceeds) with respect to the Mortgage Loan and (ii)
the Remittance Date prior to the date the Mortgage Loan is converted to REO
Property, provided, however, that if requested by a Rating Agency in
connection with a Securitization Transaction, the Company shall be obligated
to make such advances through the Remittance Date prior to the date on which
cash is received in connection with the liquidation of REO Property; provided,
however, that such obligation shall cease if the Company determines, in its
sole reasonable opinion, that advances with respect to such Mortgage Loan are
non-recoverable by the Company from Liquidation Proceeds, Insurance Proceeds,
Condemnation Proceeds, or otherwise with respect to a particular Mortgage
Loan. In the event that the Company determines that any such advances are
non-recoverable, the Company shall provide the Purchaser with a certificate
signed by two officers of the Company evidencing such determination.
ARTICLE VI
GENERAL SERVICING PROCEDURES
Section 6.1. Transfers of Mortgaged Property.
The Company shall use its best efforts to enforce any "due-on-sale"
provision contained in any Mortgage or Mortgage Note and to deny assumption by
the person to whom the Mortgaged Property has been or is about to be sold
whether by absolute conveyance or by contract of sale, and whether or not the
Mortgagor remains liable on the Mortgage and the Mortgage Note. When the
Mortgaged Property has been conveyed by the Mortgagor, the Company shall, to
the extent it has knowledge of such conveyance, exercise its rights to
accelerate the maturity of such Mortgage Loan under the "due-on-sale" clause
applicable thereto, provided, however, that the Company shall not exercise
such rights if prohibited by law from doing so.
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If the Company reasonably believes it is unable under Applicable Law to
enforce such "due-on-sale" clause, the Company shall enter into (i) an
assumption and modification agreement with the person to whom such property
has been conveyed, pursuant to which such person becomes liable under the
Mortgage Note and the original Mortgagor remains liable thereon or (ii) in the
event the Company is unable under Applicable Law to require that the original
Mortgagor remain liable under the Mortgage Note and the Company has the prior
consent of the primary mortgage guaranty insurer, a substitution of liability
agreement with the purchaser of the Mortgaged Property pursuant to which the
original Mortgagor is released from liability and the purchaser of the
Mortgaged Property is substituted as Mortgagor and becomes liable under the
Mortgage Note. The Company shall notify the Purchaser that any such
substitution of liability or assumption agreement has been completed by
forwarding to the Purchaser the original of any such substitution of liability
or assumption agreement, which document shall be added to the related Mortgage
File and shall, for all purposes, be considered a part of such Mortgage File
to the same extent as all other documents and instruments constituting a part
thereof. If an assumption fee is collected by the Company for entering into an
assumption agreement the fee will be retained by the Company as additional
servicing compensation. In connection with any such assumption, neither the
Mortgage Interest Rate borne by the related Mortgage Note, the term of the
Mortgage Loan, the outstanding principal amount of the Mortgage Loan nor any
other material terms shall be changed without Purchaser's consent.
To the extent that any Mortgage Loan is assumable, the Company shall
inquire diligently into the credit worthiness of the proposed transferee, and
shall use the underwriting criteria for approving the credit of the proposed
transferee which are used with respect to underwriting mortgage loans of the
same type as the Mortgage Loans. If the credit of the proposed transferee does
not meet such underwriting criteria, the Company diligently shall, to the
extent permitted by the Mortgage or the Mortgage Note and by Applicable Law,
accelerate the maturity of the Mortgage Loan.
Section 6.2. Satisfaction of Mortgages and Release of Mortgage Files.
Upon the payment in full of any Mortgage Loan, the Company shall notify
the Purchaser in the Monthly Remittance Advice as provided in Section 5.2, and
may request the release of any Mortgage Loan Documents.
If the Company satisfies or releases a Mortgage without first having
obtained payment in full of the indebtedness secured by the Mortgage or should
the Company otherwise prejudice any rights the Purchaser may have under the
mortgage instruments, upon written demand of the Purchaser, the Company shall
repurchase the related Mortgage Loan at the Repurchase Price by deposit
thereof in the Custodial Account within 2 Business Days of receipt of such
demand by the Purchaser. The Company shall maintain the Fidelity Bond and
Errors and Omissions Insurance Policy as provided for in Section 4.12 insuring
the Company against any loss it may sustain with respect to any Mortgage Loan
not satisfied in accordance with the procedures set forth herein.
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Section 6.3. Servicing Compensation.
As compensation for its services hereunder, the Company shall be
entitled to withdraw from the Custodial Account or to retain from interest
payments on the Mortgage Loans the amount of its Servicing Fee. The Servicing
Fee shall be payable monthly and shall be computed on the basis of the same
unpaid scheduled principal balance and for the period respecting which any
related interest payment on a Mortgage Loan is computed. The obligation of the
Purchaser to pay the Servicing Fee is limited to, and payable solely from, the
interest portion of such Monthly Payments.
Additional servicing compensation in the form of assumption fees, to the
extent provided in Section 6.1, and late payment charges shall be retained by
the Company to the extent not required to be deposited in the Custodial
Account. The Company shall be required to pay all expenses incurred by it in
connection with its servicing activities hereunder and shall not be entitled
to reimbursement thereof except as specifically provided for herein.
Section 6.4. Annual Statement as to Compliance.
The Company shall deliver to the Purchaser on or before March 15 each
year, beginning March 15, 2005, an Officer's Certificate, stating that (i) a
review of the activities of the Company during the preceding calendar year and
of performance under this Agreement has been made under such officer's
supervision, and (ii) the Company has complied with the provisions of this
Agreement or similar agreements, and (iii) to the best of such officer's
knowledge, based on such review, the Company has fulfilled all its obligations
under this Agreement or similar agreements throughout such year, or, if there
has been a default in the fulfillment of any such obligation, specifying each
such default known to such officer and the nature and status thereof and the
action being taken by the Company to cure such default; provided that the
Company shall not be required to deliver the foregoing if and to the extent
that the Company delivers the servicer compliance statement as required by and
in accordance with Section 13.4 hereof.
Section 6.5. Annual Independent Public Accountants' Servicing Report.
On or before March 15 of each year beginning March 15, 2005, the
Company, at its expense, shall cause a firm of independent public accountants
which is a member of the American Institute of Certified Public Accountants to
furnish a statement to each Purchaser to the effect that such firm has
examined certain documents and records relating to the servicing of the
mortgage loans similar in nature and that such firm is of the opinion that the
provisions of this or similar agreements have been complied with, and that, on
the basis of such examination conducted substantially in compliance with the
Uniform Single Attestation Program for Mortgage Bankers, nothing has come to
their attention which would indicate that such servicing has not been
conducted in compliance therewith, except for (i) such exceptions as such firm
shall believe to be immaterial, and (ii) such other exceptions as shall be set
forth in such statement. By providing Purchaser a copy of a Uniform Single
Attestation Program Report from their independent public accountant's on an
annual basis, the Company shall be considered to have fulfilled its
obligations under this Section 6.5; provided that the Company shall not be
required to
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deliver the foregoing if and to the extent that the Company delivers the
assessment report as required by and in accordance with Section 13.5 hereof.
Section 6.6. Right to Examine Company Records.
The Purchaser, or its designee, shall have the right to examine and
audit any and all of the books, records, or other information of the Company,
whether held by the Company or by another on its behalf, with respect to or
concerning this Agreement or the Mortgage Loans, during business hours or at
such other times as may be reasonable under applicable circumstances, upon
reasonable advance notice. The Purchaser shall pay its own travel expenses
associated with such examination. Section 6.7. Compliance with REMIC
Provisions.
If a REMIC election has been made with respect to the arrangement under
which the Mortgage Loans and REO Property are held, the Company shall not take
any action, cause the REMIC to take any action or fail to take (or fail to
cause to be taken) any action that, under the REMIC Provisions, if taken or
not taken, as the case may be, could (i) endanger the status of the REMIC as a
REMIC or (ii) result in the imposition of a tax upon the REMIC (including but
not limited to the tax on "prohibited transactions" as defined Section
860G(a)(2) of the Code and the tax on "contributions" to a REMIC set forth in
Section 860(D) of the Code) unless the Company has received an Opinion of
Counsel (at the expense of the party seeking to take such action) to the
effect that the contemplated action will not endanger such REMIC status or
result in the imposition of any such tax.
ARTICLE VII
COMPANY TO COOPERATE
Section 7.1. Provision of Information.
During the term of this Agreement, the Company shall furnish to the
Purchaser such periodic, special, or other reports or information, and copies
or originals of any documents contained in the Servicing File for each
Mortgage Loan provided for herein. All other special reports or information
not provided for herein as shall be necessary, reasonable, or appropriate with
respect to the Purchaser or any regulatory agency will be provided at the
Purchaser's expense. All such reports, documents or information shall be
provided by and in accordance with all reasonable instructions and directions
which the Purchaser may give.
The Company shall execute and deliver all such instruments and take all
such action as the Purchaser may reasonably request from time to time, in
order to effectuate the purposes and to carry out the terms of this Agreement.
Section 7.2. Financial Statements; Servicing Facility.
In connection with marketing the Mortgage Loans, the Purchaser may make
available to a prospective Purchaser a Consolidated Statement of Operations of
the Company for the most recently completed two fiscal years for which such a
statement is available, as well as a
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Consolidated Statement of Condition at the end of the last two fiscal years
covered by such Consolidated Statement of Operations. The Company also shall
make available any comparable interim statements to the extent any such
statements have been prepared by or on behalf of the Company (and are
available upon request to members or stockholders of the Company or to the
public at large).
The Company also shall make available to the Purchaser or prospective
Purchaser, within a reasonable period after request, a knowledgeable financial
or accounting officer for the purpose of answering questions respecting recent
developments affecting the Company or the financial statements of the Company,
and to permit any prospective Purchaser to inspect the Company's servicing
facilities for the purpose of satisfying such prospective Purchaser that the
Company has the ability to service the Mortgage Loans as provided in this
Agreement.
Section 7.3. Cooperation with Third-party Service Providers.
The Company shall cooperate with the Purchaser in servicing the Mortgage
Loans in accordance with the usual and customary requirements of any credit
enhancement, risk management and other service providers and shall otherwise
cooperate with the Purchaser in connection with such third-party service
providers and the provision of third-party services; provided, however, that
such requirements are reasonably acceptable to the Company and pose no greater
risk, obligation or expense to the Company than otherwise set forth in this
Agreement. Any additional costs and/or expenses will be paid by the requesting
party.
ARTICLE VIII
THE COMPANY
Section 8.1. Indemnification; Third Party Claims.
The Company shall indemnify the Purchaser and hold it harmless against
any and all claims, losses, damages, penalties, fines, forfeitures, reasonable
and necessary legal fees actually incurred and related costs, judgments, and
any other costs, fees and expenses that the Purchaser may sustain in any way
related to the failure of the Company to perform its duties and service the
Mortgage Loans in strict compliance with the terms of this Agreement. The
Company immediately shall notify the Purchaser if a claim is made by a third
party with respect to this Agreement or the Mortgage Loans, assume (with the
prior written consent of the Purchaser) the defense of any such claim and pay
all expenses in connection therewith, including reasonable counsel fees, and
promptly pay, discharge and satisfy any judgment or decree which may be
entered against it or the Purchaser in respect of such claim. The Company
shall follow any written instructions received from the Purchaser in
connection with such claim. The Purchaser promptly shall reimburse the Company
for all costs, fees or expenses advanced by it pursuant to this paragraph
except when the claim in any way results from, relates to or arises out of any
liability, obligation, act or omission of the Company, including without
limitation, the Company's indemnification obligation under Section 3.3 and
this Section 8.1, any repurchase obligation of the Company hereunder including
Sections 2.3, 3.3 and 6.2, or the failure of the Company to service and
administer the Mortgage Loans and otherwise perform its obligations hereunder
in strict compliance with the terms of this Agreement.
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Section 8.2. Merger or Consolidation of the Company.
Except in the event of a merger or consolidation as set forth in the
second paragraph of this Section 8.2, the Company shall keep in full effect
its existence, rights and franchises as a corporation, and shall obtain and
preserve its qualification to do business as a foreign corporation in each
jurisdiction in which such qualification is or shall be necessary to protect
the validity and enforceability of this Agreement or any of the Mortgage Loans
and to perform its duties under this Agreement.
Any Person into which the Company may be merged or consolidated, or any
corporation resulting from any merger, conversion or consolidation (including
by means of the sale of all or substantially all of the Company's assets to
such Person) to which the Company shall be a party, or any Person succeeding
to the business of the Company (whether or not related to loan servicing),
shall be the successor of the Company hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding; provided, however,
that the Company shall not, without the prior written approval of the
Purchaser, be a party to any such merger, conversion or consolidation, or sell
or otherwise dispose of all or substantially all of its business or assets if,
(i) as a result of such merger, conversion or consolidation, sale or other
disposition, an Event of Default under Section 10.01 hereof would exist with
respect to such successor Company or (ii) such successor has (a) a residential
primary servicer rating for servicing of mortgage loans issued by Standard &
Poor's Rating Services, a division of The XxXxxx-Xxxx Companies, Inc., Fitch,
Inc. or Xxxxx'x Investors Service, Inc. below "average" or its equivalent or
(b) a net worth of less than $25,000,000.
Section 8.3. Limitation on Liability of Company and Others.
Neither the Company nor any of the directors, officers, employees or
agents of the Company shall be under any liability to the Purchaser for any
action taken or for refraining from the taking of any action in good faith
pursuant to this Agreement, or for errors in judgment, provided, however, that
this provision shall not protect the Company or any such person against any
breach of warranties or representations made herein, or failure to perform its
obligations in strict compliance with any standard of care set forth in this
Agreement or any other liability which would otherwise be imposed under this
Agreement. The Company and any director, officer, employee or agent of the
Company may rely in good faith on any document of any kind prima facie
properly executed and submitted by any Person respecting any matters arising
hereunder. The Company shall not be under any obligation to appear in,
prosecute or defend any legal action which is not incidental to its duties to
service the Mortgage Loans in accordance with this Agreement and which in its
opinion may involve it in any expense or liability, provided, however, that
the Company may, with the consent of the Purchaser, undertake any such action
which it may deem necessary or desirable in respect to this Agreement and the
rights and duties of the parties hereto. In such event, the Company shall be
entitled to reimbursement from the Purchaser of the reasonable legal expenses
and costs of such action, unless any such costs result from a breach of the
Company's representations and warranties made herein or its failure to perform
its obligations in compliance with this Agreement.
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Section 8.4. Limitation on Resignation and Assignment by Company.
The Purchaser has entered into this Agreement with the Company and
subsequent Purchasers will purchase the Mortgage Loans in reliance upon the
independent status of the Company, and the representations as to the adequacy
of its servicing facilities, plant, personnel, records and procedures, its
integrity, reputation and financial standing, and the continuance thereof.
Therefore, the Company shall neither assign this Agreement or the servicing
hereunder, nor delegate its rights or duties hereunder or any portion hereof,
nor sell or otherwise dispose of all of its property or assets without the
prior written consent of the Purchaser, which consent shall not be
unreasonably withheld.
The Company shall not resign from the obligations and duties hereby
imposed on it except by mutual consent of the Company and the Purchaser or
upon the determination that its duties hereunder are no longer permissible
under Applicable Law and such incapacity cannot be cured by the Company. Any
such determination permitting the resignation of the Company shall be
evidenced by an Opinion of Counsel to such effect delivered to the Purchaser
which Opinion of Counsel shall be in form and substance acceptable to the
Purchaser. No such resignation shall become effective until a successor shall
have assumed the Company's responsibilities and obligations hereunder in the
manner provided in Section 12.1.
Without in any way limiting the generality of this Section 8.4, in the
event that the Company either shall assign this Agreement or the servicing
responsibilities hereunder or delegate its duties hereunder or any portion
thereof; or sell or otherwise dispose of all or substantially all of its
property or assets without the prior written consent of the Purchaser, then
the Purchaser shall have the right to terminate this Agreement upon notice
given as set forth in Section 10.1, without any payment of any penalty or
damages and without any liability whatsoever to the Company or any third
party.
ARTICLE IX
SECURITIZATION TRANSACTION
Section 9.1. Removal of Mortgage Loans from Inclusion Under this
Agreement Upon a Securitization Transaction. The Purchaser and the Company
agree that with respect to some or all of the Mortgage Loans, the Purchaser,
at its sole option, shall effect up to four Whole Loan Transfers or
Securitization Transactions, retaining the Company as the Servicer thereof or
subservicer if a master servicer is employed, or as applicable the
"seller/servicer". From and after the Reconstitution Date, the Mortgage Loans
transferred shall remain covered by this Agreement, insofar as the Company
shall continue to service such Mortgage Loans on behalf of the Purchaser in
accordance with the terms and provisions of this Agreement.
