STRUCTURED ASSET SECURITIES CORPORATION, Depositor Servicer Mortgage Loan Seller, Master Servicer, Securities Administrator and Custodian and Trustee
Form
of Pooling and Servicing Agreement
For
HELOC Certificate Transactions
STRUCTURED
ASSET SECURITIES CORPORATION,
Depositor
[
],
Servicer
[
],
Mortgage
Loan Seller,
[
],
Master
Servicer, Securities Administrator and Custodian
and
[
],
Trustee
Dated
as
of [ ]
STRUCTURED
ASSET SECURITIES CORPORATION TRUST
[ ]
MORTGAGE
PASS-THROUGH CERTIFICATES,
SERIES [ ]
TABLE
OF
CONTENTS
|
Page
|
||
|
ARTICLE
I
|
||
|
DEFINITIONS
|
||
|
ARTICLE
II
|
||
|
CONVEYANCE
OF MORTGAGE LOANS;
REPRESENTATIONS
AND WARRANTIES
|
||
|
Section
2.01
|
Conveyance
of Mortgage Loans
|
46
|
|
Section
2.02
|
Acceptance
by the Trustee of the Mortgage Loans
|
45
|
|
Section
2.03
|
Representations,
Warranties and Covenants of the Mortgage Loan Seller and the Servicer;
Remedies for Breaches of Representations and Warranties with Respect
to
the Mortgage Loans
|
46
|
|
Section
2.04
|
Execution
and Delivery of Certificates
|
50
|
|
Section
2.05
|
REMIC
Matters
|
50
|
|
Section
2.06
|
Representations
and Warranties of the Depositor
|
50
|
|
ARTICLE
III
|
||
|
ADMINISTRATION
AND SERVICING
OF
MORTGAGE LOANS
|
||
|
Section
3.01
|
Servicer
to Service Mortgage Loans
|
52
|
|
Section
3.02
|
Subservicing
Agreements between Servicer and Subservicers; Use of
Subcontractors
|
53
|
|
Section
3.03
|
Successor
Subservicers
|
55
|
|
Section
3.04
|
Liability
of the Servicer
|
55
|
|
Section
3.05
|
No
Contractual Relationship between Subservicers and the Master
Servicer
|
60
|
|
Section
3.06
|
Assumption
or Termination of Subservicing Agreements by Master
Servicer
|
56
|
|
Section
3.07
|
Collection
of Certain Mortgage Loan Payments
|
56
|
|
Section
3.08
|
Subservicing
Accounts
|
59
|
|
Section
3.09
|
Collection
of Taxes, Assessments and Similar Items; Escrow Accounts
|
60
|
|
Section
3.10
|
Collection
Account
|
61
|
|
Section
3.11
|
Withdrawals
from the Collection Account
|
62
|
|
Section
3.12
|
Investment
of Funds in the Collection Account, Escrow Accounts and the Distribution
Account
|
63
|
|
Section
3.13
|
Maintenance
of Hazard Insurance and Errors and Omissions and Fidelity
Coverage
|
65
|
|
Section
3.14
|
Enforcement
of Due-On-Sale Clauses; Assumption Agreements
|
66
|
-i-
|
Section
3.15
|
Realization
upon Defaulted Mortgage Loans
|
67
|
|
Section
3.16
|
Release
of Mortgage Files
|
68
|
|
Section
3.17
|
Title,
Conservation and Disposition of REO Property
|
69
|
|
Section
3.18
|
Notification
of Adjustments
|
71
|
|
Section
3.19
|
Access
to Certain Documentation and Information Regarding the Mortgage
Loans
|
71
|
|
Section
3.20
|
Documents,
Records and Funds in Possession of the Servicer to Be Held for the
Trustee
|
72
|
|
Section
3.21
|
Servicing
Compensation
|
72
|
|
Section
3.22
|
Report
on Assessment of Compliance with Applicable Servicing
Criteria.
|
73
|
|
Section
3.23
|
Report
on Attestation of Compliance with Applicable Servicing
Criteria.
|
738
|
|
Section
3.24
|
Annual
Officer’s Certificate.
|
748
|
|
Section
3.25
|
Master
Servicer to Act as Servicer
|
759
|
|
Section
3.26
|
Compensating
Interest
|
80
|
|
Section
3.27
|
Credit
Reporting; Xxxxx-Xxxxx-Xxxxxx Act
|
76
|
|
Section
3.28
|
Maintenance
of the Bulk PMI Policy.
|
80
|
|
Section
3.29
|
Notification
to Parties.
|
76
|
|
Section
3.30
|
Obligations
of the Custodian; Indemnification.
|
76
|
|
ARTICLE
IV
|
||
|
DISTRIBUTIONS
AND
ADVANCES
BY THE SERVICER
|
||
|
Section
4.01
|
Advances
|
77
|
|
Section
4.02
|
Priorities
of Distribution
|
79
|
|
Section
4.03
|
Monthly
Statements to Certificateholders
|
88
|
|
Section
4.04
|
Certain
Matters Relating to the Determination of LIBOR
|
87
|
|
Section
4.05
|
Allocation
of Applied Realized Loss Amounts
|
87
|
|
Section
4.06
|
Supplemental
Interest Trust.
|
92
|
|
Section
4.07
|
Rights
of the Swap Counterparty.
|
88
|
|
Section
4.08
|
Termination
Receipts.
|
89
|
|
ARTICLE
V
|
||
|
THE
CERTIFICATES
|
||
|
Section
5.01
|
The
Certificates
|
89
|
|
Section
5.02
|
Certificate
Register; Registration of Transfer and Exchange of
Certificates
|
95
|
|
Section
5.03
|
Mutilated,
Destroyed, Lost or Stolen Certificates
|
96
|
|
Section
5.04
|
Persons
Deemed Owners
|
97
|
|
Section
5.05
|
Access
to List of Certificateholders’ Names and Addresses
|
97
|
|
Section
5.06
|
Maintenance
of Office or Agency
|
97
|
-ii-
|
ARTICLE
VI
|
||
|
THE
DEPOSITOR AND THE SERVICER
|
||
|
Section
6.01
|
Respective
Liabilities of the Depositor and the Servicer
|
97
|
|
Section
6.02
|
Merger
or Consolidation of the Depositor or the Servicer
|
97
|
|
Section
6.03
|
Limitation
on Liability of the Depositor, the Servicer and Others.
|
98
|
|
Section
6.04
|
Limitation
on Resignation of the Servicer.
|
99
|
|
Section
6.05
|
Additional
Indemnification by the Servicer; Third Party Claims.
|
99
|
|
Section
6.06
|
Compliance
with Regulation AB; Cooperation of Parties
|
100
|
|
ARTICLE
VII
|
||
|
DEFAULT
|
||
|
Section
7.01
|
Events
of Default
|
100
|
|
Section
7.02
|
Master
Servicer to Act; Appointment of Successor
|
103
|
|
Section
7.03
|
Notification
to Certificateholders
|
104
|
|
ARTICLE
VIII
|
||
|
CONCERNING
THE TRUSTEE
|
||
|
Section
8.01
|
Duties
of the Trustee
|
105
|
|
Section
8.02
|
Certain
Matters Affecting the Trustee
|
105
|
|
Section
8.03
|
Trustee
Not Liable for Certificates or Mortgage Loans
|
107
|
|
Section
8.04
|
Trustee
May Own Certificates
|
107
|
|
Section
8.05
|
Trustee’s
Fees Indemnification and Expenses
|
107
|
|
Section
8.06
|
Eligibility
Requirements for the Trustee
|
108
|
|
Section
8.07
|
Resignation
and Removal of the Trustee
|
109
|
|
Section
8.08
|
Successor
Trustee
|
109
|
|
Section
8.09
|
Merger
or Consolidation of the Trustee
|
110
|
|
Section
8.10
|
Appointment
of Co-Trustee or Separate Trustee
|
110
|
|
Section
8.11
|
Tax
Matters
|
111
|
|
Section
8.12
|
Commission
Reporting
|
115
|
|
Section
8.13
|
Tax
Classification of the Excess Reserve Fund Account and the Supplemental
Interest Trust
|
120
|
|
ARTICLE
IX
|
||
|
ADMINISTRATION
OF THE MORTGAGE LOANS
BY
THE MASTER SERVICER
|
||
|
Section
9.01
|
Duties
of the Master Servicer; Enforcement of Servicer
Obligations.
|
121
|
|
Section
9.02
|
Assessment,
Attestation Annual Statement as to Compliance of the Master
Servicer
|
122
|
-iii-
|
Section
9.03
|
[Reserved]
|
122
|
|
Section
9.04
|
Maintenance
of Fidelity Bond and Errors and Omissions Insurance.
|
122
|
|
Section
9.05
|
Representations
and Warranties of the Master Servicer
|
122
|
|
Section
9.06
|
Master
Servicer Events of Default
|
124
|
|
Section
9.07
|
Waiver
of Default.
|
125
|
|
Section
9.08
|
Successor
to the Master Servicer.
|
126
|
|
Section
9.09
|
Compensation
of the Master Servicer.
|
127
|
|
Section
9.10
|
Merger
or Consolidation.
|
127
|
|
Section
9.11
|
Resignation
of the Master Servicer.
|
127
|
|
Section
9.12
|
Assignment
or Delegation of Duties by the Master Servicer.
|
127
|
|
Section
9.13
|
Limitation
on Liability of the Master Servicer.
|
128
|
|
Section
9.14
|
Indemnification;
Third Party Claims.
|
1283
|
|
ARTICLE
X
|
||
|
CONCERNING
THE SECURITIES ADMINISTRATOR
|
||
|
Section
10.01
|
Duties
of Securities Administrator.
|
134
|
|
Section
10.02
|
Certain
Matters Affecting the Securities Administrator.