The Company shall cooperate with the Purchaser in connection with each
Whole Loan Transfer or Securitization Transaction in accordance with this
Section 9.1. In connection therewith the Company shall:
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(a) make all representations and warranties with respect to the Mortgage
Loans as of the related Closing Date and with respect to the Company itself as
of the closing date of each Whole Loan Transfer or Securitization Transaction;
(b) negotiate in good faith and execute any seller/servicer agreements
required by the shelf registrant to effectuate the foregoing provided such
agreements create no greater obligation or cost on the part of the Company
than otherwise set forth in this Agreement;
(c) cooperate with the Purchaser, the depositor and the trustee to
satisfy, in connection with any Securitization Transaction, the applicable
trust's reporting obligations under the Exchange Act and Applicable Law;
(d) represent to the Purchaser, the depositor, the trustee, and the
initial purchaser of the securities issued in connection with any
Securitization Transaction that: (1) that the Company has serviced the
Mortgage Loans in accordance with the terms of this Agreement, and has
otherwise complied with all covenants and obligations hereunder, and (2) that
the Company has taken no action that would, nor omitted to take any required
action the omission of which would, have the effect of impairing the mortgage
insurance or guarantee on the Mortgage Loans. The Company also agrees to
represent the accuracy of any information provided to the Purchaser by the
Company for inclusion in any prospectus supplement, offering memorandum or
term sheet prepare in connection with any Securitization Transactions;
(e) deliver an opinion of counsel (which can be an opinion of in-house
counsel to the Company) reasonably acceptable to the Purchaser; provided that
any out-of-pocket, third party expenses incurred by the Company in connection
with the foregoing shall be paid by the Purchaser;
(f) provide as applicable:
(i) any and all information and appropriate verification of
information which may be reasonably available to the Company, whether
through letters of its auditors and counsel or otherwise, as the
Purchaser shall request;
(ii) (x) the Annual Certification executed by a senior officer of
the Company responsible for the servicing of the Mortgage Loans; and (y)
such additional statements, certificates or other similar documents of
the Company or reports from the Company's accountants in connection with
a Securitization Transaction and in substance as required by Applicable
Law; and
(iii) such additional representations, warranties, covenants,
opinions of counsel, letters from auditors, financial description of the
Company as servicer for inclusion in any offering memorandum to be
distributed to potential investors in connection with a Securitization
Transaction with respect to the Mortgage Loans, and certificates of
public officials or officers of the Company as are reasonably believed
necessary by the trustee, any Rating Agency, the Purchaser, as the case
may be, in connection with such Whole Loan Transfers or Securitization
Transactions. The Purchaser shall pay all third party costs associated
with the preparation of such information. The Company shall execute any
seller/servicer
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agreements required within a reasonable period of time after receipt of
such seller/servicer agreements which time shall be sufficient for the
Company and Company's counsel to review such seller/servicer agreements.
Under this Agreement, the Company shall retain a servicing fee at a rate
per annum equal to no less than 0.25% per Mortgage Loan; and
(g) indemnify the Purchaser for any material misstatements contained in
the information provided pursuant to (d) or (f) above.
In the event the Purchaser has elected to have the Company hold record
title to the Mortgages, prior to the Reconstitution Date and after the related
Closing Date the Company shall prepare an Assignment in blank or, at the
option of the Purchaser, to the trustee from the Company (to the extent such
Assignment has not been prepared on or before such Closing Date) acceptable to
the trustee for each Mortgage Loan that is part of the Whole Loan Transfers or
Securitization Transactions. The Purchaser shall pay all preparation and
recording costs associated therewith. The Company shall execute each
Assignment, track such Assignments to ensure they have been recorded and
deliver them as required by the trustee upon the Company's receipt thereof.
Additionally, the Company shall prepare and execute, at the direction of the
Purchaser, any note endorsements in connection with any and all
seller/servicer agreements.
ARTICLE X
DEFAULT
Section 10.1. Events of Default.
Each of the following shall constitute an Event of Default on the part
of the Company:
(i) any failure by the Company to remit to the Purchaser any
payment required to be made under the terms of this Agreement which
continues unremedied for a period of three Business Days after the date
upon which written notice of such failure, requiring the same to be
remedied, shall have been given to the Company by the Purchaser; or
(ii) failure by the Company duly to observe or perform in any
material respect any other of the covenants or agreements on the part of
the Company set forth in this Agreement which continues unremedied for a
period of 30 days after the date on which written notice of such
failure, requiring the same to be remedied, shall have been given to the
Company by the Purchaser or by the Custodian; or
(iii) failure by the Company to maintain its license to do
business in any jurisdiction where the Mortgaged Property is located if
such license is required; or
(iv) a decree or order of a court or agency or supervisory
authority having jurisdiction for the appointment of a conservator or
receiver or liquidator in any insolvency, readjustment of debt,
including bankruptcy, marshaling of assets
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and liabilities or similar proceedings, or for the winding-up or
liquidation of its affairs, shall have been entered against the Company
and such degree or order shall have remained in force undischarged or
unstayed for a period of 30 days; or
(v) the Company shall consent to the appointment of a conservator
or receiver or liquidator in any insolvency, readjustment of debt,
marshaling of assets and liabilities or similar proceedings of or
relating to the Company or of or relating to all or substantially all of
its property; or
(vi) the Company shall admit in writing its inability to pay its
debts generally as they become due, file a petition to take advantage of
any applicable insolvency, bankruptcy or reorganization statute, make an
assignment for the benefit of its creditors, voluntarily suspend payment
of its obligations or cease its normal business operations for three
Business Days; or
(vii) the Company ceases to meet the qualifications of a
FNMA/Xxxxxxx Mac servicer; or
(viii) the Company attempts to assign its right to servicing
compensation hereunder or to assign this Agreement or the servicing
responsibilities hereunder or to delegate its duties hereunder or any
portion thereof in violation of Section 8.4; or
(ix) the taking of any action by the Company, any Company
Employee, any Affiliate or any director or employee thereof that
constitutes fraud or criminal activity in the performance of its
obligations under this Agreement or the indictment of any of the
foregoing Persons for criminal activity related to the mortgage
origination or servicing activities of the Company, in each case, where
such indictment materially and adversely affects the ability of the
Company to perform its obligations under this Agreement (subject to the
condition that such indictment is not dismissed within 90 days).
In each and every such case, so long as an Event of Default shall not
have been remedied, in addition to whatever rights the Purchaser may have at
law or equity to damages, including injunctive relief and specific
performance, the Purchaser, by notice in writing to the Company, may terminate
with cause all the rights and obligations of the Company under this Agreement
and in and to the Mortgage Loans and the proceeds thereof. If the Company
obtains knowledge of an Event of Default, the Company shall promptly notify
the Purchaser.
Upon receipt by the Company of such written notice, all authority and
power of the Company under this Agreement, whether with respect to the
Mortgage Loans or otherwise, shall pass to and be vested in the successor
appointed pursuant to Section 12.1. Upon written request from any Purchaser,
the Company shall prepare, execute and deliver to the successor entity
designated by the Purchaser any and all documents and other instruments, place
in such successor's possession all Mortgage Files, and do or cause to be done
all other acts or things necessary or appropriate to effect the purposes of
such notice of termination, including but not limited to the transfer and
endorsement or assignment of the Mortgage Loans and related documents, at the
Company's sole expense. The Company shall cooperate with the Purchaser
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and such successor in effecting the termination of the Company's
responsibilities and rights hereunder, including without limitation, the
transfer to such successor for administration by it of all cash amounts which
shall at the time be credited by the Company to the Custodial Account or
Escrow Account or thereafter received with respect to the Mortgage Loans.
If any of the Mortgage Loans are MERS Mortgage Loans, in connection with
the termination or resignation of the Company hereunder, either (i) the
successor servicer shall represent and warrant that it is a member of MERS in
good standing and shall agree to comply in all material respects with the
rules and procedures of MERS in connection with the servicing of the MERS
Mortgage Loans, or (ii) the predecessor servicer shall cooperate with the
successor servicer either (x) in causing MERS to execute and deliver an
assignment of Mortgage in recordable form to transfer the Mortgage from MERS
to the Purchaser and to execute and deliver such other notices, documents and
other instruments as may be necessary to effect a transfer of such Mortgage
Loan or servicing of such Mortgage Loan on the MERS system to the successor
servicer or (y) in causing MERS to designate on the MERS system the successor
servicer as the servicer of such Mortgage Loan.
Section 10.2. Waiver of Defaults.
By a written notice, the Purchaser may waive any default by the Company
in the performance of its obligations hereunder and its consequences. Upon any
waiver of a past default, such default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been remedied for every
purpose of this Agreement. No such waiver shall extend to any subsequent or
other default or impair any right consequent thereon except to the extent
expressly so waived.
Section 10.3 Survival of Certain Obligations and Liabilities of the
Company.
The representations, warranties, covenants, indemnities and agreements
of the parties provided in this Agreement and the parties' obligations
hereunder shall survive the execution and delivery and the termination or
expiration of this Agreement. Notwithstanding any termination of the rights
and obligations of the Company pursuant to the terms of this Agreement, the
Company shall remain liable for any of its actions prior to the effectiveness
of any such termination.
ARTICLE XI
TERMINATION
Section 11.1. Termination.
This Agreement shall terminate upon any of: (i) the later of the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan or the disposition of any REO Property with respect to the last
Mortgage Loan and the remittance of all funds due hereunder, (ii) mutual
consent of the Company and the Purchaser in writing or (iii) termination
pursuant to Section 10.1, 11.2 or 11.3.
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Section 11.2. Termination Without Cause.
The Purchaser may terminate, at its sole option, any rights the Company
may have hereunder, without cause, as provided in this Section 11.2. Any such
notice of termination shall be in writing and delivered to the Company and any
Rating Agency at least 30 days prior to the date of such termination by
registered mail as provided in Section 12.5.
The Company shall be entitled to receive, as such liquidated damages,
upon its termination as servicer hereunder without cause pursuant to this
Section 11.2 an amount equal to 1.5% of the aggregate outstanding principal
amount of the Mortgage Loans as of the termination date paid by the Purchaser
to the Company with respect to all of the Mortgage Loans.
Section 11.3. Termination With Cause.
Notwithstanding any other provision hereof to the contrary, the
Purchaser, at its option, may terminate this Agreement, and any rights the
Company may have hereunder, with material cause upon ten (10) Business Days'
prior written notice. For all purposes of determining "material cause" with
respect to termination of this Agreement or the rights of the Company
hereunder, such term shall mean, without limitation, termination upon the
occurrence of any Event of Default hereunder which is not cured within any
applicable cure period. In the event of a termination of the Company for cause
under this Section 11.3, no liquidated damages shall be payable to the Company
pursuant to Section 11.2.
ARTICLE XII
MISCELLANEOUS PROVISIONS
Section 12.1. Successor to Company.
Prior to termination of the Company's responsibilities and duties under
this Agreement pursuant to Sections 8.4, 10.1 or 11.1, the Purchaser shall,
(i) succeed to and assume all of the Company's responsibilities, rights,
duties and obligations under this Agreement, or (ii) appoint a successor
having the characteristics set forth in Section 8.2 and which shall succeed to
all rights and assume all of the responsibilities, duties and liabilities of
the Company under this Agreement prior to the termination of Company's
responsibilities, duties and liabilities under this Agreement. In connection
with such appointment and assumption, the Purchaser may make such arrangements
for the compensation of such successor out of payments on Mortgage Loans as it
and such successor shall agree. In the event that the Company's duties,
responsibilities and liabilities under this Agreement should be terminated
pursuant to the aforementioned sections, the Company shall discharge such
duties and responsibilities during the period from the date it acquires
knowledge of such termination until the effective date thereof with the same
degree of diligence and prudence which it is obligated to exercise under this
Agreement, and shall take no action whatsoever that might impair or prejudice
the rights or financial condition of its successor. The resignation or removal
of the Company pursuant to the aforementioned sections shall not become
effective until a successor shall be appointed pursuant to this Section 12.1
and shall in no event relieve the Company of the representations and
warranties made pursuant to Sections 3.1 and 3.2 and the remedies available to
the Purchaser under Sections 2.3, 3.3 and 6.2, it being understood and agreed
that the provisions of such Sections 2.3, 3.1, 3.2, 3.3 and 6.1 shall be
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applicable to the Company notwithstanding any such sale, assignment,
resignation or termination of the Company, or the termination of this
Agreement.
Any successor appointed as provided herein shall execute, acknowledge
and deliver to the Company and to the Purchaser an instrument accepting such
appointment, wherein the successor shall make the representations and
warranties set forth in Section 3.1, except for the portion of subsection (h)
relating to sale of the mortgage loans and all of subsections (j) and (l)
thereof, whereupon such successor shall become fully vested with all the
rights, powers, duties, responsibilities, obligations and liabilities of the
Company, with like effect as if originally named as a party to this Agreement.
Any termination or resignation of the Company or termination of this Agreement
pursuant to Section 8.4, 10.1, 11.1, 11.2 or 11.3 shall not affect any claims
that any Purchaser may have against the Company arising out of the Company's
actions or failure to act prior to any such termination or resignation.
The Company shall deliver promptly to the successor servicer the funds
in the Custodial Account and Escrow Account and all Mortgage Files and related
documents and statements held by it hereunder and the Company shall account
for all funds and shall execute and deliver such instruments and do such other
things as may reasonably be required to more fully and definitively vest in
the successor all such rights, powers, duties, responsibilities, obligations
and liabilities of the Company.
Unless the Company is terminated pursuant to Section 11.2, the Purchaser
shall be entitled to be reimbursed from the Company for all costs associated
with the transfer of servicing, including, without limitation, any costs or
expenses associated with the complete transfer of all servicing data and the
completion, correction or manipulation of such servicing data as may be
required by the Purchaser to correct any errors or insufficiencies in the
servicing data or otherwise to enable the Purchaser to service the Mortgage
Loans properly and effectively.
Upon a successor's acceptance of appointment as such, the Company shall
notify by mail the Purchaser of such appointment in accordance with the
procedures set forth in Section 12.5. Section 12.2. Amendment.
This Agreement may be amended from time to time by written agreement
signed by the Company and the Purchaser.
Section 12.3. Governing Law.
This Agreement shall be construed in accordance with the laws of the
State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws.
Each of the Company and the Purchaser hereby knowingly, voluntarily and
intentionally waives any and all rights it may have to a trial by jury in
respect or any litigation based on, or arising out of, under, or in connection
with, this Agreement, or any other documents and instruments executed in
connection herewith, or any course of conduct, course of dealing,
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statements (whether oral or written), or actions of the Company or the
Purchaser. This provision is a material inducement for the Purchaser to enter
into this Agreement.
Section 12.4. Duration of Agreement.
This Agreement shall continue in existence and effect until terminated
as herein provided. This Agreement shall continue notwithstanding transfers of
the Mortgage Loans by the Purchaser.
Section 12.5. Notices.
All demands, notices and communications hereunder shall be in writing
and shall be deemed to have been duly given if personally delivered at or
mailed by registered mail, postage prepaid, addressed as follows:
(i) if to the Company:
SunTrust Mortgage, Inc.
000 Xxxxxx Xxxxxx
Xxxxxxxx, XX 00000
Attention: Xxx Xxxxxxx
Telephone (000) 000-0000
Facsimile: (000) 000-0000
or such other address as may hereafter be furnished
to the Purchaser in writing by the Company;
(ii) if to Purchaser:
Xxxxxxx Sachs Mortgage Company
000 Xxxxxx Xxxxxx Xxxxx
Xxxxx 000 Xxxxx
Xx. Xxxxxxxxxx, XX 00000
Attention: Xxxxxxx Xxxx
Tel: (000) 000-0000
Fax: (000) 000-0000
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With a copy to:
Xxxxxxx Sachs Mortgage Company
00 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxx Xxxxxxxxx
Tel: (000) 000-0000
Fax: (000) 000-0000
or such other address as may hereafter be furnished
to the Company in writing by the Purchaser.
Section 12.6. Severability of Provisions.
If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be held invalid for any reason whatsoever, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and
shall in no way affect the validity or enforceability of the other provisions
of this Agreement. Section 12.7. Relationship of Parties.
Nothing herein contained shall be deemed or construed to create a
partnership or joint venture between the parties hereto and the services of
the Company shall be rendered as an independent contractor and not as agent
for the Purchaser.
Section 12.8. Execution; Successors and Assigns.
This Agreement may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together,
shall constitute one and the same agreement. Subject to Section 8.4, this
Agreement shall inure to the benefit of and be binding upon, and shall be
enforceable by, the Company and the Purchaser and their respective successors
and assigns, including without limitation, any trustee appointed by the
Purchaser with respect to any Whole Loan Transfer or Securitization
Transaction.
Section 12.9. Recordation of Assignments of Mortgage.
To the extent permitted by Applicable Law, each of the Assignments of
Mortgage is subject to recordation in all appropriate public offices for real
property records in all the counties or other comparable jurisdictions in
which any or all of the Mortgaged Properties are situated, and in any other
appropriate public recording office or elsewhere, which recordation shall have
been effected at the Company's expense in the event recordation is either
necessary under Applicable Law or requested by the Purchaser at its sole
option.
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Section 12.10. Assignment by Purchaser.
The Purchaser shall have the right, without the consent of the Company
but subject to the limit set forth in Section 2.2 hereof, to assign, in whole
or in part, its interest under this Agreement with respect to some or all of
the Mortgage Loans, and designate any person to exercise any rights of the
Purchaser hereunder, by executing an Assignment and Assumption Agreement
substantially in the form of Exhibit F hereto and the assignee or designee
shall accede to the rights and obligations hereunder of the Purchaser with
respect to such Mortgage Loans. All references to the Purchaser in this
Agreement shall be deemed to include its assignee or designee.
Section 12.11. Solicitation of Mortgagor.
The Purchaser, its affiliates, successors or assigns shall not, without
the prior written consent of the Company, take any action to solicit or make
direct contact with the Mortgagor under any Mortgage Loan except to the extent
required by the Company's breach of this Agreement or as required under
Applicable Law or regulatory authority. Notwithstanding any provision of this
Agreement to the contrary, in the event the Purchaser, its affiliates,
successors or assigns fails to obtain such written consent, the Company shall
be entitled, in its sole discretion, to terminate its obligations and duties
under this Agreement. Upon termination without cause of the servicing rights
and obligations under this Agreement and the transfer of such rights and
obligations to the Purchaser or Purchaser's designee, the Company shall be
entitled to receive damages as provided in Section 11.2.
The Company agrees that, after the Closing Date, it will not take any
action to solicit the refinancing of any Mortgage Loan. It is understood and
agreed that promotions undertaken by the Company or any affiliate of the
Company which are directed to the general public at large, including, without
limitation, mass mailings based upon commercially acquired mailing lists,
newspaper, radio, television advertisements or from servicing the refinancing
needs of a Mortgagor who, without solicitation, contacts Company in connection
with the refinance of such Mortgage or Mortgage Loan, shall not constitute
solicitation under this Section. Notwithstanding anything to the contrary,
this Section shall not prohibit the Company from soliciting any Mortgagor to
provide other services including but not limited to credit cards, insurance
investments and banking related services.
Section 12.12. Confidential Information.
The Company shall keep confidential and shall not divulge to any party,
without the Purchaser's prior written consent, the price paid by the Purchaser
for the Mortgage Loans, except to the extent that it is reasonable and
necessary for the Company to do so in working with legal counsel, auditors,
taxing authorities or other governmental agencies.
The Purchaser and the Company agree they (i) shall comply with all
Applicable Laws regarding the privacy or security of Consumer Information,
(ii) shall not collect, create, use, store, access, disclose or otherwise
handle Consumer Information in any manner inconsistent with any applicable
laws or regulations regarding the privacy or security of Consumer Information,
(iii) shall not disclose Consumer Information to any affiliated or
non-
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affiliated third party except to enforce or preserve its rights, as otherwise
permitted or required by applicable law (or by regulatory authorities having
jurisdiction in the premises) or, in the case of the Company, at the specific
written direction of the Purchaser, (iv) shall maintain appropriate
administrative, technical and physical safeguards to protect the security,
confidentiality and integrity of Consumer Information, including maintaining
security measures designed to meet the Interagency Guidelines Establishing
Standards for Safeguarding Consumer Information published in final form on
February 1, 2001, 66 Fed. Reg. 8616, and the rules promulgated thereunder and
(v) shall promptly notify the other party in writing upon becoming aware of
any actual breach and of any suspected breach of this section. The Company
shall promptly provide the Purchaser's regulators information regarding such
security measures upon the reasonable request of the Purchaser, which
information shall include, but not be limited to, any SAS 70 or similar
independent audit reports, summaries of test results or equivalent measures
taken by the Company with respect to its security measures, as agreed upon by
the parties. Each party shall indemnify and defend the other party against,
and shall hold the other party harmless from, any cost, expense, loss, claim
or other liability that such other party may suffer as a result of or in
connection with its failure to comply with or perform the obligations set
forth in this section. The restrictions set forth herein shall survive the
termination of this Agreement. As used herein, "Consumer Information" shall
mean information including but not limited to all personal information about
the Mortgagors that is supplied to the Company on behalf of the Mortgagors.
ARTICLE XIII
COMPLIANCE WITH REGULATION AB
Section 13.1. Intent of the Parties; Reasonableness.
The Purchaser and the Company acknowledge and agree that the purpose of
Article XIII of this Agreement is to facilitate compliance by the Purchaser
and any Depositor with the provisions of Regulation AB and related rules and
regulations of the Commission. Although Regulation AB is applicable by its
terms only to offerings of asset-backed securities that are registered under
the Securities Act, the Company acknowledges that investors in privately
offered securities may require that the Purchaser or any Depositor provide
comparable disclosure in unregistered offerings. References in this Agreement
to compliance with Regulation AB include provision of comparable disclosure in
private offerings.
Neither the Purchaser nor any Depositor shall exercise its right to
request delivery of information or other performance under these provisions
other than in good faith, or for purposes other than compliance with the
Securities Act, the Exchange Act and the rules and regulations of the
Commission thereunder (or the provision in a private offering of disclosure
comparable to that required under the Securities Act). The Company
acknowledges that interpretations of the requirements of Regulation AB may
change over time, whether due to interpretive guidance provided by the
Commission or its staff, consensus among participants in the asset-backed
securities markets, advice of counsel, or otherwise, and agrees to comply with
requests made by the Purchaser or any Depositor in good faith for delivery of
information under these provisions on the basis of evolving interpretations of
Regulation AB, subject to the limitations provided in Item 1105(f) of
Regulation AB. In connection with any Securitization Transaction, the Company
shall cooperate fully with the Purchaser to deliver to the Purchaser
(including any of its assignees or designees) and any Depositor, any and all
statements, reports,
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certifications, records and any other information necessary in the good faith
determination of the Purchaser or any Depositor to permit the Purchaser or
such Depositor to comply with the provisions of Regulation AB, together with
such disclosures relating to the Company, any Subservicer, any Third-Party
Originator and the Mortgage Loans, or the servicing of the Mortgage Loans,
reasonably believed by the Purchaser or any Depositor to be necessary in order
to effect such compliance, subject to the limitations provided in Item 1105(f)
of Regulation AB.
The Purchaser (including any of its assignees or designees) shall
cooperate with the Company by providing timely notice of requests for
information under these provisions and by reasonably limiting such requests to
information required, in the Purchaser's reasonable judgment, to comply with
Regulation AB.
Section 13.2. Additional Representations and Warranties of the Company.
(a) The Company shall be deemed to represent to the Purchaser and to any
Depositor, as of the date on which information is first provided to the
Purchaser or any Depositor under Section 13.3 that, except as disclosed in
writing to the Purchaser or such Depositor prior to such date: (i) the Company
is not aware and has not received notice that any default, early amortization
or other performance triggering event with respect to the Company has occurred
as to any other securitization due to any act or failure to act of the
Company; (ii) the Company has not been terminated as servicer in a residential
mortgage loan securitization, either due to a servicing default or to
application of a servicing performance test or trigger; (iii) no material
noncompliance with the applicable servicing criteria with respect to other
securitizations of residential mortgage loans involving the Company as
servicer has been disclosed or reported by the Company; (iv) no material
changes to the Company's policies or procedures with respect to the servicing
function it will perform under this Agreement and any Reconstitution Agreement
for mortgage loans of a type similar to the Mortgage Loans have occurred
during the three-year period immediately preceding the related Securitization
Transaction; (v) there are no aspects of the Company's financial condition
that could have a material adverse effect on the performance by the Company of
its servicing obligations under this Agreement or any Reconstitution
Agreement; (vi) there are no material legal or governmental proceedings
pending (or known to be contemplated) against the Company, any Subservicer or
any Third-Party Originator; and (vii) there are no affiliations, relationships
or transactions relating to the Company, any Subservicer or any Third-Party
Originator with respect to any Securitization Transaction and any party
thereto identified by the related Depositor of a type described in Item 1119
of Regulation AB.
(b) If so requested by the Purchaser or any Depositor on any date
following the date on which information is first provided to the Purchaser or
any Depositor under Section 13.3, the Company shall, within five Business Days
following such request, confirm in writing the accuracy of the representations
and warranties set forth in paragraph (a) of this Section or, if any such
representation and warranty is not accurate as of the date of such request,
provide reasonably adequate disclosure of the pertinent facts, in writing, to
the requesting party.
Section 13.3. Information to Be Provided by the Company.
In connection with any Securitization Transaction the Company shall (i)
within five (5) Business Days (or with respect to the information specified by
paragraph (b) below, the
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Company shall use its best efforts to provide such information within five (5)
Business Days, but in no event later than ten (10) Business Days) following
request by the Purchaser or any Depositor, provide to the Purchaser and such
Depositor (or, as applicable, cause each Third-Party Originator and each
Subservicer to provide), in writing and in form and substance reasonably
satisfactory to the Purchaser and such Depositor, the information and
materials specified in paragraphs (a), (b), (c) and (f) of this Section, and
(ii) as promptly as practicable following notice to or discovery by the
Company, provide to the Purchaser and any Depositor (in writing and in form
and substance reasonably satisfactory to the Purchaser and such Depositor) the
information specified in paragraph (d) of this Section.
(a) If so requested by the Purchaser or any Depositor, the Company shall
provide such information regarding (i) the Company, as originator of the
Mortgage Loans (including as an acquirer of Mortgage Loans from a Qualified
Correspondent), or (ii) each Third-Party Originator, and (iii) as applicable,
each Subservicer, as is requested in good faith for the purpose of compliance
with Items 1103(a)(1), 1105, 1110, 1117 and 1119 of Regulation AB. Such
information may include, if applicable:
(A) the originator's form of organization;
(B) a description of the originator's origination program and how
long the originator has been engaged in originating residential mortgage
loans, which description shall include a discussion of the originator's
experience in originating mortgage loans of a similar type as the
Mortgage Loans; information regarding the size and composition of the
originator's origination portfolio; and information that may be
material, in the good faith judgment of the Purchaser or any Depositor,
to an analysis of the performance of the Mortgage Loans, including the
originators' credit-granting or underwriting criteria for mortgage loans
of similar type(s) as the Mortgage Loans and such other information as
the Purchaser or any Depositor may reasonably request for the purpose of
compliance with Item 1110(b)(2) of Regulation AB;
(C) a description of any material legal or governmental
proceedings pending (or known to be contemplated) against the Company,
each Third-Party Originator and each Subservicer; and
(D) a description of any affiliation or relationship between the
Company, each Third-Party Originator, each Subservicer and any of the
following parties to a Securitization Transaction, as such parties are
identified to the Company by the Purchaser or any Depositor in writing
in advance of such Securitization Transaction:
(1) the sponsor;
(2) the depositor;
(3) the issuing entity;
(4) any servicer;
(5) any trustee;
(6) any originator;
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(7) any significant obligor;
(8) any enhancement or support provider; and
(9) any other material transaction party.
(b) If so requested by the Purchaser or any Depositor, the Company shall
provide (or, as applicable, cause each Third-Party Originator to provide)
Static Pool Information with respect to the mortgage loans (of a similar type
as the Mortgage Loans, as reasonably identified by the Purchaser as provided
below) originated by (i) the Company, if the Company is an originator of
Mortgage Loans (including as an acquirer of Mortgage Loans from a Qualified
Correspondent), and/or (ii) each Third-Party Originator; provided that the
information to be provided by the Company shall be in such format as the
Company maintains such data (such data being attached hereto as Exhibit L) or
such other form of report as agreed to by the Company and the Purchaser in
response to market standards for static pool information, and the Company
shall not be obligated to customize such format for use by the Purchaser or
the Depositor. Such Static Pool Information shall be prepared by the Company
(or Third-Party Originator) on the basis of its reasonable, good faith
interpretation of the requirements of Item 1105(a)(1)-(3) of Regulation AB. To
the extent that there is reasonably available to the Company (or Third-Party
Originator) Static Pool Information with respect to more than one mortgage
loan type, the Purchaser or any Depositor shall be entitled to specify whether
some or all of such information shall be provided pursuant to this paragraph.
The content of such Static Pool Information may be in the form customarily
provided by the Company, and need not be customized for the Purchaser or any
Depositor. Such Static Pool Information for each vintage origination year or
prior securitized pool, as applicable, shall be presented in increments no
less frequently than quarterly over the life of the mortgage loans included in
the vintage origination year or prior securitized pool. The most recent
periodic increment must be as of a date no later than 135 days prior to the
date of the prospectus or other offering document in which the Static Pool
Information is to be included or incorporated by reference. The Static Pool
Information shall be provided in an electronic format that provides a
permanent record of the information provided, such as a portable document
format (pdf) file, or other such electronic format reasonably required by the
Purchaser or the Depositor, as applicable.
Promptly following notice or discovery of a material error in Static
Pool Information provided pursuant to the immediately preceding paragraph
(including an omission to include therein information required to be provided
pursuant to such paragraph), the Company shall provide corrected Static Pool
Information to the Purchaser or any Depositor, as applicable, in the same
format in which Static Pool Information was previously provided to such party
by the Company.
If so requested by the Purchaser or any Depositor, the Company shall
provide (or, as applicable, cause each Third-Party Originator to provide), at
the expense of the requesting party (to the extent of any additional
incremental expense associated with delivery pursuant to this Agreement), such
agreed-upon procedures letters of certified public accountants reasonably
acceptable to the Purchaser or Depositor, as applicable, pertaining to Static
Pool Information relating to prior securitized pools for securitizations
closed on or after January 1, 2006 or, in the case of Static Pool Information
with respect to the Company's or Third-Party Originator's originations or
purchases, to calendar months commencing January 1, 2006, as the Purchaser or
such Depositor shall reasonably request. Such letters shall be addressed to
and be for the benefit
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of such parties as the Purchaser or such Depositor shall designate, which may
include, by way of example, any Sponsor, any Depositor and any broker dealer
acting as underwriter, placement agent or initial purchaser with respect to a
Securitization Transaction. Any such statement or letter may take the form of
a standard, generally applicable document accompanied by a reliance letter
authorizing reliance by the addressees designated by the Purchaser or such
Depositor.
(c) If so requested by the Purchaser or any Depositor, the Company shall
provide such information regarding the Company, as servicer of the Mortgage
Loans, and each Subservicer (each of the Company and each Subservicer, for
purposes of this paragraph, a "Servicer"), as is requested in good faith for
the purpose of compliance with Item 1108 of Regulation AB. Such information
may include, if applicable:
(A) the Servicer's form of organization;
(B) a description of how long the Servicer has been servicing
residential mortgage loans; a general discussion of the Servicer's
experience in servicing assets of any type as well as a more detailed
discussion of the Servicer's experience in, and procedures for, the
servicing function it will perform under this Agreement and any
Reconstitution Agreements; information regarding the size, composition
and growth of the Servicer's portfolio of residential mortgage loans of
a type similar to the Mortgage Loans and information on factors related
to the Servicer that may be material, in the good faith judgment of the
Purchaser or any Depositor, to any analysis of the servicing of the
Mortgage Loans or the related asset-backed securities, as applicable,
including, without limitation:
(1) whether any prior securitizations of mortgage loans of a
type similar to the Mortgage Loans involving the Servicer have
defaulted or experienced an early amortization or other
performance triggering event because of servicing during the
three-year period immediately preceding the related Securitization
Transaction;
(2) the extent of outsourcing the Servicer utilizes;
(3) whether there has been previous disclosure of material
noncompliance with the applicable servicing criteria with respect
to other securitizations of residential mortgage loans involving
the Servicer as a servicer during the three-year period
immediately preceding the related Securitization Transaction;
(4) whether the Servicer has been terminated as servicer in
a residential mortgage loan securitization, either due to a
servicing default or to application of a servicing performance
test or trigger; and
(5) such other information as the Purchaser or any Depositor
may reasonably request for the purpose of compliance with Item
1108(b)(2) of Regulation AB;
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(C) a description of any material changes during the three-year
period immediately preceding the related Securitization Transaction to
the Servicer's policies or procedures with respect to the servicing
function it will perform under this Agreement and any Reconstitution
Agreements for mortgage loans of a type similar to the Mortgage Loans;
(D) information regarding the Servicer's financial condition, to
the extent that there is a material risk that an adverse financial event
or circumstance involving the Servicer could have a material adverse
effect on the performance by the Company of its servicing obligations
under this Agreement or any Reconstitution Agreement;
(E) information regarding advances made by the Servicer on the
Mortgage Loans and the Servicer's overall servicing portfolio of
residential mortgage loans for the three-year period immediately
preceding the related Securitization Transaction, which may be limited
to a statement by an authorized officer of the Servicer to the effect
that the Servicer has made all advances required to be made on
residential mortgage loans serviced by it during such period, or, if
such statement would not be accurate, information regarding the
percentage and type of advances not made as required, and the reasons
for such failure to advance;
(F) a description of the Servicer's processes and procedures
designed to address any special or unique factors involved in servicing
loans of a similar type as the Mortgage Loans;
(G) a description of the Servicer's processes for handling
delinquencies, losses, bankruptcies and recoveries, such as through
liquidation of mortgaged properties, sale of defaulted mortgage loans or
workouts; and
(H) information as to how the Servicer defines or determines
delinquencies and charge-offs, including the effect of any grace period,
re-aging, restructuring, partial payments considered current or other
practices with respect to delinquency and loss experience.
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(d) If so requested by the Purchaser or any Depositor for the purpose of
satisfying its reporting obligation under the Exchange Act with respect to any
class of asset-backed securities, the Company shall (or shall cause each
Subservicer and Third-Party Originator to) (i) notify the Purchaser and any
Depositor in writing of (A) any material litigation or governmental
proceedings pending against the Company, any Subservicer or any Third-Party
Originator and (B) any affiliations or relationships that develop following
the closing date of a Securitization Transaction between the Company, any
Subservicer or any Third-Party Originator and any of the parties specified in
clause (D) of paragraph (a) of this Section (and any other parties identified
in writing by the requesting party) with respect to such Securitization
Transaction, and (ii) provide to the Purchaser and any Depositor a description
of such proceedings, affiliations or relationships.
(e) As a condition to the succession to the Company or any Subservicer
as servicer or subservicer under this Agreement or any Reconstitution
Agreement by any Person (i) into which the Company or such Subservicer may be
merged or consolidated, or (ii) which may be appointed as a successor to the
Company or any Subservicer, the Company shall provide to the Purchaser and any
Depositor, at least 15 calendar days prior to the effective date of such
succession or appointment, (x) written notice to the Purchaser and any
Depositor of such succession or appointment and (y) in writing and in form and
substance reasonably satisfactory to the Purchaser and such Depositor, all
information reasonably requested by the Purchaser or any Depositor in order to
comply with its reporting obligation under Item 6.02 of Form 8-K with respect
to any class of asset-backed securities.
(f) In addition to such information as the Company, as servicer, is
obligated to provide pursuant to other provisions of this Agreement, if so
requested by the Purchaser or any Depositor, the Company shall provide such
information regarding the performance or servicing of the Mortgage Loans as is
reasonably required by the Purchaser or any Depositor to facilitate
preparation of distribution reports in accordance with Item 1121 of Regulation
AB and to permit the Purchaser or such Depositor to comply with the provisions
of Regulation AB relating to Static Pool Information regarding the performance
of the Mortgage Loans on the basis of the Purchaser's or such Depositor's
reasonable, good faith interpretation of the requirements of Item
1105(a)(1)-(3) of Regulation AB (including without limitation as to the format
and content of such Static Pool Information). Such information shall be
provided concurrently with the monthly reports otherwise required to be
delivered by the Company under this Agreement, commencing with the first such
report due not less than ten (10) Business Days following such request.
Section 13.4. Servicer Compliance Statement.