|
130
|
|
Section
10.03
|
Securities
Administrator Not Liable for Certificates or Mortgage
Loans.
|
132
|
|
Section
10.04
|
Securities
Administrator May Own Certificates.
|
132
|
|
Section
10.05
|
Securities
Administrator’s Fees and Expenses.
|
133
|
|
Section
10.06
|
Eligibility
Requirements for Securities Administrator.
|
133
|
|
Section
10.07
|
Resignation
and Removal of Securities Administrator.
|
134
|
|
Section
10.08
|
Successor
Securities Administrator.
|
135
|
|
Section
10.09
|
Merger
or Consolidation of Securities Administrator.
|
135
|
|
Section
10.10
|
Assignment
or Delegation of Duties by the Securities Administrator.
|
136
|
|
Section
10.11
|
Attestation,
Annual Statement of Compliance of the Securities
Administrator
|
136
|
|
ARTICLE
XI
|
||
|
TERMINATION
|
||
|
Section
11.01
|
Termination
upon Liquidation or Purchase of the Mortgage Loans
|
136
|
|
Section
11.02
|
Final
Distribution on the Certificates
|
137
|
|
Section
11.03
|
Additional
Termination Requirements
|
143
|
|
ARTICLE
XII
|
||
|
MISCELLANEOUS
PROVISIONS
|
||
|
Section
12.01
|
Amendment
|
139
|
|
Section
12.02
|
Recordation
of Agreement; Counterparts
|
141
|
|
Section
12.03
|
Governing
Law
|
141
|
|
Section
12.04
|
Intention
of Parties
|
141
|
-iv-
|
Section
12.05
|
Notices
|
142
|
|
Section
12.06
|
Severability
of Provisions
|
143
|
|
Section
12.07
|
Assignment
|
144
|
|
Section
12.08
|
Limitation
on Rights of Certificateholders
|
144
|
|
Section
12.09
|
Inspection
and Audit Rights
|
144
|
|
Section
12.10
|
Certificates
Nonassessable and Fully Paid
|
145
|
|
Section
12.11
|
Rule of
Construction
|
145
|
|
Section
12.12
|
Waiver
of Jury Trial
|
145
|
-v-
SCHEDULES
|
Schedule I
|
Mortgage
Loan Schedule
|
|
Schedule II
|
Representations
and Warranties of
[ ]
|
|
Schedule III
|
Representations
and Warranties of the Mortgage Loan Seller as to Corporate
Matters
|
|
Schedule IV
|
Representations
and Warranties of the Mortgage Loan Seller with respect to the Individual
Mortgage Loans
|
|
EXHIBITS
|
|
|
Exhibit A
|
Form
of Certificates
|
|
Exhibit B
|
Form
of Certificates
|
|
Exhibit C
|
Form
of Certificates
|
|
Exhibit D
|
Form
of Certificates
|
|
Exhibit E
|
Form
of Initial Certification of Custodian
|
|
Exhibit F
|
Form
of Document Certification and Exception Report of
Custodian
|
|
Exhibit G
|
Form
of Residual Transfer Affidavit
|
|
Exhibit H
|
Form
of Transferor Certificate
|
|
Exhibit I
|
Form
of Rule 144A Letter
|
|
Exhibit J
|
Form
of Request for Release
|
|
Exhibit K
|
Form
of Contents for Each Mortgage File
|
|
Exhibit L
|
Form
of Xxxxxxxx-Xxxxx Certification to be Provided by Master Servicer
(or
other Certification Party) with Form 10-K
|
|
Exhibit M
|
Form
of Servicer (or Servicing Function Participant) Back-Up
Certification
|
|
Exhibit
N-1
|
Form
of Monthly Remittance Advice
|
|
Exhibit
N-2
|
Standard
Layout for Monthly Defaulted Loan Report
|
|
Exhibit
N-3
|
Form
332 Realized Loss Report
|
|
Exhibit
O
|
Form
of Swap Agreement
|
-vi-
|
Exhibit
P
|
[Reserved]
|
|
Exhibit
Q
|
Master
Mortgage Loan Purchase and Servicing Agreement
|
|
Exhibit
R
|
[Reserved]
|
|
Exhibit
S
|
Form
of Certification Regarding Servicing Criteria to be Addressed in
Report by
each Servicing Function Participant providing an Assessment of
Compliance
|
|
Exhibit
T
|
[Reserved]
|
|
Exhibit
U
|
Form
of Annual Compliance Certificate
|
|
Exhibit
V
|
Additional
Form 10-D Disclosure
|
|
Exhibit
W
|
Additional
Form 10-K Disclosure
|
|
Exhibit
X
|
Form
8-K Disclosure Information
|
-vii-
[The
provisions of the Pooling and Servicing Agreement for each series will be
modified as applicable.]
THIS
POOLING AND SERVICING AGREEMENT, dated as of [ ], among
STRUCTURED ASSET SECURITIES CORPORATION, as depositor (the “Depositor),
[ ], a [ ], as servicer (the “Servicer”),
[ ], as mortgage loan seller (the “Mortgage
Loan Seller”),
[ ], a [ ], as master servicer (in such
capacity, the “Master
Servicer”)
as
securities administrator (in such capacity, the “Securities
Administrator”)
and as
custodian (in such capacity, “the Custodian”),
and
[ ], a [ ], as trustee (the “Trustee”).
WITNESSETH:
In
consideration of the mutual agreements herein contained, the parties hereto
agree as follows:
PRELIMINARY
STATEMENT
The
Securities Administrator on behalf of the Trust shall elect that [two]
segregated asset pools within the Trust Fund be treated for federal income
tax
purposes as comprising [two] REMICs (each, a “REMIC”
or,
in
the alternative, the [Lower Tier] REMIC and the [Upper Tier] REMIC,
respectively). Each Class of Certificates (other than the Class [P]
and Class [R] Certificates), other than the right of each Class of
LIBOR Certificates to receive Basis Risk Carryover Amounts and the right of
the
Class [X] Certificates to receive payments from [the Cap Agreements],
represents ownership of a regular interest in the [Upper Tier] REMIC for
purposes of the REMIC Provisions. The Class [R] Certificate represents
ownership of the sole Class of residual interest in each of the [Lower Tier]
REMIC and the [Upper Tier] REMIC for purposes of the REMIC Provisions. The
Startup Day for each REMIC described herein is the Closing Date. The latest
possible maturity date for each Certificate is the latest date referenced in
Section 2.05. The [Upper Tier] REMIC shall hold as assets the several
Classes of uncertificated [Lower Tier] REMIC Regular Interests, set out below.
Each such [Lower Tier] REMIC Regular Interest is hereby designated as a regular
interest in the [Lower Tier] REMIC. The Class [P] Certificates represent
beneficial ownership of the Prepayment Charges, each Class of LIBOR
Certificates [and the Class [ ] Certificates] represents
beneficial ownership of a regular interest in the [Upper Tier] REMIC, and the
right to receive Basis Risk Carryover Amounts in the case of the LIBOR
Certificates, and the Class [X] Certificates represent beneficial ownership
of a
regular interest in the [Upper Tier] REMIC, [the Excess Reserve Fund Account]
and [the Cap Agreements].
[Lower
Tier] REMIC
|
[Lower
Tier]
REMIC Class Designation
|
[Lower
Tier]
REMIC Interest Rate |
Initial
[Lower Tier]
REMIC
Principal Amount
|
Corresponding
[Upper Tier] REMIC Regular Interest |
|
Class [ ]
|
(1)
|
[ ]
|
[ ]
|
|
Class [ ]
|
(1)
|
[ ]
|
[ ]
|
|
Class [ ]-
[Group I]
|
(2)
|
[ ]
|
N/A
|
|
Class [ ]-[Group II]
|
(3)
|
[ ]
|
N/A
|
|
Class [ ]-[R]
|
(4)
|
(4)
|
N/A
|
______________________________
|
(1)
|
The
interest rate with respect to any Distribution Date for these interests
is
a per annum variable rate equal to the [Lower-Tier] REMIC WAC
Cap.
|
|
(2)
|
The
interest rate with respect to any Distribution Date for the
Class [ ]-[Group I] Interest is a per annum
variable rate (expressed as a percentage rounded to eight decimal
places)
equal to the [Group I] Available Funds
Cap.
|
|
(3)
|
The
interest rate with respect to any Distribution Date for the
Class [ ]-[Group II] Interest is a per annum
variable rate (expressed as a percentage rounded to eight decimal
places)
equal to the [Group II] Available Funds
Cap.
|
|
(4)
|
The
Class [ ]-[R] Interest is the sole Class of residual
interest in the [Lower Tier] REMIC and it does not have a principal
amount
or an interest rate.
|
The
[Lower Tier] REMIC shall hold as assets all of the assets included in the Trust
Fund other than Prepayment Charges, [the Cap Agreements], [the Excess Reserve
Fund Account], [the Pre-Funding Account], [the Capitalized Interest Account],
and [the Lower Tier REMIC Regular Interests].
The
Class LT-[ ], Class LT-[ ] and
Class LT-[ ] Interests are hereby designated the [LT
Accretion Directed Classes] (the “[LT
Accretion Directed Classes]”).