On or before March 15 of each calendar year, commencing in 2007, the
Company shall deliver to the Purchaser and any Depositor a statement of
compliance addressed to the Purchaser and such Depositor and signed by an
authorized officer of the Company, to the effect that (i) a review of the
Company's activities during the immediately preceding calendar year (or
applicable portion thereof) and of its performance under this Agreement and
any applicable Reconstitution Agreement during such period has been made under
such officer's supervision, and (ii) to the best of such officers' knowledge,
based on such review, the Company has fulfilled all of its obligations under
this Agreement and any applicable Reconstitution Agreement in all
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material respects throughout such calendar year (or applicable portion
thereof) or, if there has been a failure to fulfill any such obligation in any
material respect, specifically identifying each such failure known to such
officer and the nature and the status thereof.
Section 13.5. Report on Assessment of Compliance and Attestation.
(a) On or before March 15 of each calendar year, commencing in 2007, the
Company shall:
(i) deliver to the Purchaser and any Depositor a report (in form
and substance reasonably satisfactory to the Purchaser and such
Depositor) regarding the Company's assessment of compliance with the
Servicing Criteria during the immediately preceding calendar year, as
required under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122
of Regulation AB. Such report shall be addressed to the Purchaser and
such Depositor and signed by an authorized officer of the Company, and
shall address each of the Servicing Criteria specified on a
certification substantially in the form of Exhibit K hereto delivered to
the Purchaser concurrently with the execution of this Agreement;
(ii) deliver to the Purchaser and any Depositor a report of a
registered public accounting firm reasonably acceptable to the Purchaser
and such Depositor that attests to, and reports on, the assessment of
compliance made by the Company and delivered pursuant to the preceding
paragraph. Such attestation shall be in accordance with Rules 1-02(a)(3)
and 2-02(g) of Regulation S-X under the Securities Act and the Exchange
Act;
(iii) cause each Subservicer, and each Subcontractor determined by
the Company pursuant to Section 13.6(b) to be "participating in the
servicing function" within the meaning of Item 1122 of Regulation AB, to
deliver to the Purchaser and any Depositor an assessment of compliance
and accountants' attestation as and when provided in paragraphs (a) and
(b) of this Section; and
(iv) if requested by the Purchaser or any Depositor not later than
February 1 of the calendar year in which such certification is to be
delivered, deliver to the Purchaser, any Depositor and any other Person
that will be responsible for signing the certification (a "Sarbanes
Certification") required by Rules 13a-14(d) and 15d-14(d) under the
Exchange Act (pursuant to Section 302 of the Xxxxxxxx-Xxxxx Act of 2002)
on behalf of an asset-backed issuer with respect to a Securitization
Transaction a certification in the form attached hereto as Exhibit H.
The Company acknowledges that the parties identified in clause (a)(iv)
above may rely on the certification provided by the Company pursuant to such
clause in signing a Sarbanes Certification and filing such with the
Commission. Neither the Purchaser nor any Depositor will request delivery of a
certification under clause (a)(iv) above, unless a Depositor is required under
the Exchange Act to file an annual report on Form 10-K with respect to an
issuing entity whose asset pool includes Mortgage Loans.
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(b) Each assessment of compliance provided by a Subservicer pursuant to
Section 13.5(a)(i) shall address each of the Servicing Criteria specified on a
certification substantially in the form of Exhibit K hereto delivered to the
Purchaser concurrently with the execution of this Agreement or, in the case of
a Subservicer subsequently appointed as such, on or prior to the date of such
appointment. An assessment of compliance provided by a Subcontractor pursuant
to Section 13.5(a)(iii) need not address any elements of the Servicing
Criteria other than those specified by the Company pursuant to Section 13.6.
Section 13.6. Use of Subservicers and Subcontractors.
The Company shall not hire or otherwise utilize the services of any
Subservicer to fulfill any of the obligations of the Company as servicer under
this Agreement or any Reconstitution Agreement unless the Company complies
with the provisions of paragraph (a) of this Section. The Company shall not
hire or otherwise utilize the services of any Subcontractor, and shall not
permit any Subservicer to hire or otherwise utilize the services of any
Subcontractor, to fulfill any of the obligations of the Company as servicer
under this Agreement or any Reconstitution Agreement unless the Company
complies with the provisions of paragraph (b) of this Section.
(a) It shall not be necessary for the Company to seek the consent of the
Purchaser or any Depositor to the utilization of any Subservicer. The Company
shall cause any Subservicer used by the Company (or by any Subservicer) for
the benefit of the Purchaser and any Depositor to comply with the provisions
of this Section and with Sections 13.2, 13.3(c) and (e), 13.4, 13.5 and 13.7
of this Agreement to the same extent as if such Subservicer were the Company,
and to provide the information required with respect to such Subservicer under
Section 13.3(d) of this Agreement. The Company shall be responsible for
obtaining from each Subservicer and delivering to the Purchaser and any
Depositor any servicer compliance statement required to be delivered by such
Subservicer under Section 13.4, any assessment of compliance and attestation
required to be delivered by such Subservicer under Section 13.5 and any
certification required to be delivered to the Person that will be responsible
for signing the Sarbanes Certification under Section 13.5 as and when required
to be delivered.
(b) It shall not be necessary for the Company to seek the consent of the
Purchaser or any Depositor to the utilization of any Subcontractor. The
Company shall promptly upon request provide to the Purchaser and any Depositor
(or any designee of the Depositor, such as a master servicer or administrator)
a written description (in form and substance satisfactory to the Purchaser and
such Depositor) of the role and function of each Subcontractor utilized by the
Company or any Subservicer, specifying (i) the identity of each such
Subcontractor, (ii) which (if any) of such Subcontractors are "participating
in the servicing function" within the meaning of Item 1122 of Regulation AB,
and (iii) which elements of the Servicing Criteria will be addressed in
assessments of compliance provided by each Subcontractor identified pursuant
to clause (ii) of this paragraph.
As a condition to the utilization of any Subcontractor determined to be
"participating in the servicing function" within the meaning of Item 1122 of
Regulation AB, the Company shall cause any such Subcontractor used by the
Company (or by any Subservicer) for the benefit of the Purchaser and any
Depositor to comply with the provisions of Sections 13.5
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and 13.7 of this Agreement to the same extent as if such Subcontractor were
the Company. The Company shall be responsible for obtaining from each
Subcontractor and delivering to the Purchaser and any Depositor any assessment
of compliance and attestation required to be delivered by such Subcontractor
under Section 13.5, in each case as and when required to be delivered.
Section 13.7. Indemnification; Remedies.
(a) The Company shall indemnify the Purchaser, each affiliate of the
Purchaser, and each of the following parties participating in a Securitization
Transaction: each sponsor and issuing entity; each Person responsible for the
preparation, execution or filing of any report required to be filed with the
Commission with respect to such Securitization Transaction, or for execution
of a certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the
Exchange Act with respect to such Securitization Transaction; each broker
dealer acting as underwriter, placement agent or initial purchaser, each
Person who controls any of such parties or the Depositor (within the meaning
of Section 15 of the Securities Act and Section 20 of the Exchange Act); and
the respective present and former directors, officers, employees and agents of
each of the foregoing and of the Depositor, and shall hold each of them
harmless from and against any losses, damages, penalties, fines, forfeitures,
legal fees and expenses and related costs, judgments, and any other costs,
fees and expenses that any of them may sustain arising out of or based upon:
(i)(A) any untrue statement of a material fact contained or
alleged to be contained in any information, report, certification,
accountants' letter or other material provided under this Article 13 by
or on behalf of the Company, or provided in written or electronic form
under this Article 13 by or on behalf of any Subservicer, Subcontractor
or Third-Party Originator (collectively, the "Company Information"), or
(B) the omission or alleged omission to state in the Company Information
a material fact required to be stated in the Company Information or
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, by
way of clarification, that clause (B) of this paragraph shall be
construed solely by reference to the Company Information and not to any
other information communicated in connection with a sale or purchase of
securities, without regard to whether the Company Information or any
portion thereof is presented together with or separately from such other
information;
(ii) any failure by the Company, any Subservicer, any
Subcontractor or any Third-Party Originator to deliver any information,
report, certification, accountants' letter or other material when and as
required under this Article 13, including (except as provided below) any
failure by the Company to identify pursuant to Section 13.6(b) any
Subcontractor "participating in the servicing function" within the
meaning of Item 1122 of Regulation AB; or
(iii) any breach by the Company of a representation or warranty
set forth in Section 13.2(a) or in a writing furnished pursuant to
Section 13.2(b) and made as of a date prior to the closing date of the
related Securitization Transaction, to
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the extent that such breach is not cured by such closing date, or any
breach by the Company of a representation or warranty in a writing
furnished pursuant to Section 13.2(b) to the extent made as of a date
subsequent to such closing date.
In the case of any failure of performance described in clause (a)(ii) of
this Section, the Company shall promptly reimburse the Purchaser, any
Depositor, as applicable, and each Person responsible for the preparation,
execution or filing of any report required to be filed with the Commission
with respect to such Securitization Transaction, or for execution of a
certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange
Act with respect to such Securitization Transaction, for all costs reasonably
incurred by each such party in order to obtain the information, report,
certification, accountants' letter or other material not delivered as required
by the Company, any Subservicer, any Subcontractor or any Third-Party
Originator.
(b) (i) Any failure by the Company, any Subservicer, any Subcontractor
or any Third-Party Originator to deliver any information, report,
certification, accountants' letter or other material when and as required
under this Article 13, or any breach by the Company of a representation or
warranty set forth in Section 13.2(a) or in a writing furnished pursuant to
Section 13.2(b) and made as of a date prior to the closing date of the related
Securitization Transaction, to the extent that such breach is not cured by
such closing date, or any breach by the Company of a representation or
warranty in a writing furnished pursuant to Section 13.2(b) to the extent made
as of a date subsequent to such closing date, shall immediately and
automatically, without notice or grace period, constitute an Event of Default
with respect to the Company under this Agreement and any applicable
Reconstitution Agreement, and shall entitle the Purchaser or Depositor, as
applicable, in its sole discretion to terminate the rights and obligations of
the Company as servicer under this Agreement and/or any applicable
Reconstitution Agreement without payment (other than for payment of accrued
fees and reimbursable expenses owed to the Company thereunder at the time of
such termination) (notwithstanding anything in this Agreement or any
applicable Reconstitution Agreement to the contrary) of any compensation to
the Company; provided that to the extent that any provision of this Agreement
and/or any applicable Reconstitution Agreement expressly provides for the
survival of certain rights or obligations following termination of the Company
as servicer, such provision shall be given effect.
(ii) Any failure by the Company, any Subservicer or any Subcontractor to
deliver any information, report, certification or accountants' letter when and
as required under Section 13.4 or 13.5, including any failure by the Company
to identify pursuant to Section 13.6(b) any Subcontractor "participating in
the servicing function" within the meaning of Item 1122 of Regulation AB,
which continues unremedied for ten calendar days after the date on which such
information, report, certification or accountants' letter was required to be
delivered shall constitute an Event of Default with respect to the Company
under this Agreement and any applicable Reconstitution Agreement, and shall
entitle the Purchaser or Depositor, as applicable, in its sole discretion to
terminate the rights and obligations of the Company as servicer under this
Agreement and/or any applicable Reconstitution Agreement without payment
(notwithstanding anything in this Agreement to the contrary) of any
compensation to the Company; provided that to the extent that any provision of
this Agreement and/or any applicable Reconstitution Agreement expressly
provides for the survival of certain rights or obligations following
termination of the Company as servicer, such provision shall be given effect.
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Neither the Purchaser nor any Depositor shall be entitled to terminate
the rights and obligations of the Company pursuant to this subparagraph
(b)(ii) if a failure of the Company to identify a Subcontractor "participating
in the servicing function" within the meaning of Item 1122 of Regulation AB
was attributable solely to the role or functions of such Subcontractor with
respect to mortgage loans other than the Mortgage Loans.
(iii) The Company shall promptly reimburse the Purchaser (or any
designee of the Purchaser, such as a master servicer) and any Depositor, as
applicable, for all reasonable expenses incurred by the Purchaser (or such
designee) or such Depositor, as such are incurred, in connection with the
termination of the Company as servicer and the transfer of servicing of the
Mortgage Loans to a successor servicer. The provisions of this paragraph shall
not limit whatever rights the Purchaser or any Depositor may have under other
provisions of this Agreement and/or any applicable Reconstitution Agreement or
otherwise, whether in equity or at law, such as an action for damages,
specific performance or injunctive relief.
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IN WITNESS WHEREOF, the Company and the Purchaser have caused their
names to be signed hereto by their respective duly authorized officers as of
the day and year first above written.
XXXXXXX XXXXX MORTGAGE COMPANY
By: Xxxxxxx Sachs Real Estate Funding
Corp., its General Partner
By: _________________________________________
Name:
Title:
SUNTRUST MORTGAGE, INC.,
a seller and servicer
By: _________________________________________
Name:
Title:
STATE OF [ ] )
) ss:
COUNTY OF [ ] )
On the _____ day of [ ], 2005 before me, a Notary Public in and for said
State, personally appeared , known to me to be the of Xxxxxxx Xxxxx Real
Estate Funding Corp., the general partner of Xxxxxxx Sachs Mortgage Company,
the partnership that executed the within instrument and also known to me to be
the person who executed it on behalf of said partnership, and acknowledged to
me that such corporation executed the within instrument.
IN WITNESS WHEREOF, I have hereunto set my hand affixed my office seal
the day and year in this certificate first above written.
Notary Public
My Commission expires
STATE OF [ ] )
) ss:
COUNTY OF [ ] )
On the _____ day of [ ], 2005 before me, a Notary Public in and for said
State, personally appeared ____________, known to me to be the _______________
of SunTrust Mortgage, Inc., the corporation that executed the within
instrument and also known to me to be the person who executed it on behalf of
said corporation, and acknowledged to me that such corporation executed the
within instrument.
IN WITNESS WHEREOF, I have hereunto set my hand affixed my office seal
the day and year in this certificate first above written.
Notary Public
My Commission expires
EXHIBIT A
MORTGAGE LOAN SCHEDULE
See attached
A-1
EXHIBIT B
CONTENTS OF EACH MORTGAGE FILE
With respect to each Mortgage Loan, the Mortgage File shall include each
of the following items, which shall be available for inspection by the
Purchaser and any prospective Purchaser, and which shall be retained by the
Company in the Servicing File or delivered to the Custodian pursuant to
Sections 2.1 and 2.3 of the Amended and Restated Flow Seller's Warranties and
the Servicing Agreement to which this Exhibit is attached (the "Agreement"):
1. The original Mortgage Note bearing all intervening endorsements,
endorsed "Pay to the order of ______________, without recourse" and signed in
the name of the Company by an authorized officer (in the event that the
Mortgage Loan was acquired by the Company in a merger, the signature must be
in the following form: "[Company], successor by merger to [name of
predecessor]"; and in the event that the Mortgage Loan was acquired or
originated by the Company while doing business under another name, the
signature must be in the following form: "[Company], formerly know as
[previous name]").
2. The original of any personal endorsement, surety and/or guaranty
agreement executed in connection with the Mortgage Note, if any.
3. Except as set forth below, the original Mortgage, with evidence of
recording thereon or a certified true and correct copy of the Mortgage sent
for recordation. If in connection with any Mortgage Loan, the Company cannot
deliver or cause to be delivered the original Mortgage with evidence of
recording thereon on or prior to the Closing Date because of a delay caused by
the public recording office where such Mortgage has been delivered for
recordation or because such Mortgage has been lost or because such public
recording office retains the original recorded Mortgage, the Company shall
deliver or cause to be delivered to the Custodian, a photocopy of such
Mortgage, together with (i) in the case of a delay caused by the public
recording office, an Officer's Certificate of the Company stating that such
Mortgage has been dispatched to the appropriate public recording office for
recordation and that the original recorded Mortgage or a copy of such Mortgage
certified by such public recording office to be a true and complete copy of
the original recorded Mortgage will be promptly delivered to the Custodian
upon receipt thereof by the Company; or (ii) in the case of a Mortgage where a
public recording office retains the original recorded Mortgage or in the case
where a Mortgage is lost after recordation in a public recording office, a
copy of such Mortgage certified by such public recording office or by the
title insurance company that issued the title policy to be a true and complete
copy of the original recorded Mortgage.
4. The originals or certified true copies of all assumption,
modification, consolidation or extension agreements, with evidence of
recording noted thereon if recordation is required to maintain the lien of the
mortgage or is otherwise required, or, if recordation is not so required, an
original or copy of any such assumption, modification, consolidation or
extension agreements.
5. The original Assignment of Mortgage for each Mortgage Loan, in form
and substance acceptable for recording, from the Company to "______________"or
as otherwise
Exh. B-1
directed by the Purchaser. If the Mortgage Loan was acquired by the Company in
a merger, the Assignment of Mortgage must be made by "[Company], successor by
merger to [name of predecessor]." If the Mortgage Loan was acquired or
originated by the Company while doing business under another name, the
Assignment of Mortgage must be by "[Company], formerly know as [previous
name]." Subject to the foregoing and where permitted under the Applicable Laws
of the jurisdiction wherein the Mortgaged property is located, such
Assignments of Mortgage may be made by blanket assignments for Mortgage Loans
secured by the Mortgaged Properties located in the same county.
6. Originals or certified true copies of all intervening assignments of
the Mortgage necessary to show a complete chain of title from the original
mortgagee to the Company, with evidence of recording thereon, or if any such
intervening assignment has not been returned from the applicable recording
office or has been lost or if such public recording office retains the
original recorded assignments of mortgage, the Company shall deliver or cause
to be delivered to the Custodian, a photocopy of such intervening assignment,
together with (i) in the case of a delay caused by the public recording
office, an Officer's Certificate of the Company stating that such intervening
assignment of mortgage has been dispatched to the appropriate public recording
office for recordation and that such original recorded intervening assignment
of mortgage or a copy of such intervening assignment of mortgage certified by
the appropriate public recording office or by the title insurance company that
issued the title policy to be a true and complete copy of the original
recorded intervening assignment of mortgage will be promptly delivered to the
Custodian upon receipt thereof by the Company; or (ii) in the case of an
intervening assignment where a public recording office retains the original
recorded intervening assignment or in the case where an intervening assignment
is lost after recordation in a public recording office, a copy of such
intervening assignment certified by such public recording office to be a true
and complete copy of the original recorded intervening assignment.