On
each Distribution Date, [ ]% of the increase in the
Overcollateralization Amount will be payable as a reduction of the [Lower-Tier]
REMIC Principal Amount of the [LT Accretion Directed Classes] (each such
Class will be reduced by an amount equal to [ ]% of any
increase in the Overcollateralization Amount that is attributable to a reduction
in the Class Certificate Balance of its Corresponding Class) and will be
accrued and added to the [Lower-Tier] REMIC Principal Amount of the
[Class LT-Accrual Interest]. On each Distribution Date, the increase in the
[Lower-Tier] REMIC Principal Amount of the [Class LT-Accrual Interest] may
not exceed interest accruals for such Distribution Date for the
[Class LT-Accrual Interest]. All payments of scheduled principal and
prepayments of principal generated by the Mortgage Loans and all Subsequent
Recoveries allocable to principal shall be allocated
(i) [ ]% to the [Class LT-Accrual Interest],
(ii) [ ]% to the [LT Accretion Directed Classes]
(such principal payments and Subsequent Recoveries shall be allocated among
such
[LT Accretion Directed Classes] in an amount equal to [ ]%
of the principal amounts allocated to their respective Corresponding Classes),
until paid in full and (iii) [ ]% to
-2-
Class LT-[Group I(SUB)
Interest], Class LT-[Group I Interest],
Class LT-[Group II(SUB) Interest], Class LT-[Group II
Interest] and Class LT-[XX Interest] (and further allocated among these
[Lower-Tier] REMIC Regular Interests in the manner described in the next
sentence). As among the Class LT-[Group I(SUB) Interest],
Class LT-[Group I Interest], Class LT-[Group II(SUB)
Interest], Class LT-[Group II Interest] and Class LT-[XX
Interest], all payments of scheduled principal and prepayments of principal
generated by the Mortgage Loans and Subsequent Recoveries referred to in
clause (iii) of the previous sentence shall be allocated
(i) first, to the Class LT-[Group I(SUB) Interest], and
Class LT-[Group II(SUB) Interest], each from the related Loan Group,
so that their respective [Lower-Tier] REMIC Principal Amount (computed to at
least eight decimal places) is equal to [ ]% of the related
Group Subordinate Amount (except that if any such amount is a larger number
than in the preceding distribution period, the least amount of principal shall
be distributed to the Class LT-[Group I(SUB) Interest] and
Class LT-[Group II(SUB) Interest], as applicable, such that the [Lower
Tier] REMIC Subordinate Balance Ratio is maintained); (ii) second, to the
Class LT-[Group I Interest] and the Class LT-[Group II
Interest] [ ]% of the principal collected in respect of the
related Loan Group; and (iii) third, any remaining amounts of principal
shall be distributed to the Class LT-[XX Interest]. Notwithstanding the
above, principal payments allocated to the Class [X] Interest that result
in the reduction in the Overcollateralization Amount shall be allocated
(i) [ ]% to the Class [LT-Accrual Interest] (until
paid in full) and (ii) [ ]% to the
Class LT-[Group I(SUB) Interest], the
Class LT-[Group II(SUB) Interest], the Class LT-[Group I
Interest], the Class LT-[Group II Interest] and the Class LT-[XX
Interest] (and allocated among these [Lower-Tier] REMIC Regular Interests in
a
manner similar to that described in the immediately preceding sentence).
Reductions
to [Lower-Tier] REMIC Principal Amounts as a result of Realized Losses and
increases in [Lower-Tier] REMIC Principal Amounts as a result of Subsequent
Recoveries shall be applied so that after all distributions have been made
on
each Distribution Date (i) the [Lower Tier] REMIC Principal Amount of each
[LT Accretion Directed Class] is equal to [ ]% of the
Class Certificate Balance of its Corresponding Class, (ii) the
[Class LT-Accrual Interest] is equal to [ ]% of the
aggregate Stated Principal Balance of the Mortgage Loans plus
[ ]% of the Overcollateralization Amount, (iii) the
Class LT-[Group I(SUB) Interest] is equal to [ ]% of
the Group Subordinate Amount of the [Group I] Mortgage Loans,
(iv) the Class LT-[Group II(SUB) Interest] is equal to
[ ]% of the Group Overcollateralization Amount of the
[Group II] Mortgage Loans, (v) the Class LT-[Group I
Interest] is equal to [ ]% of the aggregate Stated Principal
Balance of the [Group I] Mortgage Loans, (vi) the
Class LT-[Group II Interest] is equal to [ ]% of the
aggregate Stated Principal Balance of the [Group II] Mortgage Loans and
(vii) the remainder shall be applied to the Class LT-[XX Interest].
The
[Upper Tier] REMIC shall issue the following Classes of [Upper Tier] REMIC
Regular Interests and each such interest, other than the [Class UT-R
Interest], is hereby designated as a regular interest in the [Upper Tier]
REMIC.
-3-
[Upper
Tier] REMIC
|
[Upper
Tier] REMIC
Class Designation
|
[Upper
Tier] REMIC Interest Rate and Corresponding Class Interest
Rate
|
Initial
[Upper Tier] REMIC Principal Amount and Corresponding
Class Certificate Balance
|
Corresponding
Class of
Certificates
|
|
[
]
|
(1)
|
$[
]
|
[
]
|
|
[
]
|
(2)
|
$[
]
|
[
]
|
|
[
]
|
(3)
|
$[
]
|
[
]
|
|
[
]
|
(4)
|
$[
]
|
[
]
|
|
[
]
|
(5)
|
$[
]
|
[
]
|
|
[
]
|
(6)
|
$[
]
|
[
]
|
|
[
]
|
(7)
|
$[
]
|
[
]
|
|
[
]
|
(8)
|
$
0
|
[
]
|
|
Class [UT-R]
|
(9)
|
$
0
|
Class [R]
|
|
(1)
|
The
Class [ ] Interest will bear interest during each
Interest Accrual Period at a per annum rate equal to (a) on or prior
to the Optional Termination Date, the lesser of (i) LIBOR plus the
applicable Pass-Through Margin and (ii) the [Group I] Available
Funds Cap or (b) after the Optional Termination Date, the lesser of
(i) LIBOR plus the applicable Pass-Through Margin and (ii) the
[Group I] Available Funds Cap.
|
|
(2
|
The
Class [ ] Interest will bear interest during each
Interest Accrual Period at a per annum rate equal to (a) on or prior
to the Optional Termination Date, the lesser of (i) LIBOR plus the
applicable Pass-Through Margin and (ii) the [Group II] Available
Funds Cap or (b) after the Optional Termination Date, the lesser of
(i) LIBOR plus the applicable Pass-Through Margin and (ii) the
[Group II] Available Funds
Cap.
|
|
(3)
|
The
Class [ ] Interest will bear interest during each
Interest Accrual Period at a per annum rate equal to (a) on or prior
to the Optional Termination Date, the lesser of (i) LIBOR plus the
applicable Pass-Through Margin and (ii) the [Group II] Available
Funds Cap or (b) after the Optional Termination Date, the lesser of
(i) LIBOR plus the applicable Pass-Through Margin and (ii) the
[Group II] Available Funds
Cap.
|
|
(4)
|
The
Class [ ] Interest will bear interest during each
Interest Accrual Period at a per annum rate equal to (a) on or prior
to the Optional Termination Date, the lesser of (i) LIBOR plus the
applicable Pass-Through Margin and (ii) the [Group II] Available
Funds Cap or (b) after the Optional Termination Date, the lesser of
(i) LIBOR plus the applicable Pass-Through Margin and (ii) the
[Group II] Available Funds
Cap.
|
|
(5)
|
The
Class [ ] Interest will bear interest during each
Interest Accrual Period at a per annum rate equal to (a) on or prior
to the Optional Termination Date, the lesser of (i) LIBOR plus the
applicable Pass-Through Margin and (ii) the [Group II] Available
Funds Cap or (b) after the Optional Termination Date, the lesser of
(i) LIBOR plus the applicable Pass-Through Margin and (ii) the
[Group II] Available Funds
Cap.
|
|
(6)
|
The
Class [ ] and Class [ ]
Interests will bear interest during each Interest Accrual Period
at a per
annum rate equal to (a) on or prior to the Optional Termination Date,
the lesser of (i) LIBOR plus the applicable Pass-Through Margin and
(ii) the Available Funds Cap or (b) after the Optional
Termination Date, the lesser of (i) LIBOR plus the applicable
Pass-Through Margin and (ii) the Available Funds
Cap.
|
|
(7)
|
The
Class [ ] Interest will bear interest during each
Interest Accrual Period at a per annum rate equal to (a) on or
prior to
the Optional Termination Date, the lesser of (i) [ ]% and
(ii) the Available Funds Cap or (b) after the Optional Termination
Date,
the lesser of (i) [ ]% and (ii) the Available Funds Cap.
|
-4-
|
(8)
|
The
Class [X] Interest has an initial principal balance of
$[ ]. The Class [X] Interest will not accrue
interest on its principal balance from time to time, but will accrue
interest on a notional principal balance. As of any Distribution
Date, the
Class [X] Interest shall have a notional principal balance equal to
the aggregate of the principal balances of the [Lower Tier] REMIC
Regular
Interests as of the first day of the related Interest Accrual Period.
With
respect to any Interest Accrual Period, the Class [X] Interest shall
bear interest at a rate equal to the excess, if any, of the [Lower-Tier]
REMIC WAC Cap over the product of (i) [ ] and
(ii) the weighted average [Lower Tier] REMIC Interest Rate of the
[Lower Tier] REMIC Regular Interests (other
than [Class LT-Group I(SUB)], [Class LT-Group I],
[Class LT-Group II(SUB)], [Class LT-Group II] and
[Class LT-XX Interests)],
where the [Lower Tier] REMIC Interest Rate on the [Class LT-Accrual
Interest] is subject to a cap equal to zero and each [LT Accretion
Directed Class] is subject to a cap equal to the Interest Rate on its
Corresponding Class (adjusted to reflect an actual/360 day count
convention in the case of Class [ ]). With respect to any
Distribution Date, interest that so accrues on the notional principal
balance of the Class [X] Interest shall be deferred in an amount
equal to any increase in the Overcollateralization Amount on such
Distribution Date. Such deferred interest shall not itself bear
interest.
The Class [X] Certificates will represent beneficial ownership of the
Class [X] Interest, [the Cap Agreements], and amounts in [the Excess
Reserve Fund Account], subject to the obligation to make payments
from the
[Excess Reserve Fund Account] in respect of Basis Risk Carryover
Amounts.