7. The original mortgage policy of title insurance or evidence of title.
8. Any security agreement, chattel mortgage or equivalent executed in
connection with the Mortgage.
With respect to each Mortgage Loan, the Mortgage File shall include each
of the following items to the extent in the possession of the Company or in
the possession of the Company's agent(s):
9. Verification of Mortgage Insurance.
10. The original hazard insurance policy and, if required by law,
flood insurance policy, in accordance with Section 4.10 of the Agreement.
11. Residential loan application.
12. Mortgage Loan closing statement.
13. Verification of employment and income, unless originated under
the Company's Limited Documentation program, FNMA Timesaver Plus.
Exh. B-2
14. Verification of acceptable evidence of source and amount of down
payment.
15. Credit report on the Mortgagor, if available.
16. Residential appraisal report.
17. Photograph of the Mortgaged Property.
18. Survey of the Mortgaged Property, if required by the title company
or Applicable Law.
19. Copy of each instrument necessary to complete identification of any
exception set forth in the exception schedule in the title policy, i.e. map or
plat, restrictions, easements, sewer agreements, home association
declarations, etc.
20. All required disclosure statements.
21. If available, termite report, structural engineer's report, water
potability and septic certification.
22. Sales contract, if applicable.
23. Evidence of payment of taxes and insurance premiums, insurance claim
files, correspondence, current and historical computerized data files, and all
other processing, underwriting and closing papers and records which are
customarily contained in a mortgage loan file and which are required to
document the Mortgage Loan or to service the Mortgage Loan.
24. Amortization schedule, if available.
25. Original power of attorney, if applicable.
In the event an Officer's Certificate of the Company is delivered to the
Custodian because of a delay caused by the public recording office in
returning any recorded document, the Company shall deliver to the Custodian,
within 180 days of the Closing Date, an Officer's Certificate which shall (i)
identify the recorded document, (ii) state that the recorded document has not
been delivered to the Custodian due solely to a delay caused by the public
recording office, (iii) state the amount of time generally required by the
applicable recording office to record and return a document submitted for
recordation, and (iv) specify the date the applicable recorded document will
be delivered to the Custodian. The Company shall be required to deliver to the
Custodian the applicable recorded document by the date specified in (iv)
above. An extension of the date specified in (iv) above may be requested form
the Purchaser, which consent shall not be unreasonably withheld.
Exh. B-3
EXHIBIT C
FORM OF CUSTODIAL AGREEMENT
CUSTODIAL AGREEMENT
CUSTODIAL AGREEMENT, dated as of [[ ]] (the "Agreement"), among Xxxxxxx
Xxxxx Mortgage Company (the "Purchaser"), having an address of 00 Xxxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, SunTrust Mortgage, Inc., having an address
at 000 Xxxxxx Xxx., Xxxxxxxx, XX 00000 (in such capacity the "Seller"), and
JPMorgan Chase Bank having an address at 0000 Xxxxxx Xxxxxx, 00xx xxxxx,
Xxxxxxx, Xxxxx 00000 (the "Custodian").
WITNESSETH:
WHEREAS, the Purchaser has purchased from the Seller certain one- to
four- family, first-lien, fixed rate residential mortgage loans (the "Mortgage
Loans") pursuant to the terms and conditions of the Amended and Restated Flow
Seller's Warranties and Servicing Agreement, dated as of December 1, 2005 (the
"Seller's Warranties and Servicing Agreement"), between the Seller and the
Purchaser and the Warranty Xxxx of Sale dated [[ ]];
WHEREAS, the Seller has agreed to sell to the Purchaser, with respect to
the Mortgage Loans, the Mortgage Loans pursuant to the terms and conditions of
the Seller's Warranties and Servicing Agreement;
WHEREAS, the Mortgage Loans purchased pursuant to the Seller's
Warranties and Servicing Agreement will be serviced by the Seller (in such
capacity, the "Servicer") pursuant to the Seller's Warranties and Servicing
Agreement; and
WHEREAS, the Purchaser desires to have the Custodian take possession of
the mortgage notes for the Mortgage Loans, along with certain other documents
specified herein, as the Custodian of the Purchaser or subsequent purchasers
of the Mortgage Loans, in accordance with the terms and conditions hereof.
NOW THEREFORE, in consideration of the mutual undertaking herein
expressed, the parties hereto hereby agree as follows:
1. On or prior to the Closing Date (as defined in the Seller's
Warranties and Servicing Agreement), the Seller shall deliver and release to
the Custodian, subject to and in accordance with the relevant section of the
Seller's Warranties and Servicing Agreement, the following documents,
pertaining to each of the Mortgage Loans identified in the Mortgage Loan
Schedule (the "Mortgage Loan Schedule") a copy of which Mortgage Loan Schedule
is annexed as Exhibit 1 hereto:
(a) the original executed mortgage note endorsed, "Pay to the
order of ______________, without recourse", or as otherwise directed by
the Purchaser, and signed in the name of the Seller by an officer of the
Seller, or a lost note affidavit with a copy of the original mortgage
note attached; the mortgage note shall include all
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intervening original endorsements showing a complete chain of title from
the originator to the Seller;
(b) the original executed mortgage, or a certified copy thereof,
in either case with evidence of recording noted thereon; the standard
FNMA/Xxxxxxx Mac Condominium Rider or PUD Rider must be attached to the
mortgage if the mortgaged property is a condominium or is located in a
PUD;
(c) the original assignment of each mortgage from the Seller to
"[in blank]" or as otherwise directed by the Purchaser;
(d) the original policy of title insurance, or attorney's opinion
of title (accompanied by an abstract of title), as the case may be, with
respect to each Mortgage Loan;
(e) originals of any intervening assignments of the mortgage
necessary to show a complete chain of title from the original mortgagee
to the Seller with evidence of recording noted thereon; provided, that
such intervening assignments may be in the form of blanket assignments,
a copy of which, with evidence of recording noted thereon, shall be
acceptable;
(f) originals of all modification agreements with evidence of
recording noted thereon if recordation is required to maintain the lien
of the mortgage or is otherwise required, or, if recordation is not so
required, an original or copy of any such modification agreement;
(g) for each Mortgage Loan with respect to which the borrower's
name as it appears on the note does not match the borrower's name on the
Mortgage Loan Schedule, one of the following: (i) the original of the
assumption with evidence of recording thereon if required to maintain
the lien of the mortgage or if otherwise required, or, if recordation is
not so required, an original or copy of such assumption agreement; or
(ii) a copy of a marriage certificate, court order, decree or other
document evidencing that the two different names refer to the same
person;
(h) to the extent applicable, (x) an original power of attorney
with evidence of recordation thereon if necessary to maintain the lien
on the Mortgage or if the document to which such power of attorney
relates is required to be recorded, or, if recordation is not so
required, an original of such power of attorney, and (y) an original
guaranty agreement; and
(i) personal endorsement and/or guaranty agreements for all
non-individual loans. (corporations, partnerships, trusts, estates,
etc.)
Notwithstanding the foregoing, with respect to any power of attorney,
mortgage, assignment, intervening assignment, assumption agreement,
modification agreement or deed of sale for which a certified copy is delivered
in accordance with the foregoing, the copy must be certified as true and
complete by the appropriate public recording office, or, if the original has
been submitted for recording but has not yet been returned from the applicable
recording office,
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an officer of the Seller must certify the copy as a true copy of the original
submitted for recordation. Copies of blanket intervening assignments, however,
need not be certified.
2. From time to time, the Servicer shall forward to the Custodian
additional documents evidencing an assumption or modification of a Mortgage
Loan approved by the Purchaser and the Servicer. All Mortgage Loan documents
held by the Custodian as to each Mortgage Loan are referred herein as the
"Custodian's Mortgage File." The Custodian, in its independent capacity,
agrees to act as custodian for the Purchaser and any successor to the
Purchaser in accordance with the terms and conditions of this Agreement,
including upon any securitization of the Mortgage Loans, as custodian for the
trustee (the "Trustee") under the securitization trust agreement.
3. With respect to each Custodian's Mortgage File delivered to the
Custodian, the Custodian is exclusively the Custodian for the Purchaser, and
the Purchaser's successor or assigns. The Custodian shall hold all Custodian's
Mortgage Files for the exclusive use and benefit of the Purchaser and, except
as otherwise provided herein, shall make disposition thereof only in
accordance with the terms of this Agreement and the written instructions of
the Purchaser. The Custodian shall segregate by group (as directed by the
Purchaser) and maintain continuous custody of all Custodian's Mortgage Files
received by it in secure and fire resistant facilities in accordance with
customary standards for such custody.
4. Upon the initial sale of the Mortgage Loans, the Custodian shall
deliver to the Purchaser a Custody Receipt in the form annexed hereto as
Exhibit 3 (the "Custody Receipt") which includes verification that, except as
shown on an exceptions list attached thereto:
(a) all documents required to be delivered to it pursuant to
Sections 1(a) through (e) of this Agreement are in the Custodian's
possession; provided, that, the Custodian shall separately note on the
Data Collection Schedule (as defined below) any Mortgage Loans with
respect to which the original note is missing and a lost note affidavit
and a copy of such note is delivered;
(b) all documents required to be delivered to it pursuant to
Sections 1(f) and 1(g) of this Agreement are in the Custodian's
possession; provided, that:
(i) the Custodian shall have no obligation to verify the
receipt of any such documents the existence of which was not made
known to the Custodian by the Custodian's Mortgage File, and
(ii) the Custodian shall have no obligation to determine
whether recordation of any such document is necessary;
(c) all documents required to be delivered to it pursuant to
Section 1(i) of this Agreement are in the Custodian's possession;
provided, that, the Custodian shall have no obligation to verify the
receipt of any such documents the existence of which was not made known
to the Custodian by the Custodian's Mortgage File;
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(d) all powers of attorney and other documents required to be
delivered to it pursuant to Section 1(h) of this Agreement are in the
Custodian's possession; provided, that:
(i) the Custodian shall have no obligation to verify the
receipt of any such documents the existence of which was not made
known to the Custodian by the Custodian's Mortgage File, and
(ii) the Custodian shall have no obligation to determine
whether recordation of any such power of attorney is necessary
(except that the Custodian shall conclude that if the document to
which such power of attorney relates is a mortgage, interim
assignment, assignment or a document that was recorded, then the
Custodian shall conclude that such power of attorney should have
been recorded);
(e) all documents have been examined by the Custodian and appear
regular on their face and relate to the Mortgage Loans;
(f) based only on the Custodian's examination of the foregoing
documents, the information set forth on the Mortgage Loan Schedule
representing each Mortgage Loan accurately reflects the following:
(i) Mortgage Loan number,
(ii) the first payment date (acceptable of accurate within
30 days),
(iii) the maturity date (acceptable of accurate within 30
days),
(iv) the original loan amount,
(v) the original interest rate,
(vi) the full name of the borrower(s) (acceptable if first
and/or middle names are missing or initialized (e.g., X.X. Xxxxx
would match Xxxxxxx Xxxxx Xxxxx), acceptable if first names are
shortened or lengthened or nicknames substituted therefor (e.g.,
Xxx for Xxxxxx or Xxxx for Xxxxxxx), acceptable if middle or
maiden names are omitted, acceptable if "Jr.", "Sr.", "II" and
similar designations are omitted, acceptable if discrepancy is a
typographical error),
(vii) the property address, including zip code (acceptable
if the first three digits of the zip code match), and
(viii) the original principal and interest payment.
(g) each mortgage note has been endorsed and each assignment of
mortgage has been assigned as described in Section 1 hereof; provided,
that, the
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Custodian shall have no obligation to confirm that the assignments are
in recordable form.
In making the verification required by this Section 4, the Custodian may
rely conclusively on the Mortgage Loan Schedule attached hereto, and the
Custodian shall have no obligation to independently verify the correctness of
such Mortgage Loan Schedule. If any discrepancy exists between the Verified
Information and the Mortgage Loan Schedule, the Custodian shall notify the
Purchaser and the Servicer by attaching a list of such discrepancies to the
Final Certification.
It is understood that before delivering the Custody Receipt, the
Custodian shall examine the Mortgage Loan Documents to confirm the following
(and shall report any exceptions to these confirmations in the exceptions
report attached to the Custody Receipt):
(1) each mortgage note, mortgage, assumption, modification,
guaranty, power of attorney and deed of sale bears a signature or
signatures that appear to be original and that purport to be that of the
Person or Persons named as the maker and mortgagor/trustor or, if
photocopies are permitted by this Agreement, that such copies bear a
reproduction of such signature or signatures;
(2) the principal amount of the indebtedness secured by the
mortgage is identical to the original principal amount of the note;
(3) the interest rate shown on the note is identical to the
interest rate shown on the Mortgage Loan Schedule;
(4) the assignment of the mortgage from the Seller is in the form
required pursuant to Section l(c) hereof, and bears the signature of the
Seller, that appears to be an original and any other necessary party or,
if photocopies are permitted by this Agreement, such copies bear a
reproduction of such signature or signatures;
(5) if intervening assignments are included in the Custodian's
Mortgage File, each such intervening assignment bears the signature of
the mortgagee and/or the assignor (and any other necessary party) that
appears to be an original or, if photocopies are permitted by this
Agreement, that such copies bear a reproduction of such signature or
signatures; and
(6) the title insurance policy or certificate of title is for an
amount not less than the original principal amount of the related note.
(7) Prior to [ ], the Custodian shall deliver to the Purchaser a
Final Certification in the form of Exhibit 4 evidencing the completeness
of the Custodian's Mortgage File for each Mortgage Loan, with any
applicable exceptions noted on such Certification.
(8) No later than the fifth Business Day of each month, commencing
in [ ], the Custodian shall deliver to the Servicer, GS Mortgage
Securities Corp., as depositor and the Trustee in electronic or hard
copy format, as requested by the Purchaser, the
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exceptions list required by Section 4 hereof, updated to remove
exceptions cured since the date on which the Custody Receipt was issued
pursuant to Section 4 hereof. In the event the Mortgage Loans are
securitized, the Custodian will only be required to deliver the
exceptions list upon request. In addition, such monthly reports shall
list any document with respect to which the Seller delivered a copy
certifying that the original had been sent for recording, until such
time as the Seller delivers to the Custodian the original of such
document or a copy thereof certified by the appropriate public recording
office. The Data Collection Schedule shall not be included unless
specifically requested in advance. Except as specifically provided
above, the Custodian shall be under no duty to review, inspect or
examine such documents to determine that any of them are enforceable or
appropriate for their prescribed purpose. During the life of the
Mortgage Loans, in the event the Custodian discovers any defect with
respect to the Custodian's Mortgage Files, the Custodian shall give
written notice of such defect to the Purchaser.
(9) The Custodian shall hold in its possession and custody at
JPMorgan Chase Bank, 0000 Xxxxxx Xxxxxx, 00xx xxxxx, Xxxxxxx, XX 00000,
for the Purchaser or any assignee of the Purchaser, all of the
Custodian's Mortgage Files delivered from time to time by the Servicer
to the Custodian.
(10) From time to time and as appropriate for the foreclosure or
servicing of the Mortgage Loans, the Purchaser hereby authorizes the
Custodian to release to the Servicer (or, after securitization of the
Mortgage Loans, if so designated by the Servicer, to the Trustee),
within three (3) business days of receipt of either (i) a written
request and receipt of the Servicer in the form attached hereto as
Exhibit 5(a) executed by one of the authorized signatories set forth on
Exhibit 6, as such exhibit may be updated from time to time by the
Servicer or (ii) an electronic request through the use of an electronic
file request system mutually acceptable to the Custodian and the
Servicer, a Custodian's Mortgage File to the place indicated in any such
written request from the Servicer. A list of authorized signatures for
such written requests has been furnished to the Custodian by the
Servicer. All Custodian's Mortgage Files so released to the Servicer
shall be held by it in trust for the benefit of the Purchaser. The
Servicer shall return to the Custodian the Custodian's Mortgage File
when the Servicer's need therefor in connection with such foreclosure or
servicing no longer exist, unless the Mortgage Loan shall be liquidated
or paid in full.
Servicer may provide an electronic transmission for release of documents
in a form agreed to in advance of initial transmission by both Servicer and
Custodian containing information readable without intervention by Custodian
data processing operations computer hardware and software staff, and arranged
in a record layout to be specified by Custodian (a "Paperless Release
Request"). Servicer agrees to maintain and control access to electronic
signature information and assumes liability for any unauthorized use thereof.
Servicer also agrees to maintain accurate records of electronic transactions
related to the Custodial Files. Servicer hereby authorizes Custodian to
automatically append the electronic signature of an Authorized Representative
to the applicable request for release of documents and agrees and acknowledges
that by appending such Authorized Representatives electronic signature, the
Custodian shall be entitled to rely thereon. For purposes of this Agreement
the term "electronic
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signature" is defined as an "electronic identifier intended by the person
using it to have the same force and effect as the use of a manual signature."
Servicer agrees in advance to comply with all Custodian data encryption,
security and record layout standards in connection with any Paperless Release
Request as may be amended from time to time upon notice from Custodian to
Servicer. Custodian reserves the right to restrict or suspend Servicer's
access to the Custodian's computer systems for maintenance or repairs or for
any other reason in Custodian's sole discretion, provided however that
Custodian shall promptly provide Servicer notice of such restriction or
suspension.
Notwithstanding the foregoing, Servicer is authorized to transmit and
Custodian is authorized to accept signed facsimile copies of Requests for
Release.