For federal income tax purposes, the Securities Administrator will
treat a
Class [X] Certificateholder’s obligation to make payments from the
[Excess Reserve Fund Account] as payments made pursuant to an interest
rate cap contract written by the Class [X] Certificateholders in
favor of each Class of LIBOR Certificates.
|
|
(9)
|
The
Class [UT-R] Interest is the sole Class of residual interest in the
[Upper Tier] REMIC. The Class [UT-R] Interest does not have an
interest rate.
|
|
(10)
|
Each
of these Certificates will represent not only the ownership of
the
Corresponding Class of [Upper Tier] REMIC Regular Interest but also
the right to receive payments from the [Excess Reserve Fund Account]
in
respect of any Basis Risk Carryover Amounts. For federal income
tax
purposes, the Securities Administrator will treat a Certificateholder’s
right to receive payments from the [Excess Reserve Fund Account]
as
payments made pursuant to an interest rate cap contract written
by the
Class [X]
Certificateholders.
|
The
minimum denomination for each Class of Certificates, other than the
Class [P], Class [R] and the Class [X] Certificates, will be
$[ ] with integral multiples of $1 in excess thereof except
that one Certificate in each Class may be issued in a different amount. The
minimum denomination for each of the Class [P] and Class [X]
Certificates will be a [ ]% Percentage Interest in such Class,
and the minimum denomination for the Class [R] Certificates shall be
[ ]% Percentage Interest in such Class.
Set
forth
below are designations of Classes of Certificates to the categories used
herein:
|
Book-Entry
Certificates
|
All
Classes of Certificates other than the Physical
Certificates.
|
|
|
Class [A]
Certificates
|
Class [ ]
and Class [ ] Certificates.
|
|
|
Class [M]
Certificates
|
Class [M]
Certificates.
|
|
|
Delay
Certificates
|
Class
[ ] Certificates.
|
|
|
ERISA-Restricted
Certificates
|
Class
[ ], Class [P], Class [X] and Class [R] Certificates; any
Certificate with a rating which falls below the lowest applicable
permitted rating under the Underwriters’ Exemption.
|
|
|
[ERISA-Restricted
Swap Certificates
|
Any
Class [ ] or Class [ ] Certificate prior to the
termination of the Swap Agreement.]
|
-5-
|
LIBOR
Certificates
|
Collectively,
Class [A] and Class [M] Certificates.
|
|
|
Non-Delay
Certificates
|
Class [ ],
Class [ ] and Class [X]
Certificates.
|
|
|
Offered
Certificates
|
All
Classes of Certificates other than the Private
Certificates.
|
|
|
Physical
Certificates
|
Class [P],
Class [X] and Class [R] Certificates.
|
|
|
Private
Certificates
|
Class [P],
Class [X] and Class [R] Certificates.
|
|
|
Rating
Agencies
|
[Fitch,
Xxxxx’x and Standard & Poor’s.]
|
|
|
Regular
Certificates
|
All
Classes of Certificates other than the Class [R]
Certificates.
|
|
|
Residual
Certificates
|
Class [R]
Certificates.
|
ARTICLE
I
DEFINITIONS
Whenever
used in this Agreement, the following words and phrases, unless the context
otherwise requires, shall have the following meanings:
10-K
Filing Deadline:
As
defined in Section 8.12(a)(ii).
Accepted
Servicing Practices:
With
respect to any Mortgage Loan and the Servicer, the servicing and administration
of such Mortgage Loan (i) in the same manner in which, and with the same
care, skill, prudence and diligence with which the Servicer generally services
and administers similar mortgage loans with similar mortgagors (A) for
other third parties, giving due consideration to customary and usual standards
of practice of prudent institutional residential mortgage lenders servicing
their own mortgage loans or (B) held in the Servicer’s own portfolio,
whichever standard is higher, and (ii) in accordance with applicable local,
state and federal laws, rules and regulations.
Account:
Any of
the Collection Account, the Distribution Account, any Escrow Account, [the
Excess Reserve Fund Account], [and with respect to the Supplemental Interest
Trust, the Supplemental Interest Trust Account]. Each Account shall be an
Eligible Account.
Additional
Balance:
With
respect to the Mortgage Loans and any date of determination, the aggregate
amount of all Draws conveyed to the Issuer with respect to such Mortgage Pool
pursuant to Section 2.01 of this Agreement.
Additional
Balance Contributed Amount:
The
[_________] Additional Balance Contributed Amount and the [_________] Additional
Balance Contributed Amount, as applicable.
-6-
Additional
Form 10-D Disclosure:
As
defined in Section 8.12(a)(i).
Additional
Form 10-K Disclosure:
As
defined in Section 8.12(a)(ii).
Additional
Servicer:
Any
affiliate of the Servicer that Services any of the Mortgage Loans and each
Person who is not an affiliate of the Servicer, who Services 10% or more of
the
Mortgage Loans. For clarification purposes, for purposes of this Agreement,
the
Master Servicer and the Securities Administrator are Additional Servicers.
[Additional
Termination Event:
As
defined in the Swap Agreement.]
Adjustable
Rate Mortgage Loan:
A
Mortgage Loan which provides for the adjustment of the Mortgage Rate payable
in
respect thereto.
Adjusted
Lower TIER WAC:
For
any
Distribution Date (and the related Accrual Period), an amount equal to (i)
[ ], multiplied by (ii) the weighted average of the interest
rates for such Distribution Date for the Class [ ] Interests,
weighted in proportion to their Class Principal Amounts as of the beginning
of
the related Accrual Period and computed by subjecting the rate on the Class
[ ] and [ ] Interest to a cap of
[ ]%, and by subjecting the rate on each of the Class
[ ], and [ ] Interests to a cap that
corresponds to the Interest Rate (determined by substituting the [REMIC 2 Net
Funds Cap] for the applicable Available Funds Cap) for the Corresponding Class
of Certificates; provided,
however,
that
for each Class of [ ] Certificates, the Certificate Interest
Rate shall be multiplied by an amount equal to (a) the actual number of days
in
the Interest Accrual Period, divided by (b) [ ].
Adjustment
Date:
As to
any Adjustable Rate Mortgage Loan, the first Due Date on which the related
Mortgage Rate adjusts as set forth in the related Credit Line Agreement and
each
Due Date thereafter on which the Mortgage Rate adjusts as set forth in the
related Credit Line Agreement.
Advance:
Any
P&I Advance or Servicing Advance.
[Affected
Party:
As
defined in the Swap Agreement.]
Affiliate:
With
respect to any Person, any other Person controlling, controlled by or under
common control with such first Person. For the purposes of this definition,
“control” means the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities,
by
contract or otherwise; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing.
Agreement:
This
Pooling and Servicing Agreement and all amendments or supplements
hereto.
Amounts
Held for Future Distribution:
As to
the Certificates on any Distribution Date, the aggregate amount held in the
Collection Account at the close of business on the related Determination Date
on
account of (i) Principal Prepayments, Insurance Proceeds, Condemnation
Proceeds, Liquidation Proceeds and Subsequent Recoveries on the Mortgage Loans
received after the end of the related Prepayment Period and (ii) all
Scheduled Payments on the Mortgage Loans due after the end of the related Due
Period.
-7-
Applied
Realized Loss Amount:
With
respect to any Distribution Date, the amount, if any, by which the aggregate
Class Certificate Balance of the LIBOR Certificates after distributions of
principal on such Certificates on such Distribution Date exceeds the aggregate
Stated Principal Balance of the Mortgage Loans for such Distribution
Date.
Appraised
Value:
The
value set forth in an appraisal made in connection with the origination of
the
related Mortgage Loan as the value of the Mortgaged Property.
Assignment
of Mortgage:
An
assignment of the Mortgage, notice of transfer or equivalent instrument in
recordable form (other than the assignee’s name and recording information not
yet returned from the recording office), reflecting the sale of the Mortgage
to
the Trustee.
Available
Funds:
With
respect to any Distribution Date and the Mortgage Loans to the extent received
by the Master Servicer (x) the sum of (i) all scheduled installments
of interest (net of the related Expense Fees) and principal due on the Due
Date
on such Mortgage Loans in the related Due Period and received by the Servicer
on
or prior to the related Determination Date, together with any
P&I Advances in respect thereof; (ii) all Condemnation Proceeds,
Insurance Proceeds, Liquidation Proceeds and Subsequent Recoveries received
by
the Servicer during the related Prepayment Period (in each case, net of
unreimbursed expenses incurred in connection with a liquidation or foreclosure
and unreimbursed Advances, if any); (iii) all partial or full prepayments
on the Mortgage Loans received by the Servicer during the related Prepayment
Period together with all Compensating Interest paid by the Servicer in
connection therewith (excluding any Prepayment Charges); (iv) all
Substitution Adjustment Amounts with respect to the substitutions of Mortgage
Loans that occur on or prior to the related Determination Date; (v) all
amounts received with respect to such Distribution Date as the Repurchase Price
in respect of a Mortgage Loan repurchased by the Mortgage Loan Seller or the
Sponsor on or prior to the related Determination Date; and (vi) the
proceeds with respect to the termination of the Trust Fund pursuant to
clause (a) of Section 11.01; reduced by (y) amounts in
reimbursement for Advances previously made with respect to the Mortgage Loans
and other amounts as to which the Servicer, the Depositor, the Master Servicer,
the Securities Administrator or the Trustee are entitled to be paid or
reimbursed pursuant to this Agreement.
Back-up
Certification:
As
defined in Section 3.24.
Basic
Principal Payment Amount:
With
respect to any Distribution Date, the excess of (i) the Principal
Remittance Amount for such Distribution Date over (ii) the Excess
Overcollateralization Amount, if any, for such Distribution Date.