(11) Upon the repurchase of any Mortgage Loan or the payment or
liquidation in full of the Mortgage Loan, and within three Business Days
of receipt by the Custodian of the Servicer's request for release,
receipt and certification either (i) in the form attached hereto as
Exhibit 5(b), executed by one of the authorized signatories set forth on
Exhibit 6 as such exhibit may be updated from time to time by the
Servicer or (ii) through the use of an electronic request system
mutually acceptable to the Custodian and the Servicer (which
certification shall include a statement to the effect that all amounts
received in connection with such repurchase or payment in full or
liquidation have been credited to the Collection Account as provided in
the Seller's Warranties and Servicing Agreement), the Custodian shall
release the related Custodian's Mortgage File to the Servicer.
(12) Upon reasonable prior written notice, the Custodian shall
permit the Purchaser and its agents, and servicing officers of the
Servicer reasonable access to its premises during the Custodian's normal
business hours to inspect the Custodian's Mortgage Files and all other
documents, records and other papers in possession or under the control
of the Custodian relating to the Mortgage Loans serviced by the
Servicer. Each such person shall comply with the Custodian's reasonable
standards and procedures for physical security and personal conduct
while on the Custodian's premises. Any person failing, in the
Custodian's sole but reasonable business judgment, to meet such
standards may be removed or denied access to the premises. The Purchaser
shall be responsible for any reasonable expense in connection with such
examination.
(13) The Purchaser, with or without cause, or upon failure by the
Custodian to perform or observe any term of this Agreement, may remove
and discharge the Custodian or any successor Custodian thereafter
appointed from the performance of its duties under this Agreement upon
written notice from the Purchaser to the Custodian or the successor
Custodian; provided that at least sixty (60) days prior written notice
shall be given with respect to a removal or discharge without cause.
Having given notice of such removal, the Purchaser shall promptly
appoint a successor Custodian to act on its behalf by written
instrument, an original counterpart of which instrument shall be
delivered to the Seller and one copy to the successor Custodian. In the
event of any such removal, the Custodian shall promptly transfer, to the
successor Custodian as directed, all Custodian's Mortgage Files being
administered under this Agreement. Such transfer shall be at the
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Custodian's expense only if the Custodian is discharged and removed upon
a failure by the Custodian to perform or observe any material terms of
this Agreement; otherwise such transfer shall occur at the expense of
the Purchaser. In any event, the Custodian shall be entitled to the
payment of all outstanding fees and expenses of the Custodian due the
Custodian at the time of such removal by the Purchaser. In the event
that the Purchaser removes the Custodian without cause, any transfer or
set up fees payable to the successor Custodian will be payable by the
Purchaser. In any event, the reasonable ongoing fees of any successor
Custodian shall be paid by the Purchaser.
(14) It is understood that the Custodian will charge for its
services under this agreement as set forth in a separate agreement
between the Custodian and the Purchaser, the payment of which shall be
the sole obligation of the Purchaser.
(15) The Custodian shall, at its own expense, maintain at all
times during the existence of this Agreement and keep in full force and
effect, (a) fidelity insurance, (b) errors and omissions insurance, and
(c) all risk property insurance. All such insurance shall be in amounts,
with standard coverage and subject to deductibles, all as is customary
for insurance typically maintained by banks which act as custodian and
in an amount and with coverages not less than that required by FNMA.
Upon request, the Purchaser will be provided with certificates of
insurance, as specified in this paragraph 13.
(16) The Custodian may resign as the Custodian hereunder upon at
least sixty (60) days prior written notice to the Purchaser whereupon
the Custodian shall deliver the Custodian's Mortgage Files to Purchaser,
or a designee of the Purchaser, in accordance with directions from the
Purchaser. In the event of such resignation, or termination, the
Purchaser shall pay all outstanding fees and expenses of the Custodian
and shall appoint a successor Custodian.
(17) For the purpose of facilitating the execution of this
Custodial Agreement as herein provided and for other purposes, this
Agreement may be executed simultaneously in any number of counterparts,
each of which counterparts shall be deemed to be an original, and such
counterparts shall constitute and be one and the same instrument.
(18) Upon the request of the Purchaser, at any time, the Custodian
shall provide to the Purchaser a list of all of the Mortgage Loans owned
by the Purchaser for which the Custodian holds a Custodian's Mortgage
File pursuant to this Agreement. Such list may be in the form of a copy
of the Mortgage Loan Schedule with manual deletions to specifically
denote any Mortgage Loans paid off, repurchased or liquidated since the
date of this Agreement.
(19) The duties and obligations of the Custodian shall only be
such as are expressly set forth in this Agreement or as set forth in a
written amendment to this Agreement executed by the parties hereto or
their successors and assigns. In no event shall the Custodian be liable
for special, indirect or consequential damages, even if advised of this
possibility of the same.
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(20) All demands, notices and communications hereunder shall be in
writing and shall be deemed to have been duly given if personally
delivered, delivered by facsimile or mailed by first class mail or
overnight express mail, postage prepaid, to the parties to this
agreement at the address listed on Exhibit 2 or such other address as
may hereafter be furnished in writing to each of the parties to this
Agreement. Any such demand, notice or communication hereunder shall be
deemed to have been received on the date received, if received prior to
4 p.m. eastern time, delivered to or received at the premises of the
addressee or received at the facsimile number of the address, or, if
received after 4 p.m. eastern time, then on the next business day.
(21) This Agreement shall be construed in accordance with the laws
of the State of New York, without regard to its conflict of law
principles, and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws.
(22) The Custodian shall have no duties or obligation except those
expressly stated in this Agreement, and such duties or obligations shall
be determined solely by the express provisions of the Agreement. The
Custodian, its officers, directors, employees, agents or other
representatives shall not be personally liable 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
the Custodian by this Agreement or in reliance upon any written notice,
request, consent, certificate, order, affidavit, letter, telegram or
other document reasonably believed by it to be genuine and to have been
signed or sent by the proper party or parties; provided, however, that
the provisions of this paragraph shall not be construed to relieve the
Custodian from liability from its own negligent action, its own
negligent failure to act, or its own bad faith or willful misconduct or
any breach by the Custodian of any of its obligations hereunder, which
breach was due to negligence on the part of the Custodian. The Custodian
will be regarded as making no representations and having no
responsibilities (except as expressly set forth herein) as to the
validity, sufficiency, value, genuineness, ownership or transferability
of any Mortgage Loan, and will not be required to and will not make any
representations as to the validity, value or genuineness of any Mortgage
Loan. The Custodian shall not be obligated to take any legal action
hereunder that might in its judgment involve any expense or liability
unless it has been furnished with reasonable indemnity. The Custodian
may rely on and shall be protected in acting in good faith upon the
written instructions of the Purchaser, the Servicer and the Trustee (if
any) and such employees and representatives of the Purchaser, the
Servicer and the Trustee (if any) as each such party may hereinafter
designate in writing. The Custodian may execute any of the powers
hereunder or perform any duties hereunder either directly or through
agents or attorneys; provided, however, that the execution of such
powers by any such agents or attorneys shall not diminish or relieve the
Custodian for responsibility therefor to the same degree as if the
Custodian itself had executed such powers.
(23) The Custodian shall be entitled to obtain the advice or
opinion of counsel (which shall be either in house counsel or a
nationally recognized outside counsel) with respect to a matter of law
for which the Custodian has a reasonable question as to the rights and
duties relating to the Custodian hereunder and the Custodian shall have
no
C-9
liability for any action taken or omitted in conformity with its good
faith reliance on such advice or opinion; provided, however, that the
provisions of this paragraph shall not relieve the Custodian from
liability from its own negligent selection of counsel.
(24) This Agreement (together with the separate fee agreement
between the Purchaser and the Custodian) contains the entire agreement
between the parties relating to the subject matter hereof and may be
amended only by written agreement signed by the Purchaser and the
Custodian.
(25) The Purchaser shall have the right, without consent of the
Custodian, to assign its interest under this Agreement with respect to
some or all of the Mortgage Loans, and designate any person to exercise
any rights of the Purchaser hereunder, and the assignee or designee
shall accede to the rights and obligations hereunder of the Purchaser
with respect to such Mortgage Loans; provided, however, that the
Purchaser may not assign its interest to more than five (5) persons
without the consent of the Custodian, such consent not to be
unreasonably withheld. All references to the Purchaser in this Agreement
shall be deemed to include its assignee or designee. Upon the
Custodian's receipt of the written notification, which shall state the
name and address of the transferee and the date of sale and shall be
accompanied by the original Custody Receipt presently outstanding
delivered to the Purchaser, the Custodian shall change its records to
reflect that such transferee is the owner of such Mortgage Loan and
shall immediately issue (i) a new Custody Receipt with respect to a
portion of or all of the Mortgage Loans, as the case may be, in the name
of such transferee and (ii) a new Custody Receipt with respect to any
Mortgage Loans retained by the Purchaser; provided, that, any Custody
Receipt issued after the date of the initial sale of the Mortgage Loans
shall not (1) confirm the accuracy of the Mortgage Loan Schedule with
respect to Verified Information nor (2) include the Data Collection
Schedule. The Purchaser and the Custodian agree herein that any and all
such transferees of a Mortgage Loan shall succeed to all the rights and
obligations of the Purchaser and shall be considered a Purchaser under
this Agreement.
(26) The Purchaser agrees to indemnify and hold the Custodian, its
directors, officers, agents, employees, and other representatives
harmless against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses, or disbursements
of any kind or nature whatsoever that may be imposed on, incurred by or
asserted against it or them in any way arising out of this Agreement as
a result of any action or failure to act, so long as such action or
failure to act by it or them hereunder does not constitute bad faith,
negligence or willful misconduct of the Custodian or any of its agents,
officers, directors or employees or breach by the Custodian of its
obligations hereunder. The foregoing indemnity shall survive the
termination of this Agreement.
(27) This Agreement shall inure to the benefit of the successors
and assigns of the parties hereto.
(28) Each party agrees to keep confidential the existence of this
Agreement, the identity of the parties hereto, and any other term or
condition of this Agreement and the
C-10
transactions contemplated hereby, and to use such information solely in
order to effectuate the purpose of the Agreement; provided, that, each
party may provide confidential information to its employees, agents and
affiliates who have a need to know such information in order to
effectuate the transaction, and provided, further that such information
is identified as confidential non public information. In the event that
either party or any of its employees, agents or affiliates are requested
pursuant to, or required by, applicable law, regulation or legal process
to disclose any non public information, such party will notify the other
promptly prior to any such disclosure so that such party may seek a
protective order or other appropriate remedy or, in such party's sole
discretion, waive compliance with the terms of this Section 26. In the
event that no such protective order or other remedy is timely obtained,
or that such party waives compliance with the terms of this Section 26,
the party required to disclose such non public information or its
employees, agents or affiliates will furnish only that portion of the
non public information that it is advised by counsel is legally required
and will exercise all reasonable efforts to obtain reliable assurance
that confidential treatment will be accorded the non public information.
(29) The Custodian (or any successor thereto) shall at all times
(a) be a depository institution or trust company subject to supervision
by federal or state authority, (b) have a combined capital and surplus
of at least $10,000,000, (c) be qualified to do business in any
jurisdiction in which it holds a Custodian's Mortgage File, (d) be
qualified to act as a custodian for FNMA, the Xxxxxxx Mac and the
Government National Mortgage Association, and (e) not be an affiliate of
the Purchaser or the Seller, except insofar as the Purchaser or its
assignee gives its prior written consent.
(30) Upon the initial sale of the Mortgage Loans, the Custodian
shall deliver to the Purchaser (a) an opinion of counsel and (b) an
officer's certificate, each in form and substance reasonably
satisfactory to the Purchaser.
(31) The Custodian represents, warrants and covenants that:
(32) The Custodian is (i) a banking corporation duly organized,
validly existing and in good standing under the laws of the State of New
York and (ii) duly qualified and in good standing and in possession of
all requisite authority, power, licenses, permits and franchises in
order to execute, deliver and comply with its obligations under the
terms of this Agreement;
(a) The execution, delivery and performance of this
Agreement have been duly authorized by all necessary corporate
action and the execution and delivery of this Agreement by the
Custodian in the manner contemplated herein and the performance of
and compliance with the terms hereof by it will not (i) violate,
contravene, or create a default under any applicable laws,
licenses, or permits to the best of its knowledge, or (ii)
violate, contravene or create a default under any charter document
or bylaw of the Custodian or to the best of the Custodian's
knowledge any contract, agreement or instrument to which the
Custodian or by which any of its property may be bound and will
not result in the
C-11
creation of any lien, security interest or other charge or
encumbrance upon or with respect to any of its property;
(b) The execution and delivery of this Agreement by the
Custodian and the performance of and compliance with its
obligations and covenants hereunder do not require the consent or
approval of any governmental authority or, if such consent or
approval is required, it has been obtained;
(c) The Custodian has duly executed and delivered this
Agreement, and this Agreement, assuming due authorization,
execution and delivery by the Purchaser and Seller, constitutes a
legal, valid and binding obligation of the Custodian, enforceable
against it in accordance with its terms, except as the enforcement
thereof may be limited by applicable debtor relief laws and that
certain equitable remedies may not be available regardless of
whether enforcement is sought in equity or law; and
(d) There is no action, suit, proceeding or investigation
pending or, to the Custodian's knowledge, threatened, against the
Custodian, which seeks to prevent the consummation of the
transaction contemplated hereby or which, either in any one
instance or in the aggregate, if determined adversely to the
Custodian would adversely affect the execution, delivery or
enforceability of this Agreement, the ability of the Custodian to
perform its obligations hereunder, or have a material adverse
effect on the financial condition of the Custodian.
(e) The Custodian is not responsible for preparing or filing
any reports or returns relating to federal, state or local income
taxes with respect to this Agreement, other than for the
Custodian's compensation or for reimbursement of expenses.
(33) The Custodian will be responsible for the transmission of
mortgage files and loan documents, with insurance thereon as provided in
the normal course by the nationally recognized overnight courier service
utilized by the Custodian for such transmission. At the request of the
Purchaser, the Custodian will obtain and maintain additional insurance
with an insurance provider specified by the Purchaser against loss or
damage to such Mortgage Files and loan documents in connection with such
transmission in an amount specified by the Purchaser. The costs and
expenses incurred in connection with obtaining and maintaining such
insurance shall be the sole responsibility of the Purchaser. It is
expressly agreed that in no event shall the Custodian have any liability
for any losses or damages to any person, including, without limitation,
the Purchaser or Servicer, arising out of actions of the Custodian
consistent with this Agreement. In the absence of any written
instructions from the Purchaser with respect to the transmission of the
Custodian's Mortgage Files, the parties hereby agree that the Custodian
may utilize any nationally recognized overnight courier service and
shall be entitled to reimbursement from the Purchaser.
[Signature page follows]
C-12
IN WITNESS WHEREOF, the parties hereto have executed this Agreement by
their duly authorized officers as of the date first above written.
XXXXXXX SACHS MORTGAGE
COMPANY, as Purchaser
By: Xxxxxxx Xxxxx Real Estate Funding Corp.,
General Partner
By: ________________________________________
Name:
Title:
JPMORGAN CHASE BANK,
as Custodian
By: ________________________________________
Name:
Title:
SUNTRUST MORTGAGE, INC.,
as Seller/Servicer
By: ________________________________________
Name:
Title:
C-13
EXHIBIT D
FORM OF OPINION OF COUNSEL
Re: Sale of Series [ ] Mortgage Loans by [ ] to Xxxxxxx Xxxxx
Mortgage Company
---------------------------------------------------------
Dear Sir/Madam:
I have acted as counsel to SunTrust Mortgage, Inc. (the "Company"), with
respect to certain matters in connection with the sale by the Company of the
mortgage loans (the "Mortgage Loans") pursuant to that certain Amended and
Restated Flow Seller's Warranties and Servicing Agreement designated as
Mortgage Loan Series (the "Seller's Warranties and Servicing Agreement") by
and between the Company and Xxxxxxx Sachs Mortgage Company (the "Purchaser"),
dated as of December 1, 2005, which sale is in the form of whole Mortgage
Loans. The Mortgage Loans are listed on Schedule A to the Warranty Xxxx of
Sale issued in connection with the Seller's Warranties and Servicing
Agreement. Capitalized terms not otherwise defined herein have the meanings
set forth in the Seller's Warranties and Servicing Agreement.
I have examined the following documents:
1. the Seller's Warranties and Servicing Agreement;
2. the Custodial Agreement;
3. the form of endorsement of the Mortgage Notes; and
4. such other documents, records and papers as I have deemed
necessary and relevant as a basis for this opinion.
To the extent I have deemed necessary and proper, I have relied upon the
representations and warranties of the Company contained in the Seller's
Warranties and Servicing Agreement. I have assumed the authenticity of all
documents submitted to me as originals, the genuineness of all signatures, the
legal capacity of natural persons and the conformity to the originals of all
documents. As to factual matters, I have relied upon statements, certificates
and other assurances of public officials and/or of officers and other
representatives of the Company, and upon such other certificates as I deemed
appropriate, which factual matters have not been independently established or
verified by me.
Based upon the foregoing, it is my opinion that;
1. The Company is a corporation duly organized, validly existing and in
good standing under the laws of the state of Virginia.
2. The Company has the power to engage in the transactions contemplated
by the Seller's Warranties and Servicing Agreement and the Custodial Agreement
and all
Xxx. X-0
requisite power, authority and legal right to execute and deliver the Seller's
Warranties and Servicing Agreement, the Custodial Agreement and the Mortgage
Loans, and to perform and observe the terms and conditions of such
instruments.
3. Each person who, as an officer or attorney-in-fact of the Company,
signed (a) the Seller's Warranties and Servicing Agreement, (b) the Custodial
Agreement , and (c) any other document delivered prior hereto or on the date
hereof in connection with the sale and servicing of the Mortgage Loans in
accordance with the Seller's Warranties and Servicing Agreement and the person
was, at the respective times of such signing and delivery, and is, as of the
date hereof, duly elected or appointed, qualified and acting and as such
officer or attorney-in-fact, and the signatures of such persons appearing on
such documents are their genuine signatures.
4. Each of the Seller's Warranties and Servicing Agreement, the
Custodial Agreement and the Mortgage Loans, has been duly authorized, executed
and delivered by the Company and is a legal, valid and binding agreement
enforceable in accordance with its respective terms against the Company,
subject to the additional assumptions, exceptions, qualifications and
limitations set forth below.
5. Either (i) no consent, approval, authorization or order of any court
or governmental agency or body is required for the execution, delivery and
performance by the Company of or compliance by the Company with the Seller's
Warranties and Servicing Agreement, the Custodial Agreement or the sale and
delivery of the Mortgage Loans or the consummation of the transactions
contemplated by the Seller's Warranties and Servicing Agreement, and the
Custodial Agreement; or (ii) any required consent, approval, authorization or
order has been obtained by the Company.
6. Neither the consummation of the transactions contemplated by, nor the
fulfillment of the terms of the Seller's Warranties and Servicing Agreement
and the Custodial Agreement, will conflict with or results in or will result
in a breach of or constitutes or will constitute a default under the charter
or by-laws of the Company, the terms of any indenture or other agreement or
instrument to which the Company is a party or by which it is bound or to which
it is subject, or violates any statute or order, rule, regulations, writ,
injunction or decree of any court, governmental authority or regulatory body
to which the Company is subject or by which it is bound.
7. There is no action, suit, proceeding or investigation pending or, to
the best of my knowledge, threatened against the Company which, in my opinion,
either in any one instance or in the aggregate, may result in any material
adverse change in the business, operations, financial condition, properties or
assets of the Company or in any material impairment of the right or ability of
the Company to carry on its business substantially as now conducted or in any
material liability on the part of the Company or which would draw into
question the validity of the Seller's Warranties and Servicing Agreement, and
the Custodial Agreement, or of any action taken or to be taken in connection
with the transactions contemplated thereby, or which would be likely to impair
materially the ability of the Company to perform under the terms of the
Seller's Warranties and Servicing Agreement and the Custodial Agreement.
Exh. D-2
8. For purposes of the foregoing, I have not regarded any legal or
governmental actions, investigations or proceedings to be "threatened" unless
the potential litigant or governmental authority has manifested to the legal
department of the Company or an employee of the Company responsible for the
receipt of process a present intention to initiate such proceedings; nor have
I regarded any legal or governmental actions, investigations or proceedings as
including those that are conducted by state or federal authorities in
connection with their routine regulatory activities. The sale of each Mortgage
Note and Mortgage as and in the manner contemplated by the Seller's Warranties
and Servicing Agreement is sufficient fully to transfer all right, title and
interest of the Company thereto as noteholder and mortgagee, apart from the
rights to service the Mortgage Loans pursuant to the Seller's Warranties and
Servicing Agreement.
9. The form of endorsement that is to be used with respect to the
Mortgage Loans is legally valid and sufficient to duly endorse the Mortgage
Notes to the Purchaser. Upon the completion of the endorsement of the Mortgage
Notes and the completion of the assignments of the Mortgages, and the
recording thereof, the endorsement of the Mortgage Notes, the delivery to the
Custodian of the completed assignments of the Mortgages, and the delivery of
the original endorsed Mortgage Notes to the Custodian would be sufficient to
permit the entity to which such Mortgage Note is initially endorsed at the
Purchaser's direction, and to whom such assignment of Mortgages is initially
assigned at the Purchaser's direction, to avail itself of all protection
available under Applicable Law against the claims of any present or future
creditors of the Company, and would be sufficient to prevent any other sale,
transfer, assignment, pledge or hypothecation of the Mortgages and the
Mortgage Notes by the Company from being enforceable, such that in a properly
presented and argued case under title 11, United States Code (the "Bankruptcy
Code"), in which the Company were the debtor, a bankruptcy court having
jurisdiction over the Company would consider the transfer of the Mortgage
Loans from the Company to the Purchaser to be a true sale of the Mortgage
Loans from the Company to the Purchaser and not a secured loan by the
Purchaser to the Company and, accordingly, the Mortgage Loans and the payments
and other collections thereon (other than those at any given time that may be
commingled with unrelated funds held by the Company) and the proceeds thereof
transferred to the Purchaser by the Company in accordance with the Company's
Warranties and Servicing Agreement would not be deemed property of the
Company's estate for purposes of Section 541 of the Bankruptcy Code or be
subject to the automatic stay provisions of Section 362 of the Bankruptcy
Code.
The opinions above are subject to the following additional assumptions,
exceptions, qualifications and limitations:
A. I have assumed that all parties to the Seller's Warranties and
Servicing Agreement other than the Company have all requisite power and
authority to execute, deliver and perform their respective obligations under
each of the agreements to which they are parties, and that all of such
agreements have been duly authorized by all necessary corporate action on the
part of such parties, have been executed and delivered by such parties and
constitute the legal, valid and binding obligations of such parties.
B. My opinion is expressed in the paragraphs above are subject to the
qualifications that (i) the enforceability of the Seller's Warranties and
Servicing Agreement may
Xxx. X-0
be limited by the effect of laws relating to (1) bankruptcy, reorganization,
insolvency, moratorium or other similar laws nor or hereafter in effect
relating to creditors' rights generally, including, without limitation, the
effect of statutes regarding fraudulent conveyance or preferential transfers
and (2) general principles of equity upon the specific enforceability of any
of the remedies, covenants or other provisions of the Seller's Warranties and
Servicing Agreement and upon the availability of injunctive relief or other
equitable remedies and the application of principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law)
as such principles relate to, limit or affect the enforcement of creditors'
rights generally and the discretion of the court before which any proceeding
for such enforcement may be brought; and (ii) I express no opinion herein with
respect to the validity, legality, binding effect or enforceability of
provisions for indemnification in the Agreements to the extent such provisions
may be held to be unenforceable as contrary to public policy.
C. I have assumed, without independent check or certification, that
there are no agreements or understandings among the Company, the Purchaser and
any other party which would expand, modify or otherwise affect the terms of
the documents described herein or the respective rights or obligations of the
parties thereunder.
I am admitted to practice in the State of Virginia and the State of New
York and I render no opinion herein as to matters involving the laws of any
jurisdiction other than the State of Virginia and the State of New York and
the federal laws of the United States of America.
This opinion is given to you for your sole benefit, and no other person
or entity is entitled to rely hereon except that the purchaser or purchasers
to which you initially and directly resell the Mortgage Loans may rely on this
opinion as if it were addressed to them as of its date.
Sincerely,
Exh. D-4
EXHIBIT E
ITEMS TO BE INCLUDED IN MONTHLY REMITTANCE ADVICE
On each Closing Date, the Company shall deliver to the Purchaser an
initial set-up report (the "Initial Set-up Report"), dated as of the related
Cut-off Date, which shall set forth certain information regarding the related
Mortgage Pool. Such information shall include, without limitation, the
principal balance of each Mortgage Loan, the interest rate, delinquency status
and any other information requested by the Purchaser. For each month after
each Closing Date, the Company shall provide a monthly remittance advice
report (the "Monthly Remittance Advice Reports") to the Purchaser, which shall
set forth for each related Mortgage Loan, the trial balance, interest rate,
delinquency, foreclosure and related default information, and such other
information as may be requested by the Purchaser. The Initial Set-up Report
and the Monthly Remittance Advice Reports will be delivered in an Excel format
or in such other electronic format as agreed to by the parties. Each Initial
Set-up Report and Monthly Remittance Advice Report shall contain only such
information as is readily available to the Company and is mutually agreed to
by Company and the Purchaser.
E-1
EXHIBIT F
FORM OF ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT
ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT made this _____ day of
__________________, 200_, among [ ], a __________________________ (the
"Servicer"), _________________________ a ________________________ (the
"Assignee"), and _____________________________, a _______________________ (the
"Assignor").
WHEREAS, Xxxxxxx Xxxxx Mortgage Company and the Servicer have entered
into a certain Amended and Restated Flow Seller's Warranties and Servicing
Agreement dated as of December 1, 2005 (the "Servicing Agreement"), pursuant
to which the Servicer sold certain mortgage loans listed on the mortgage loan
schedule attached as an exhibit to the Servicing Agreement;
WHEREAS, the Assignee has agreed on certain terms and conditions to
purchase from the Assignor certain mortgage loans (the "Mortgage Loans"),
which Mortgage Loans are subject to the provisions of the Servicing Agreement
and are listed on the mortgage loan schedule attached as Exhibit 1 hereto (the
"Mortgage Loan Schedule");
WHEREAS, pursuant to a Trust Agreement, dated as of [______ __], 200__
(the "Trust Agreement"), between GS Mortgage Securities Corp., as Depositor,
and [______], as Trustee (the "Trustee"), the Assignee will transfer the
Mortgage Loans to the Trustee, together with the Assignee's rights in the Sale
and Servicing Agreement;
NOW THEREFORE, in consideration of the mutual promises contained herein
and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:
1. Assignment and Assumption.
(a) The Assignor hereby assigns to the Assignee all of its right,
title and interest in and to the Mortgage Loans and Servicing Agreement,
to the extent relating to the Mortgage Loans (other than the rights of
the Assignor to indemnification thereunder), and the Assignee hereby
assumes all of the Assignor's obligations under the Servicing Agreement,
to the extent relating to the Mortgage Loans from and after the date
hereof, and the Servicer hereby acknowledges such assignment and
assumption and hereby agrees to the release of the Assignor from any
obligations under the Servicing Agreement from and after the date
hereof, to the extent relating to the Mortgage Loans. Notwithstanding
the foregoing, it is understood that the Assignor is not released from
liability for any breaches of the representations and warranties made in
Section 3.6 of the Servicing Agreement, and the Assignee is not
undertaking any such liability hereunder.
(b) The Assignor represents and warrants to the Assignee that the
Assignor has not taken any action which would serve to impair or
encumber the
F-1
Assignor's ownership interest in the Mortgage Loans since the date of
the Servicing Agreement.
(c) The Servicer and the Assignor shall have the right to amend,
modify or terminate the Servicing Agreement without the joinder of the
Assignee with respect to mortgage loans not conveyed to the Assignee
hereunder, provided, however, that such amendment, modification or
termination shall not affect or be binding on the Assignee.
2. Accuracy of Servicing Agreement.
The Servicer and the Assignor represent and warrant to the Assignee that
(i) attached hereto as Exhibit 2 is a true, accurate and complete copy of the
Servicing Agreement, (ii) the Servicing Agreement is in full force and effect
as of the date hereof, (iii) the Servicing Agreement has not been amended or
modified in any respect and (iv) no notice of termination has been given to
the Servicer under the Servicing Agreement.
3. Recognition of Purchaser.
From and after the date hereof, the Servicer shall note the transfer of
the Mortgage Loans to the Assignee in its books and records, shall recognize
the Assignee as the owner of the Mortgage Loans and shall service the Mortgage
Loans for the benefit of the Assignee pursuant to the Servicing Agreement, the
terms of which are incorporated herein by reference. It is the intention of
the Assignor, Servicer and Assignee that the Servicing Agreement shall be
binding upon and inure to the benefit of the Servicer and the Assignee and
their successors and assigns.
4. Representations and Warranties of the Assignee. The Assignee hereby
represents and warrants to the Assignor as follows:
(a) Decision to Purchase. The Assignee represents and warrants
that it is a sophisticated investor able to evaluate the risks and
merits of the transactions contemplated hereby, and that it has not
relied in connection therewith upon any statements or representations of
the Assignor or the Servicer other than those contained in the Servicing
Agreement or this Agreement.
(b) Authority. The Assignee hereto represents and warrants that it
is duly and legally authorized to enter into this Agreement and to
perform its obligations hereunder and under the Servicing Agreement.
(c) Enforceability. The Assignee hereto represents and warrants
that this Agreement has been duly authorized, executed and delivered by
it and (assuming due authorization, execution and delivery thereof by
each of the other parties hereto) constitutes its legal, valid and
binding obligation, enforceable in accordance with its terms, except as
such enforcement may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of
creditors' rights generally and by general equitable principles
(regardless of whether such enforcement is considered in a proceeding in
equity or at law).
F-2
5. Representations and Warranties of the Assignor. The Assignor hereby
represents and warrants to the Assignee as follows:
(a) The Assignor has been duly organized and is validly existing
as a limited partnership in good standing under the laws of the State of
New York with full power and authority (corporate and other) to enter
into and perform its obligations under the Servicing Agreement and this
Assignment Agreement.
(b) This Assignment Agreement has been duly executed and delivered
by the Assignor, and, assuming due authorization, execution and delivery
by each of the other parties hereto, constitutes a legal, valid, and
binding agreement of the Assignor, enforceable against it in accordance
with its terms, subject to bankruptcy, insolvency, reorganization,
moratorium, or other similar laws affecting creditors' rights generally
and to general principles of equity regardless of whether enforcement is
sought in a proceeding in equity or at law.
(c) The execution, delivery and performance by the Assignor of
this Assignment Agreement and the consummation of the transactions
contemplated thereby do not require the consent or approval of, the
giving of notice to, the registration with, or the taking of any other
action in respect of, any state, federal or other governmental authority
or agency, except such as has been obtained, given, effected or taken
prior to the date thereof.
(d) The execution and delivery of this Assignment Agreement have
been duly authorized by all necessary corporate action on the part of
the Assignor; neither the execution and delivery by the Assignor of this
Assignment Agreement, nor the consummation by the Assignor of the
transactions therein contemplated, nor compliance by the Assignor with
the provisions thereof, will conflict with or result in a breach of, or
constitute a default under, any of the provisions of the governing
documents of the Assignor or any law, governmental rule or regulation or
any material judgment, decree or order binding on the Assignor or any of
its properties, or any of the provisions of any material indenture,
mortgage, deed of trust, contract or other instrument to which the
Assignor is a party or by which it is bound.
(e) There are no actions, suits or proceedings pending or, to the
knowledge of the Assignor, threatened, before or by any court,
administrative agency, arbitrator or governmental body (A) with respect
to any of the transactions contemplated by this Assignment Agreement or
(B) with respect to any other matter that in the judgment of the
Assignor will be determined adversely to the Assignor and will if
determined adversely to the Assignor materially adversely affect its
ability to perform its obligations under this Assignment Agreement.
(f) Except for the sale to the Assignee, the Assignor has not
assigned or pledged any Mortgage Note or the related Mortgage or any
interest or participation therein.
F-3
(g) The Assignor has not satisfied, canceled, or subordinated in
whole or in part, or rescinded the Mortgage, and the Assignor has not
released the Mortgaged Property from the lien of the Mortgage, in whole
or in part, nor has the Assignor executed an instrument that would
effect any such release, cancellation, subordination, or rescission. The
Assignor has not released any Mortgagor, in whole or in part, except in
connection with an assumption agreement or other agreement approved by
the related Federal Insurer, to the extent such approval was required.
It is understood and agreed that the representations and warranties set
forth in this Section 5 shall survive delivery of the respective Mortgage
Files to the Custodian and shall inure to the benefit of the Assignee and its
assigns notwithstanding any restrictive or qualified endorsement or
assignment. Upon the discovery by the Assignor or the Assignee and its assigns
of a breach of the foregoing representations and warranties, the party
discovering such breach shall give prompt written notice to the other parties
to this Assignment Agreement, and in no event later than two (2) Business Days
from the date of such discovery. It is understood and agreed that the
obligations of the Assignor set forth in Section 6 to repurchase a Mortgage
Loan constitute the sole remedies available to the Assignee and its assigns on
their behalf respecting a breach of the representations and warranties
contained in this Section 5. It is further understood and agreed that the
Assignor shall be deemed not to have made the representations and warranties
in this Section 5 with respect to, and to the extent of, representations and
warranties made, as to the matters covered in this Section 5, by the Servicer
in the Servicing Agreement (or any officer's certificate delivered pursuant
thereto).
It is understood and agreed that the Assignor has made no
representations or warranties to the Assignee other than those contained in
this Section 5, and no other affiliate of the Assignor has made any
representations or warranties of any kind to the Assignee.
6. Repurchase of Mortgage Loans.
Upon discovery or notice of any breach by the Assignor of any
representation, warranty, or covenant under this Assignment Agreement that
materially and adversely affects the value of any Mortgage Loan or the
interest of the Assignee therein (it being understood that any such defect or
breach shall be deemed to have materially and adversely affected the value of
the related Mortgage Loan or the interest of the Assignee therein if the
Assignee incurs a loss as a result of such defect or breach), the Assignee
promptly shall request that the Assignor cure such breach and, if the Assignor
does not cure such breach in all material respects within 60 days from the
date on which it is notified of the breach, the Assignee may enforce the
Assignor's obligation hereunder to purchase such Mortgage Loan from the
Assignee. Notwithstanding the foregoing, however, if such breach is a
Qualification Defect, such cure or repurchase must take place within 75 days
of the Defect Discovery Date.
In the event the Servicer has breached a representation or warranty
under the Servicing Agreement that is substantially identical to a
representation or warranty breached by the Assignor hereunder, the Assignee
shall first proceed against the Servicer. If the Servicer does not within 60
days after notification of the breach, take steps to cure such breach (which
may include certifying to progress made and requesting an extension of the
time to cure such breach, as permitted under the Servicing Agreement) or
purchase, or substitute for the Mortgage
F-4
Loan, the Trustee shall be entitled to enforce the obligations of the Assignor
hereunder to cure such breach or to purchase the Mortgage Loan from the Trust.
In such event, the Assignor shall succeed to the rights of the Assignee to
enforce the obligations of the Servicer to cure such breach or repurchase such
Mortgage Loan under the terms of the related Servicing Agreement with respect
to such Mortgage Loan
Except as specifically set forth herein, the Assignee shall have no
responsibility to enforce any provision of this Assignment Agreement, to
oversee compliance hereof, or to take notice of any breach or default thereof.
7. Continuing Effect.
Except as contemplated hereby, the Servicing Agreement shall remain in
full force and effect in accordance with its terms.
8. Governing Law.
THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS HEREUNDER SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK.