Basis
Risk Carryover Amount:
With
respect to each Class of LIBOR Certificates, as of any Distribution Date,
the sum of (A) if on such Distribution Date the Interest Rate for any
Class of LIBOR Certificates is based upon the [Group I] Available
Funds Cap, the [Group II] Available Funds Cap or the [Class M] Available Funds
Cap, as applicable, the excess of (i) the amount of interest such
Class of Certificates would otherwise be entitled to receive on such
Distribution Date had such rate been calculated (x) as the sum of LIBOR and
the
applicable Interest Margin on such Class of Certificates for such
Distribution Date, over (ii) the amount of interest payable on such
Class of Certificates at, with respect to the
Class [ ] Certificates, the [Group I] Available Funds
Cap, at, with respect to the Class [ ] Certificates, the
[Group II] Available Funds Cap, and, at, with respect to the Class
[ ] Certificates, the [Class M] Available Funds Cap, as
applicable, for such Distribution Date and (B) the portion of any such
excess described in clause (A) for such Class of Certificates
from all previous Distribution Dates not previously paid, together with interest
thereon at a rate equal the applicable Interest Rate for each such Class of
Certificates for such Distribution Date.
-8-
Basis
Risk Payment:
For any
Distribution Date, an amount equal to the lesser of (i) the aggregate of
the Basis Risk Carryover Amounts for such Distribution Date and (ii) the
Class [X] Distributable Amount (prior to any reduction for Basis Risk
Payments).
Best’s:
Best’s
Key Rating Guide, as the same shall be amended from time to time.
Book-Entry
Certificates:
As
specified in the Preliminary Statement.
Business
Day:
Any day
other than (i) Saturday or Sunday, or (ii) a day on which banking and
savings and loan institutions, in (a) the States of New York,
[ ] (b) the State in which the Servicer’s servicing
operations are located, or (c) any State in which the Corporate Trust
Office is located, are authorized or obligated by law or executive order to
be
closed.
[_________]
Additional Balance Contributed Amount:
As to
any Payment Date and during the Managed Amortization Period, the difference,
if
any, between (a) the aggregate excess, if any, for all prior Payment Dates
of
(i) the aggregate principal amount of all Additional Balances in respect of
the
[_________] Mortgage Loans created during the Collection Period relating to
each
such Payment Date over (ii) Principal Collections in respect to the [_________]
Mortgage Loans relating to such Payment Date, and (b) the aggregate [_________]
Additional Balance Contributed Amounts paid to [_________] on all prior Payment
Dates pursuant to Section 5.03(b)(iii) of this Agreement. During the Rapid
Amortization Period, zero.
Certificate:
Any one
of the Certificates executed by the Securities Administrator in substantially
the forms attached hereto as exhibits.
Certificate
Balance:
With
respect to any Class of Certificates, other than the Class [X],
Class [P] or Class [R] Certificates, at any date, the maximum dollar
amount of principal to which the Holder thereof is then entitled hereunder,
such
amount being equal to the Denomination thereof minus all distributions of
principal previously made with respect thereto and in the case of any Class
[ ] Certificates, reduced by any Applied Realized Loss Amounts
allocated to such Class of Certificates pursuant to Section 4.05;
provided,
however,
that
immediately following the Distribution Date on which a Subsequent Recovery
is
distributed, the Class Certificate Balances of any Class or Classes of
Certificates that have been previously reduced by Applied Realized Loss Amounts
will be increased, in order of seniority, by the amount of any Subsequent
Recovery distributed on such Distribution Date (up to the amount of Unpaid
Realized Loss Amount for such Class or Classes for such Distribution Date).
The Class [P] Certificates are issued with an initial Class [P] Principal
Amount of $[ ]. The Class [X] and Class [R]
Certificates have no Certificate Balance.
-9-
Certificate
Group:
The
[Group I Certificates] or the [Group II Certificates], as
applicable.
Certificate
Owner:
With
respect to a Book-Entry Certificate, the Person who is the beneficial owner
of
such Book-Entry Certificate.
Certificate
Register:
The
register maintained pursuant to Section 5.02.
Certificateholder
or
Holder:
The
person in whose name a Certificate is registered in the Certificate Register,
except that, solely for the purpose of giving any consent pursuant to this
Agreement, any Certificate registered in the name of the Depositor or any
Affiliate of the Depositor shall be deemed not to be Outstanding and the
Percentage Interest evidenced thereby shall not be taken into account in
determining whether the requisite amount of Percentage Interests necessary
to
effect such consent has been obtained; provided,
however,
that if
any such Person (including the Depositor) owns 100.00% of the Percentage
Interests evidenced by a Class of Certificates, such Certificates shall be
deemed to be Outstanding for purposes of any provision hereof that requires
the
consent of the Holders of Certificates of a particular Class as a condition
to the taking of any action hereunder. The Securities Administrator is entitled
to rely conclusively on a certification of the Depositor or any Affiliate of
the
Depositor in determining which Certificates are registered in the name of an
Affiliate of the Depositor.
Certification
Parties:
As
defined in Section 3.24.
Certifying
Person:
As
defined in Section 3.24.
Charge-Off
Amount:
With
respect to any Charged-Off HELOC is the amount of the principal balance that
has
been written down.
Charged-Off
HELOC:
Means
(i) a Mortgage Loan with a Principal Balance that has been written down on
the
related Servicer’s servicing system in accordance with its policies and
procedures and (ii) any Mortgage Loan that is more than 180 days past
due.
Class:
All
Certificates bearing the same class designation as set forth in the Preliminary
Statement.
Class [ ]
Certificates:
All
Certificates bearing the Class designation of
“Class [ ]”.
Class [ ]
Certificates:
All
Certificates bearing the Class designation of
“Class [ ]”.
Class [ ]
Certificates:
All
Certificates bearing the Class designation of
“Class [ ]”.
-10-
Class [ ]
Certificates:
All
Certificates bearing the Class designation of
“Class [ ]”.
Class [ ]
Certificates:
All
Certificates bearing the Class designation of
“Class [ ]”.
Class [A]
Certificates:
As
specified in the Preliminary Statement.
Class Certificate
Balance:
With
respect to any Class of LIBOR Certificate and as to any date of
determination, the aggregate of the Certificate Balances of all Certificates
of
such Class as of such date. With respect to the Class [X], Class [P] and
Class [R] Certificates, zero. With respect to any [Lower Tier Interest], the
initial Class Principal Balance as shown or described in the table set forth
in
the Preliminary Statement to this Agreement for the issuing REMIC, as reduced
by
any principal distributed with respect to such [Lower Tier Interest] and
Realized Losses allocated to such [Lower Tier Interest].
Class
[I] Shortfalls:
As
defined in Section 8.11 hereof. For
purposes of clarity, the Class [I] Shortfall for any Distribution Date shall
equal the amount payable to the Swap Counterparty on such Distribution Date
in
excess of the amount payable with respect to the Class [ ]
interest in the [Upper Tier REMIC] on such Distribution Date, all as further
provided in Section 8.11 hereof.
Class
[M] Available Funds Cap:
With
respect to the Class [M] Certificates as of any Distribution Date, a per annum
rate equal to the weighted average of the [Group I] Available Funds Cap and
the
[Group II] Available Funds Cap, weighted on the basis of the Group Subordinate
Amount for the [Group 1] Mortgage Loans and the Group Subordinate Amount for
the
[Group II] Mortgage Loans.
Class [M]
Certificates:
As
specified in the Preliminary Statement.
Class [M]
Principal Payment Amount:
With
respect to any Distribution Date and any Class of Class [M]
Certificates is the lesser of (i) the excess of (a) the Principal
Payment Amount over (b) the aggregate amount distributed on that
Distribution Date as principal to all Classes of Certificates more senior than
that Class of Class [M] Certificates and (ii) the excess of (a) the
sum of the aggregate Class Certificate Balances of all Class of
Certificates more senior than that Class of Class [M] Certificates
(after giving effect to all amounts distributed on that Distribution Date to
those Classes of more senior certificates) and the Class Certificate
Balance of that Class of Class [M] Certificates immediately prior to
that Distribution Date over (b) the lesser of:
(x) the
percentage set forth in the table below for the applicable Class of
Class M Certificates multiplied by the aggregate Stated Principal Balance
of the Mortgage Loans for that Distribution Date:
-11-
|
Class
|
Percentage
|
|
[ ]
|
[ ]%
|
|
[ ]
|
[ ]%
|
|
[ ]
|
[ ]%
|
|
[ ]
|
[ ]%
|
|
[ ]
|
[ ]%
|
|
[ ]
|
[ ]%
|
|
[ ]
|
[ ]%
|
|
[ ]
|
[ ]%
|
|
[ ]
|
[ ]%
|
|
[ ]
|
[ ]%
|
|
[ ]
|
[ ]%
|
|
[ ]
|
[ ]%
|
and
(y) the
excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans
for that Distribution Date over [ ]% of the aggregate Stated
Principal Balance of the Mortgage Loans as of the Cut-off Date, until the
Class Certificate Balance of that Class of Class [M] Certificates has
been reduced to zero.
Class [ ]
Certificates:
All
Certificates bearing the Class designation of
“Class [ ]”.
Class [P]
Certificates:
All
Certificates bearing the Class designation of “Class [P]”.
Class [R]
Certificates:
All
Certificates bearing the Class designation of “Class [R]”.
Class [P]
Principal Amount:
As of
the Closing Date, $[ ].
Class [X]
Certificates:
All
Certificates bearing the Class designation of “Class [X]”.
Class
[X] Distributable Amount:
With
respect to any Distribution Date, the amount of interest that has accrued on
the
Class [X] Notional Balance, as described in the Preliminary Statement, but
that
has not been distributed prior to such date. In addition, such amount shall
include the initial Overcollateralization Amount of $[ ]
($[ ] less $[ ] of such amount allocated to
the Class[P] Certificates) to the extent such amount has not been distributed
on
an earlier Distribution Date as part of the Overcollateralization Reduction
Amount.