9. Notices.
Any notices or other communications permitted or required hereunder or
under the Servicing Agreement shall be in writing and shall be deemed
conclusively to have been given if personally delivered at or mailed by
registered mail, postage prepaid, and return receipt requested or transmitted
by telex, telegraph or telecopier and confirmed by a similar mailed writing,
to: (i) in the case of the Servicer, [______________________,
_____________________] or such address as may hereafter be furnished by the
Servicer; (ii) in the case of the Assignee, _________________,
_________________, Attention: ________________________, or such other address
as may hereafter be furnished by the Assignee, and (iii) in the case of the
Assignor, __________________, Attention: _________________, or such other
address as may hereafter be furnished by the Assignor.
10. Counterparts.
This Agreement may be executed in counterparts, each of which when so
executed shall be deemed to be an original and all of which when taken
together shall constitute one and the same instrument.
11. Definitions.
Any capitalized term used but not defined in this Agreement has the same
meaning as in the Servicing Agreement.
F-5
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the
day and year first above written.
ASSIGNEE:
By: _________________________________
Name:
Title:
ASSIGNOR:
By: _________________________________
Name:
Title:
Acknowledged by:
SERVICER:
By: ____________________________
Name:
Title:
F-6
EXHIBIT G
FORM OF SELLER'S OFFICER'S CERTIFICATE
I, ______________________, hereby certify that I am a duly elected [Vice
President] of _____________________________, a corporation organized under the
laws of the State of _________ (the "Company") and further as follows:
1. Attached hereto as Exhibit 1 is a true, correct and complete copy of
the Articles of Incorporation of the Company which is in full force and effect
on the date hereof.
2. Attached hereto as Exhibit 2 is a true, correct and complete copy of
the by-laws of the Company which are in effect on the date hereof.
3. The execution and delivery by the Company of the Amended and Restated
Flow Seller's Warranties and Servicing Agreement, dated as of December 1, 2005
(the "Sale and Servicing Agreement") and the Custodial Agreement , dated as of
[ ], 2004 (the "Custodial Agreement" and, together with the Sale and Servicing
Agreement, the "Agreements") are in the ordinary course of business of the
Company.
4. A true and correct copy of the resolutions of the board of directors
of the Company that approve, authorize and direct the Company to enter into
the Agreements are attached hereto as Exhibit 3.
5. Each person who, as an officer or representative of the Company,
signed (a) the Sale and Servicing Agreement, or (b) any other document
delivered prior hereto or on the date hereof in connection with any
transaction described in the Agreements was, at the respective times of such
signing and delivery a duly elected or appointed, qualified and acting officer
or representative of the Company, who holds the office set forth opposite his
or her name on Exhibit 4, and the signatures of such persons appearing on such
documents are their genuine signatures.
No proceedings for dissolution, merger, consolidation, liquidation,
conservatorship or receivership of the Company or for the sale of all or
substantially all of its assets is pending, or to my knowledge threatened, and
no such proceeding is contemplated by the Company.
G-1
IN WITNESS WHEREOF, I have hereunto signed my name and affixed the seal
of the Company.
Dated: By:____________________________
Title: Vice President
I, __________________ the Secretary of __________________________,
hereby certify that _______________________ is a duly elected and acting Vice
President of the Company and that the signature appearing above is his genuine
signature.
IN WITNESS WHEREOF, I have hereunto signed my name.
Dated: By:____________________________
Title: Secretary
G-2
EXHIBIT H
FORM OF ANNUAL CERTIFICATION
Re: The [ ] agreement dated as of [ ], 200[ ] (the "Agreement"), among
[IDENTIFY PARTIES]
------------------
I, ________________________________, the _______________________ of
[NAME OF COMPANY] (the "Company"), certify to [the Purchaser], [the
Depositor], and the [Master Servicer] [Securities Administrator] [Trustee],
and their officers, with the knowledge and intent that they will rely upon
this certification, that:
(1) I have reviewed the servicer compliance statement of the
Company provided in accordance with Item 1123 of Regulation AB (the
"Compliance Statement"), the report on assessment of the Company's
compliance with the servicing criteria set forth in Item 1122(d) of
Regulation AB (the "Servicing Criteria"), provided in accordance with
Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934, as
amended (the "Exchange Act") and Item 1122 of Regulation AB (the
"Servicing Assessment"), the registered public accounting firm's
attestation report provided in accordance with Rules 13a-18 and 15d-18
under the Exchange Act and Section 1122(b) of Regulation AB (the
"Attestation Report"), and all servicing reports, officer's certificates
and other information relating to the servicing of the Mortgage Loans by
the Company during 200[ ] that were delivered by the Company to the
[Depositor] [Master Servicer] [Securities Administrator] [Trustee]
pursuant to the Agreement (collectively, the "Company Servicing
Information");
(2) Based on my knowledge, the Company Servicing Information,
taken as a whole, does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements
made, in the light of the circumstances under which such statements were
made, not misleading with respect to the period of time covered by the
Company Servicing Information;
(3) Based on my knowledge, all of the Company Servicing
Information required to be provided by the Company under the Agreement
has been provided to the [Depositor] [Master Servicer] [Securities
Administrator] [Trustee];
(4) I am responsible for reviewing the activities performed by the
Company as servicer under the Agreement, and based on my knowledge and
the compliance review conducted in preparing the Compliance Statement
and except as disclosed in the Compliance Statement, the Servicing
Assessment or the Attestation Report, the Company has fulfilled its
obligations under the Agreement in all material respects; and
(5) The Compliance Statement required to be delivered by the
Company pursuant to the Agreement, and the Servicing Assessment and
Attestation Report required to be provided by the Company and by any
Subservicer or Subcontractor pursuant to the Agreement, have been
provided to the [Depositor] [Master Servicer]. Any material instances of
noncompliance described in such reports have been disclosed to the
Exh. H-1
[Depositor] [Master Servicer]. Any material instance of noncompliance
with the Servicing Criteria has been disclosed in such reports.
Date:_______________________________
By: ________________________________
Name:
Title:
Exh. H-2
EXHIBIT I
FORM OF WARRANTY XXXX OF SALE
On this _______ day of ________, 200__, SunTrust Mortgage, Inc.
("Seller") as the Seller under that certain Amended and Restated Flow Seller's
Warranties and Servicing Agreement, dated as of December 1, 2005 (the
"Agreement") does hereby sell, transfer, assign, set over and convey to
Xxxxxxx Sachs Mortgage Company as Purchaser under the Agreement, without
recourse, but subject to the terms of the Agreement, all rights, title and
interest of the Seller in and to the Mortgage Loans listed on the Mortgage
Loan Schedule attached hereto, together with the related Mortgage Files and
all rights and obligations arising under the documents contained therein.
Pursuant to Section 2.01 of the Agreement, the Seller has delivered to the
Purchaser or its custodian the Mortgage Loan Documents for each Mortgage Loan
to be purchased as set forth in the Agreement. The contents of each related
Servicing File required to be maintained and retained by the Seller to service
the Mortgage Loans pursuant to the Agreement and thus not delivered to the
Purchaser are and shall be held in trust by the Seller for the benefit of the
Purchaser as the owner thereof. The Seller's possession of any portion of each
such Servicing File is at the will of the Purchaser for the sole purpose of
facilitating servicing of the related Mortgage Loan pursuant to the Agreement,
and such retention and possession by the Seller shall be in a custodial
capacity only. The ownership of each Mortgage Note, Mortgage, and the contents
of the Mortgage File and Servicing File is vested in the Purchaser and the
ownership of all records and documents with respect to the related Mortgage
Loan prepared by or which come into the possession of the Seller shall
immediately vest in the Purchaser and shall be retained and maintained, in
trust, by the Seller at the will of the Purchaser in such custodial capacity
only.
The Seller confirms to the Purchaser that the representations and
warranties set forth in Sections 2.6, 3.1 and 3.2 of the Agreement are true
and correct as of the date hereof, and that all statements made in the
Sellers' Officer's Certificate and all attachments thereto remain complete,
true and correct in all respects as of the date hereof.
Capitalized terms used herein and not otherwise defined shall have the
meanings set forth in the Agreement.
SUNTRUST MORTGAGE, INC.
(Seller)
By: _______________________________
Name:
Title:
Exh. I-1
EXHIBIT J
COMPANY GUIDE
Exh. J-1
EXHIBIT K
SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE
The assessment of compliance to be delivered by [the Company] [Name of
Subservicer] shall address, at a minimum, the criteria identified as below as
"Applicable Servicing Criteria":
----------------------------------------------------------------------------------------------------------------------
Applicable
Servicing Criteria Servicing Criteria
----------------------------------------------------------------------------------------------------------------------
Reference Criteria
----------------------------------------------------------------------------------------------------------------------
General Servicing Considerations
----------------------------------------------------------------------------------------------------------------------
1122(d)(1)(i) Policies and procedures are instituted to monitor any performance
or other triggers and events of default in accordance with the
transaction agreements.
----------------------------------------------------------------------------------------------------------------------
1122(d)(1)(ii) If any material servicing activities are outsourced
to third parties, policies and procedures are
instituted to monitor the third party's performance
and compliance with such servicing activities.
----------------------------------------------------------------------------------------------------------------------
1122(d)(1)(iii) Any requirements in the transaction agreements to
maintain a back-up servicer for the mortgage loans
are maintained.
----------------------------------------------------------------------------------------------------------------------
1122(d)(1)(iv) A fidelity bond and errors and omissions policy is in effect on
the party participating in the servicing function throughout the
reporting period in the amount of coverage required by and
otherwise in accordance with the terms of the transaction
agreements.
----------------------------------------------------------------------------------------------------------------------
Cash Collection and Administration
----------------------------------------------------------------------------------------------------------------------
1122(d)(2)(i) Payments on mortgage loans are deposited into the appropriate
custodial bank accounts and related bank clearing accounts no more
than two business days following receipt, or such other number of
days specified in the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
1122(d)(2)(ii) Disbursements made via wire transfer on behalf of an
obligor or to an investor are made only by authorized
personnel.
----------------------------------------------------------------------------------------------------------------------
1122(d)(2)(iii) Advances of funds or guarantees regarding
collections, cash flows or distributions, and any
interest or other fees charged for such advances, are
made, reviewed and approved as specified in the
transaction agreements.
----------------------------------------------------------------------------------------------------------------------
Exh. K-1
----------------------------------------------------------------------------------------------------------------------
Applicable
Servicing Criteria Servicing Criteria
----------------------------------------------------------------------------------------------------------------------
Reference Criteria
----------------------------------------------------------------------------------------------------------------------
1122(d)(2)(iv) The related accounts for the transaction, such as
cash reserve accounts or accounts established as a
form of overcollateralization, are separately
maintained (e.g., with respect to commingling of
cash) as set forth in the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
1122(d)(2)(v) Each custodial account is maintained at a federally
insured depository institution as set forth in the
transaction agreements. For purposes of this
criterion, "federally insured depository institution"
with respect to a foreign financial institution means
a foreign financial institution that meets the
requirements of Rule 13k-1(b)(1) of the Securities
Exchange Act.
----------------------------------------------------------------------------------------------------------------------
1122(d)(2)(vi) Unissued checks are safeguarded so as to prevent unauthorized
access.
----------------------------------------------------------------------------------------------------------------------
1122(d)(2)(vii) Reconciliations are prepared on a monthly basis for
all asset-backed securities related bank accounts,
including custodial accounts and related bank
clearing accounts. These reconciliations are (A)
mathematically accurate; (B) prepared within 30
calendar days after the bank statement cutoff date,
or such other number of days specified in the
transaction agreements; (C) reviewed and approved by
someone other than the person who prepared the
reconciliation; and (D) contain explanations for
reconciling items. These reconciling items are
resolved within 90 calendar days of their original
identification, or such other number of days
specified in the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
Investor Remittances and Reporting
----------------------------------------------------------------------------------------------------------------------
1122(d)(3)(i) Reports to investors, including those to be filed
with the Commission, are maintained in accordance
with the transaction agreements and applicable
Commission requirements. Specifically, such reports
(A) are prepared in accordance with timeframes and
other terms set forth in the transaction agreements;
(B) provide information calculated in accordance with
the terms specified in the transaction agreements;
(C) are filed with the Commission as required by its
rules and regulations; and (D) agree with investors'
or the trustee's records as to the total unpaid
principal balance and number of mortgage loans
serviced by the Servicer.
----------------------------------------------------------------------------------------------------------------------
Exh. K-2
----------------------------------------------------------------------------------------------------------------------
Applicable
Servicing Criteria Servicing Criteria
----------------------------------------------------------------------------------------------------------------------
Reference Criteria
----------------------------------------------------------------------------------------------------------------------
1122(d)(3)(ii) Amounts due to investors are allocated and remitted in accordance
with timeframes, distribution priority and other terms set forth
in the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
1122(d)(3)(iii) Disbursements made to an investor are posted within
two business days to the Servicer's investor records,
or such other number of days specified in the
transaction agreements.
----------------------------------------------------------------------------------------------------------------------
1122(d)(3)(iv) Amounts remitted to investors per the investor reports agree with
cancelled checks, or other form of payment, or custodial bank
statements.
----------------------------------------------------------------------------------------------------------------------
Pool Asset Administration
----------------------------------------------------------------------------------------------------------------------
1122(d)(4)(i) Collateral or security on mortgage loans is
maintained as required by the transaction agreements
or related mortgage loan documents.
----------------------------------------------------------------------------------------------------------------------
1122(d)(4)(ii) Mortgage loan and related documents are safeguarded as required by
the transaction agreements
----------------------------------------------------------------------------------------------------------------------
1122(d)(4)(iii) Any additions, removals or substitutions to the asset
pool are made, reviewed and approved in accordance
with any conditions or requirements in the
transaction agreements.
----------------------------------------------------------------------------------------------------------------------
1122(d)(4)(iv) Payments on mortgage loans, including any payoffs,
made in accordance with the related mortgage loan
documents are posted to the Servicer's obligor
records maintained no more than two business days
after receipt, or such other number of days specified
in the transaction agreements, and allocated to
principal, interest or other items (e.g., escrow) in
accordance with the related mortgage loan documents.
----------------------------------------------------------------------------------------------------------------------
1122(d)(4)(v) The Servicer's records regarding the mortgage loans
agree with the Servicer's records with respect to an
obligor's unpaid principal balance.
----------------------------------------------------------------------------------------------------------------------
1122(d)(4)(vi) Changes with respect to the terms or status of an
obligor's mortgage loans (e.g., loan modifications or
re-agings) are made, reviewed and approved by
authorized personnel in accordance with the
transaction agreements and related pool asset
documents.
----------------------------------------------------------------------------------------------------------------------
Exh. K-3
----------------------------------------------------------------------------------------------------------------------
Applicable
Servicing Criteria Servicing Criteria
----------------------------------------------------------------------------------------------------------------------
Reference Criteria
----------------------------------------------------------------------------------------------------------------------
1122(d)(4)(vii) Loss mitigation or recovery actions (e.g.,
forbearance plans, modifications and deeds in lieu of
foreclosure, foreclosures and repossessions, as
applicable) are initiated, conducted and concluded in
accordance with the timeframes or other requirements
established by the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
1122(d)(4)(viii) Records documenting collection efforts are maintained
during the period a mortgage loan is delinquent in
accordance with the transaction agreements. Such
records are maintained on at least a monthly basis,
or such other period specified in the transaction
agreements, and describe the entity's activities in
monitoring delinquent mortgage loans including, for
example, phone calls, letters and payment
rescheduling plans in cases where delinquency is
deemed temporary (e.g., illness or unemployment).
----------------------------------------------------------------------------------------------------------------------
1122(d)(4)(ix) Adjustments to interest rates or rates of return for mortgage
loans with variable rates are computed based on the related
mortgage loan documents.
----------------------------------------------------------------------------------------------------------------------
1122(d)(4)(x) Regarding any funds held in trust for an obligor
(such as escrow accounts): (A) such funds are
analyzed, in accordance with the obligor's mortgage
loan documents, on at least an annual basis, or such
other period specified in the transaction agreements;
(B) interest on such funds is paid, or credited, to
obligors in accordance with applicable mortgage loan
documents and state laws; and (C) such funds are
returned to the obligor within 30 calendar days of
full repayment of the related mortgage loans, or such
other number of days specified in the transaction
agreements.
----------------------------------------------------------------------------------------------------------------------
1122(d)(4)(xi) Payments made on behalf of an obligor (such as tax or
insurance payments) are made on or before the related
penalty or expiration dates, as indicated on the
appropriate bills or notices for such payments,
provided that such support has been received by the
servicer at least 30 calendar days prior to these
dates, or such other number of days specified in the
transaction agreements.
----------------------------------------------------------------------------------------------------------------------
1122(d)(4)(xii) Any late payment penalties in connection with any payment to be
made on behalf of an obligor are paid from the servicer's funds
and not charged to the obligor, unless the late payment was due to
the obligor's error or omission.
----------------------------------------------------------------------------------------------------------------------
Exh. K-4
----------------------------------------------------------------------------------------------------------------------
Applicable
Servicing Criteria Servicing Criteria
----------------------------------------------------------------------------------------------------------------------
Reference Criteria
----------------------------------------------------------------------------------------------------------------------
1122(d)(4)(xiii) Disbursements made on behalf of an obligor are posted
within two business days to the obligor's records
maintained by the servicer, or such other number of
days specified in the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
1122(d)(4)(xiv) Delinquencies, charge-offs and uncollectible accounts are
recognized and recorded in accordance with the transaction
agreements.
----------------------------------------------------------------------------------------------------------------------
1122(d)(4)(xv) Any external enhancement or other support, identified in Item
1114(a)(1) through (3) or Item 1115 of Regulation AB, is
maintained as set forth in the transaction agreements.
----------------------------------------------------------------------------------------------------------------------
[NAME OF COMPANY] [NAME OF SUBSERVICER]
Date:___________________________________
By: ____________________________________
Name:
Title:
Exh. K-5
EXHIBIT L
COMPANY'S STATIC POOL INFORMATION DATA
[GRAPHIC OMITTED][GRAPHIC OMITTED]
Xxx. X-0