Class
[X] Notional Balance:
With
respect to
any
Distribution Date (and the related Interest Accrual Period) the aggregate
principal balance of the regular interests in [REMIC 3] as specified in the
Preliminary Statement hereto.
Closing
Date:
[ ].
Code:
The
Internal Revenue Code of 1986, including any successor or amendatory
provisions.
-12-
Collection
Account:
As
defined in Section 3.10(a).
Commission:
The
United States Securities and Exchange Commission.
Compensating
Interest:
For any
Distribution Date, the lesser of (a) the amount, if any, by which the
Prepayment Interest Shortfall, if any, for such Distribution Date, with respect
to all voluntary Principal Prepayments (excluding any payments made upon
liquidation of any Mortgage Loan) exceeds all Prepayment Interest Excesses
for
such Distribution Date, and (b) the aggregate amount of the Servicing Fee
actually retained by or paid to the Servicer for such Distribution
Date.
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.
Controlling
Person:
With
respect to any Person, any other Person who “controls” such Person within the
meaning of the Securities Act.
Corporate
Trust Office:
With
respect to the Securities Administrator, (i) for transfer, presentation or
surrender of Certificates, the office at [ ], Attention:
[ ], and (ii) for all other purposes, [ ],
Attention: [ ] or at such other address as the Securities
Administrator may designate from time to time by notice to the
Certificateholders, the Depositor, the Master Servicer and the Trustee. With
respect to the Trustee, the designated office of the Trustee in the State of
[ ] at which any particular time its corporate trust business
with respect to this Agreement is administered, which office at the date of
the
execution of this Agreement is located at [ ], Attention:
[ ], and its telephone number is [ ] and which
is also the address to which notices to and correspondence with the Trustee
under this Agreement should be directed.
Corresponding
Class:
As
described in the Preliminary Statement.
Credit
Enhancement Percentage:
With
respect to any Distribution Date, the percentage obtained by dividing
(x) the sum of (i) the aggregate Class Certificate Balance of the
Class [ ] Certificates and (ii) the Overcollateralization Amount
(assuming the Overcollateralization Amount is not less than zero and in each
case after taking into account the distributions of the Principal Payment Amount
for such Distribution Date [assuming no Trigger Event has occurred]) by
(y) the aggregate Stated Principal Balance of the Mortgage Loans for such
Distribution Date.
Credit
Limit:
As to
any Mortgage Loan, the maximum principal balance permitted under the terms
of
the related Credit Line Agreement.
Credit
Limit Utilization Rate:
As to
any Mortgage Loan, the percentage equivalent of a fraction the numerator of
which is the Principal Balance of such Mortgage Loan as of the Cut-Off Date
and
the denominator of which is the related Credit Limit.
-13-
Credit
Line Agreement:
With
respect to any Mortgage Loan, the related home equity line of credit agreement
and promissory note executed by the related Mortgagor and any amendment or
modification thereof.
Credit
Risk Manager:
Not
applicable.
Credit
Risk Management Agreement:
Not
applicable.
Credit
Risk Manager’s Fee Rate:
Not
applicable.
Cumulative
Loss Percentage:
With
respect to any Distribution Date, the percentage equivalent of a fraction,
the
numerator of which is the aggregate amount of Realized Losses incurred from
the
Cut-off Date to the last day of the calendar month preceding the month in which
such Distribution Date occurs and the denominator of which is the Cut-off Date
Pool Principal Balance of the Mortgage Loans.
[Cumulative
Loss Trigger Event:
If,
with respect to any Distribution Date, the quotient (expressed as a
percentage) of (x) the aggregate amount of Realized Losses incurred since
the Cut-off Date through the last day of the related Prepayment Period, divided
by (y) the Cut-off Date Pool Principal Balance, exceeds the applicable loss
percentages set forth below with respect to such Distribution Date:
|
Distribution
Date Occurring In:
|
Loss
Percentage:
|
|
|
[ ]
through
|
[ ]%
for the first month, plus an additional 1/12th of
|
|
|
[ ]
_________________
|
[ ]%
for each month thereafter
|
|
|
[ ]
through
|
||
|
[ ]
_________________
|
[ ]%
for the first month, plus an additional 1/12th of
|
|
|
[ ]%
for each month thereafter
|
||
|
[ ]
through
|
||
|
[ ]
_________________
|
[ ]%
for the first month, plus an additional 1/12th of
|
|
|
[ ]%
for each month thereafter
|
||
|
[ ]
through
|
||
|
[ ]
_________________
|
[ ]%
for the first month, plus an additional 1/12th of
|
|
|
[ ]%
for each month thereafter
|
||
|
[ ]
and thereafter ______________
|
[ ]]%
|
|
Custodial
File:
The
meaning assigned to such term in Section 2.01(a).
Custodian:
Initially, [ ], or any successor custodian appointed
hereunder.
Cut-off
Date:
[ ].
-14-
Cut-off
Date Pool Principal Balance:
The
aggregate Stated Principal Balances of all Mortgage Loans as of the Cut-off
Date.
Cut-off
Date Principal Balance:
As to
any Mortgage Loan, the Stated Principal Balance thereof as of the close of
business on the Cut-off Date.
[Data
Tape Information:
With
respect to each Mortgage Loan, the same information (provided as of the Cut-off
Date) included in the data fields specified under the definition of “Mortgage
Loan Schedule” in the Master MLPSA, with such additions and modifications as
agreed upon by the Mortgage Loan Seller and the Depositor. A copy of the Master
MLPSA is attached as Exhibits Q hereto.]
Debt
Service Reduction:
With
respect to any Mortgage Loan, a reduction by a court of competent jurisdiction
in a proceeding under the United States Bankruptcy Code in the Scheduled Payment
for such Mortgage Loan which became final and non-appealable, except such a
reduction resulting from a Deficient Valuation or any reduction that results
in
a permanent forgiveness of principal.
[Defaulting
Party:
As
defined in the Swap Agreement.]
Deficient
Valuation:
With
respect to any Mortgage Loan, a valuation of the related Mortgaged Property
by a
court of competent jurisdiction in an amount less than then outstanding
principal balance of the Mortgage Loan, which valuation results from a
proceeding initiated under the United States Bankruptcy Code.
Definitive
Certificates:
Any
Certificate evidenced by a Physical Certificate and any Certificate issued
in
lieu of a Book-Entry Certificate pursuant to Section 5.02(e).
Delay
Certificates:
As
specified in the Preliminary Statement.
Deleted
Mortgage Loan:
As
defined in Section 2.03.
Delinquency
Rate:
For any
calendar month, a fraction, expressed as a percentage, the numerator of which
is
the aggregate Stated Principal Balance of 60+ Day Delinquent Mortgage Loans
as
of the close of business on the last day of such month, and the denominator
of
which is the aggregate Stated Principal Balance of the Mortgage Loans as of
the
close of business on the last day of such month.
[Delinquency
Trigger Event:
With
respect to any Distribution Date, the circumstances in which the Rolling Three
Month Delinquency Rate as of the last day of the immediately preceding calendar
month exceeds [ ]% of the Credit Enhancement Percentage for the
Class [ ] Certificates.]
Denomination:
With
respect to each Certificate, the amount set forth on the face thereof as the
“Initial Certificate Balance of this Certificate” or the Percentage Interest
appearing on the face thereof.
-15-
Depositor:
Structured Asset Securities Corporation, a Delaware corporation, and its
successors in interest.
Depository:
The
initial Depository shall be The Depository Trust Company, the nominee of which
is CEDE & Co., as the registered Holder of the Book-Entry Certificates.
The Depository shall at all times be a “clearing corporation” as defined in
Section 8-102(a)(5) of the Uniform Commercial Code of the State of New
York.
Depository
Institution:
Any
depository institution or trust company, including the Trustee and the
Securities Administrator, that (a) is incorporated under the laws of the
United States of America or any State thereof, (b) is subject to
supervision and examination by federal or state banking authorities and
(c) has outstanding unsecured commercial paper or other short-term
unsecured debt obligations that are rated P-1 by Moody’s, F1+ by Fitch and A-1
by Standard & Poor’s.
Depository
Participant:
A
broker, dealer, bank or other financial institution or other Person for whom
from time to time a Depository effects book-entry transfers and pledges of
securities deposited with the Depository.
Determination
Date:
With
respect to each Remittance Date, the [ ] day (or if such day is
not a Business Day, the immediately preceding Business Day) in the calendar
month in which such Remittance Date occurs.
Disqualified
Non-U.S. Person:
With
respect to a Class R Certificate, any Non-U.S. Person or agent thereof
other than (i) a Non-U.S. Person that holds the Class R Certificate in
connection with the conduct of a trade or business within the United States
and
has furnished the transferor and the Securities Administrator with an effective
IRS Form W-8ECI or (ii) a Non-U.S. Person that has delivered to both the
transferor and the Securities Administrator an opinion of a nationally
recognized tax counsel to the effect that the transfer of the Class R
Certificate to it is in accordance with the requirements of the Code and the
regulations promulgated thereunder and that such transfer of the Class R
Certificate will not be disregarded for federal income tax
purposes.
Distribution
Account:
The
separate Eligible Account created and maintained by the Securities Administrator
pursuant to Section 3.07(d) in the name of the Securities Administrator as
paying agent for the benefit of the Trustee and the Certificateholders and
designated “[ ] as paying agent in trust for registered holders
of [ ]”. Funds in the Distribution Account shall be held in
trust for the Certificateholders for the uses and purposes set forth in this
Agreement.
Distribution
Account Deposit Date:
As to
any Distribution Date, 12:00 noon New York City time on the [ ]
Business Day immediately preceding such Distribution Date.
Distribution
Date:
The
[ ] day of each calendar month, or if such day is not a
Business Day, the next succeeding Business Day, commencing in
[ ].
Document
Certification and Exception Report:
The
form of report attached to Exhibit F hereto.
-16-
Draw:
With
respect
to any
Mortgage Loan, an additional borrowing by the Mortgagor subsequent to the
Cut-Off Date in accordance with the related Credit Line Agreement.
Draw
Period:
With
respect to any Mortgage Loan, the period of time specified in the related Credit
Line Agreement whereby a Mortgagor may make a Draw under the related Credit
Line
Agreement, not to exceed five, ten or fifteen years (as applicable) unless
extended pursuant to such Credit Line Agreement and the Transfer and Servicing
Agreement, such extension to be limited by the provisions of the related
Transfer Agreement.
Due
Date:
The day
of the month on which the Scheduled Payment is due on a Mortgage Loan, exclusive
of any days of grace.
Due
Period:
With
respect to any Distribution Date, the period commencing on the second day of
the
calendar month preceding the month in which such Distribution Date occurs and
ending on the first day of the calendar month in which such Distribution Date
occurs.
XXXXX:
The
Commission’s Electronic Data Gathering and Retrieval System.
Eligible
Account:
Either
(i) an account maintained with a federal or state-chartered depository
institution or trust company that complies with the definition of Eligible
Institution, (ii) an account maintained with the corporate trust department
of a
federal depository institution or state-chartered depository institution subject
to regulations regarding fiduciary funds on deposit similar to Title 12 of
the
U.S. Code of Federal Regulation Section 9.10(b), which, in either case, has
corporate trust powers and is acting in its fiduciary capacity or (iii) any
other account acceptable to each Rating Agency. Eligible Accounts may bear
interest, and may include, if otherwise qualified under this definition,
accounts maintained with the Securities Administrator.
Eligible
Institution:
A
federal or state-chartered depository institution or trust company the
commercial paper, short-term debt obligations, or other short-term deposits
of
which are rated at least “A-1+” by Standard & Poor’s if the amounts on
deposit are to be held in the account for no more than 365 days (or at least
“A-2” if the amounts on deposit are to be held in the account for no more than
30 days), “P-1” by Moody’s and “F1+” by Fitch (or a comparable rating if another
Rating Agency is specified by the Depositor by written notice to each of the
Servicer and the Securities Administrator) or long-term unsecured debt
obligations are rated at least “AA-” by Standard & Poor’s if the amounts on
deposit are to be held in the account for no more than 365 days.
ERISA:
The
Employee Retirement Income Security Act of 1974, as amended.
ERISA-Qualifying
Underwriting:
A best
efforts or firm commitment underwriting or private placement that meets the
requirements of Prohibited Transaction Exemption (“PTE”) [ ],
[ ], as amended by PTE [ ],
[ ], PTE [ ], [ ] and PTE
[ ], [ ] (or any successor thereto), or
any substantially similar administrative exemption granted by the U.S.
Department of Labor.
ERISA-Restricted
Certificate:
As
specified in the Preliminary Statement.
-17-
[ERISA-Restricted
Swap Certificate:
As
specified in the Preliminary Statement.]
Escrow
Account:
The
Eligible Account or Accounts established and maintained by the Servicer pursuant
to Section 3.09(b).
Escrow
Payments:
As
defined in Section 3.09(b).
Event
of Default:
As
defined in Section 7.01.
Excess
Overcollateralization
Amount:
With
respect to any Distribution Date, the excess, if any, of (a) the
Overcollateralization Amount on such Distribution Date over (b) the
Overcollateralization Target Amount for such Distribution Date.
[Excess
Reserve Fund Account:
The
separate Eligible Account created and maintained by the Securities Administrator
pursuant to Sections 3.07(b) and 3.07(c) in the name of the Securities
Administrator as paying agent for the benefit of the LIBOR Certificateholders
and the Class [X] Certificateholders and designated “[ ] as
paying agent in trust for registered holders of
[ ]”.
Funds in the Excess Reserve Fund Account shall be held in trust for such
Certificateholders for the uses and purposes set forth in this Agreement.
Amounts on deposit in the Excess Reserve Fund Account shall not be invested.
The
Excess Reserve Fund Account shall be considered part of the Trust Fund but
not
the part of any REMIC.
Exchange
Act:
The
Securities Exchange Act of 1934, as amended.
Excluded
Trust Assets:
As
defined in the Preliminary Statement.
Expense
Adjusted Mortgage Rate:
With
respect to any Distribution Date and as to each Mortgage Loan, the per annum
rate equal to the Mortgage Rate as of the first day of the related Due Period
less the Expense Fee Rate.
Expense
Fee Rate:
As to
each Mortgage Loan, a per annum rate equal to the sum of the Servicing Fee
Rate
and the Master Servicing Fee Rate.
Expense
Fees:
As to
each Mortgage Loan and any Distribution Date, the sum of the Servicing Fee
and
the Master Servicing Fee.
[Extra
Principal Payment Amount:
As of
any Distribution Date, the lesser of (x) the related Total Monthly Excess
Spread for such Distribution Date and (y) the related Overcollateralization
Deficiency for such Distribution Date.]
Xxxxxx
Xxx:
The
Federal National Mortgage Association, or any successor thereto.
FDIC:
The
Federal Deposit Insurance Corporation, or any successor thereto.
Final
Recovery Determination:
With
respect to any defaulted Mortgage Loan or any REO Property (other than a
Mortgage Loan or REO Property purchased by the Mortgage Loan Seller or the
Sponsor as contemplated by this Agreement or the Purchase Agreement, as
applicable), a determination made by the Servicer that all Insurance Proceeds,
Condemnation Proceeds, Liquidation Proceeds and other payments or recoveries
which the Servicer, in its reasonable good faith judgment, expects to be finally
recoverable in respect thereof have been so recovered. The Servicer shall
maintain records, prepared by a Servicing Officer, of each Final Recovery
Determination made thereby.
-18-
Final
Scheduled Distribution Date:
[ ].
[Fitch:
Fitch,
Inc., or any successor thereto. If Fitch is designated as a Rating Agency in
the
Preliminary Statement, for purposes of Section 12.05(c) the address for
notices to Fitch shall be Fitch, Inc., Xxx Xxxxx Xxxxxx Xxxxx, Xxx Xxxx, Xxx
Xxxx 00000, Attention: [ ]or such other address as Fitch may
hereafter furnish to the Depositor and the Securities
Administrator.]
Fixed
Rate Mortgage Loan:
A
Mortgage Loan with respect to which the Mortgage Rate set forth in the Credit
Line Agreement is fixed for the term of such Mortgage Loan.
Form
8-K Disclosure Information:
As
defined in Section 8.12(a)(iii).
Xxxxxxx
Mac:
The
Federal Home Loan Mortgage Corporation, a corporate instrumentality of the
United States created and existing under Title III of the Emergency Home
Finance Act of 1970, as amended, or any successor thereto.
[_________] Additional
Balance Contributed Amount:
As to
any Payment Date and during the Managed Amortization Period, the difference,
if
any, between (a) the aggregate excess, if any, for all prior Payment Dates
of
(i) the aggregate principal amount of all Additional Balances in respect of
the
[_________] Mortgage Loans created during the Collection Period relating to
each
such Payment Date over (ii) Principal Collections in respect of the [_________]
Mortgage Loans relating to such Payment Date, and (b) the aggregate [_________]
Additional Balance Contributed Amounts paid to [_________] on all prior Payment
Dates pursuant to Section 5.03(b)(iii) of this Agreement. During the Rapid
Amortization Period, zero.
Gross
Margin:
With
respect to each Adjustable Rate Mortgage Loan, the fixed percentage amount
set
forth in the related Credit Line Agreement to be added to the Index to determine
the Mortgage Rate.
[Group I]
Available Funds Cap:
With
respect to the [Group I] Mortgage Loans as of any Distribution Date, the per
annum rate (subject to adjustment based on the actual number of days elapsed
in
the related Interest Accrual Period equal to (x) the weighted average of the
Expense Adjusted Mortgage Rate for each [Group I] Mortgage Loan then in effect
on the beginning of the related Due Period (not including for this purpose
any
[Group I] Mortgage Loans for which Principal Prepayments in Full have been
received and distributed in the month prior to that Distribution Date)
minus
(y) a
percentage equal to the product of (i) a fraction, the numerator of which is
equal to the portion of the Net Swap Payment or Swap Termination Payment
allocated to the [Group I] Mortgage Loans based on the applicable Group
Percentage (other than a Swap Termination Payment caused by the Swap
Counterparty) made to the Swap Counterparty and the denominator of which is
equal to the Stated Principal Balance of the [Group I] Mortgage Loans and (ii)
12.
-19-
[Group I]
Certificates:
The
[ ] Certificates.
[Group I]
Mortgage Loans:
The
Mortgage Loans identified on the Mortgage Loan Schedule as [Group I]
Mortgage Loans.
[Group I]
Principal Payment Amount:
With
respect to any Distribution Date prior to the Stepdown Date, the Principal
Payment Amount multiplied by the Group Principal Allocation Percentage for
the [Group I] Certificates.
[Group I]
Senior Principal Payment Amount:
With
respect to any Distribution Date, the lesser of (i) the [Group I] Principal
Payment Amount for that Distribution Date and (ii) the excess of (a) the
aggregate Class Certificate Balance of the [Group I] Certificates
immediately prior to that Distribution Date over (b) the lesser of
(x) [ ]% of the aggregate Stated Principal Balance of the
[Group I] Mortgage Loans for that Distribution Date and (y) the
excess, if any, of the aggregate Stated Principal Balance of the [Group I]
Mortgage Loans for that Distribution Date over [ ]% of the
aggregate State Principal Balance of the [Group I] Mortgage Loans as of the
Cut-off Date.
[[Group II]
Available Funds Cap:
With
respect to the [Group II] Mortgage Loans as of any Distribution Date, the per
annum rate (subject to adjustment based on the actual number of days elapsed
in
the related Interest Accrual Period) equal to (x) the weighted average of the
Expense Adjusted Mortgage Rate of the [Group II] Mortgage Loans then in effect
at the beginning of the related Due Period (not including for this purpose
any
[Group II] Mortgage Loans for which Principal Prepayments in Full have been
received and distributed in the month prior to that Distribution Date
minus
(y) a
percentage equal to the product of (i) a fraction, the numerator of which is
equal to the portion of the Net Swap Payment or Swap Termination Payment
allocated to the [Group II] Certificates based on the applicable Group
Percentage (other than a Swap Termination Payment caused by the Swap
Counterparty) made to the Swap Counterparty and the denominator of which is
equal to the aggregate Stated Principal Balance of the [Group II] Mortgage
Loans
and (ii) 12.]
[Group II]
Certificates:
The
Class [ ] Certificates, the Class [ ]
Certificates, Class [ ] Certificates and the
Class [ ] Certificates, collectively.
[Group II]
Mortgage Loans:
The
Mortgage Loans identified on the Mortgage Loan Schedule as [Group II]
Mortgage Loans.
[Group II]
Principal Payment Amount:
With
respect to any Distribution Date, the Principal Payment Amount multiplied by
the
Group Principal Allocation Percentage for the [Group II]
Certificates.
[Group II]
Senior Principal Payment Amount:
With
respect to any Distribution Date, the lesser of (i) the [Group II]
Principal Payment Amount for that Distribution Date and (ii) the excess of
(a) the aggregate Class Certificate Balance of the [Group II]
Certificates immediately prior to that Distribution Date over (b) the
lesser of (x) [ ]% of the aggregate Stated Principal
Balance of the [Group II] Mortgage Loans for that Distribution Date and
(y) the excess, if any, of the aggregate Stated Principal Balance of the
[Group II] Mortgage Loans for that Distribution Date over
[ ]% of the aggregate State Principal Balance of the
[Group II] Mortgage Loans as of the Cut-off Date.
-20-
[Group Available
Funds Cap:
The
[Group I] Available Funds Cap or the [Group II] Available Funds Cap,
as applicable.]
Group
Percentage:
For
any
Distribution Date and for each of the [Group I] Mortgage Loans and the [Group
II] Mortgage Loans, a fraction (expressed as a percentage) the numerator of
which is the aggregate Stated Principal Balance of the Mortgage Loans in such
Loan Group and the denominator of which is equal to the aggregate Stated
Principal Balance of all the Mortgage Loans as of such date.
Group Principal
Allocation Percentage:
With
respect to any Distribution Date, the percentage equivalent of a fraction,
determined as follows:
(i) with
respect to the [Group I] Certificates, a fraction, the numerator of which
is the portion of the Principal Remittance Amount for that Distribution Date
that is attributable to the principal received or advanced on the [Group I]
Mortgage Loans and the denominator of which is the Principal Remittance Amount
for that Distribution Date; and
(ii) with
respect to the [Group II] Certificates, a fraction, the numerator of
which is the portion of the Principal Remittance Amount for that Distribution
Date that is attributable to the principal received or advanced on the
[Group II] Mortgage Loans and the denominator of which is the Principal
Remittance Amount for that Distribution Date.
Group Subordinate
Amount:
For any
Distribution Date and (i) for the [Group I] Mortgage Loans, the excess
of the aggregate Stated Principal Balance of the [Group I] Mortgage Loans
as of the beginning of the related Due Period over the Class Certificate
Balance of the Class [ ] Certificates immediately prior to
the current Distribution Date and (ii) for the [Group II] Mortgage
Loans, the excess of the aggregate Stated Principal Balance of the
[Group II] Mortgage Loans as of the beginning of the related Due Period
over the aggregate Class Certificate Balance of the
Class [ ] and Class [ ] Certificates
immediately prior to such Distribution Date.
Independent:
When
used with respect to any accountants, a Person who is “independent” within the
meaning of Rule 2-01(B) of the Commission’s Regulation S-X. Independent means,
when used with respect to any other Person, a Person who (A) is in fact
independent of another specified Person and any Affiliate of such other Person,
(B) does not have any material direct or indirect financial interest in such
other Person or any Affiliate of such other Person, (C) is not connected with
such other Person or any Affiliate of such other Person as an officer, employee,
promoter, underwriter, trustee, partner, director or Person performing similar
functions and (D) is not a member of the immediate family of a Person defined
in
clause (B) or (C) above.
-21-
Index:
As to
each Adjustable Rate Mortgage Loan, the [ ] index from time to
time in effect for the adjustment of the Mortgage Rate as set forth in the
related Credit Line Agreement.
Initial
Certification:
As
defined in Section 2.02.
Initial
Sale Date:
The
date the Mortgage Loan was purchased by the Sponsor from the Mortgage Loan
Seller under the Master MLPSA.
Insurance
Policy:
With
respect to any Mortgage Loan included in the Trust Fund, any insurance policy,
including, but not limited to, any standard hazard insurance policy, flood
insurance policy, earthquake insurance policy, title insurance policy or Primary
Mortgage Insurance Policy, including all riders and endorsements thereto in
effect, including any replacement policy or policies.
Insurance
Proceeds:
With
respect to each Mortgage Loan, proceeds of Insurance Policies insuring the
Mortgage Loan or the related Mortgaged Property.
Interest
Accrual Period:
With
respect to each Class of LIBOR Certificates and the Corresponding
Class of [Lower Tier] REMIC Regular Interests and any Distribution Date,
the period commencing on the Distribution Date occurring in the month preceding
the month in which the current Distribution Date occurs and ending on the day
immediately preceding the current Distribution Date (or, in the case of the
first Distribution Date, the period from and including the Closing Date to
but
excluding such first Distribution Date). For purposes of computing interest
accruals on each Class of LIBOR Certificates, each Interest Accrual Period
has the actual number of days in such month and each year is assumed to have
360 days.
Interest
Carry Forward Amount:
As of
any Distribution Date and any Class of LIBOR Certificates, the sum of (i)
the excess of (a) the sum of (x) the Interest Payment Amount with respect
to the current Distribution Date (excluding any Basis Risk Carryover Amount
with
respect to such Class), plus (y) the portion of the Interest Payment Amount
from
Distribution Dates prior to the current Distribution Date remaining unpaid
immediately prior to the current Distribution Date, over (b) the amount
actually paid to such Class with respect to interest on such prior
Distribution Dates, and (ii) interest on the amount in clause (i) above at
the
applicable Interest Rate (to the extent permitted by applicable
law).
Interest
Margin:
Except
as set forth in the following sentence, with respect to each Class of
Regular Certificates, the following percentages: Class [ ]
Certificates, [ ]%; Class [ ] Certificates,
[ ]% and Class [ ] Certificates,
[ ]%. On the first Distribution Date after the Optional
Termination Date, the Interest Margins shall increase to the following
percentages: Class [ ] Certificates, [ ]%;
Class [ ] Certificates, [ ]% and
Class [ ] Certificates,
[ ]%.
Interest
Payment Amount:
With
respect to any Distribution Date for each Class of LIBOR Certificates, the
amount of interest accrued during the related Interest Accrual Period at the
applicable Interest Rate on the related Class Certificate Balance
immediately prior to such Distribution Date, as reduced by such Class’s share of
Net Prepayment Interest Shortfalls and Relief Act Interest Shortfalls for such
Distribution Date allocated to such Class pursuant to
Section 4.02.
-22-
Interest
Rate:
For
each Class of Certificates, each Class of [Upper Tier] REMIC Regular
Interest and each Class of [Lower Tier] REMIC Regular Interest, the per
annum rate set forth or calculated in the manner described in the Preliminary
Statement.
Interest
Remittance Amount:
With
respect to any Distribution Date and the Mortgage Loans in a Loan Group, that
portion of Available Funds attributable to interest relating to Mortgage Loans
in that Loan Group.
Investment
Account:
As
defined in Section 3.12(a).
Investor:
With
respect to each MERS Designated Mortgage Loan, the Person named on the MERS
System as the investor pursuant to the MERS Procedures Manual.
IRS:
The
Internal Revenue Service.
Late
Collections:
With
respect to any Mortgage Loan and any Due Period, all amounts received after
the
Determination Date immediately following such Due Period, whether as late
payments of Scheduled Payments or as Insurance Proceeds, Condemnation Proceeds,
Liquidation Proceeds, Subsequent Recoveries or otherwise, which represent late
payments or collections of principal and/or interest due (without regard to
any
acceleration of payments under the related Mortgage and Credit Line Agreement)
but delinquent for such Due Period and not previously recovered.
LIBOR:
With
respect to any Interest Accrual Period for the LIBOR Certificates, the rate
determined by the Securities Administrator on the related LIBOR Determination
Date on the basis of the offered rate for one-month U.S. dollar deposits as
such
rate appears on Telerate Page 3750 as of 11:00 a.m. (London time) on such
date; provided,
that if
such rate does not appear on Telerate Page 3750, the rate for such date
will be determined on the basis of the rates at which one-month U.S. dollar
deposits are offered by the Reference Banks at approximately 11:00 a.m.
(London time) on such date to prime banks in the London interbank market. In
such event, the Securities Administrator shall request the principal London
office of each of the Reference Banks to provide a quotation of its rate. If
at
least two such quotations are provided, the rate for that date will be the
arithmetic mean of the quotations (rounded upwards if necessary to the nearest
whole multiple of 1/16%). If fewer than two quotations are provided as
requested, the rate for that date will be the arithmetic mean of the rates
quoted by major banks in New York City, selected by the Securities Administrator
(after consultation with the Depositor), at approximately 11:00 a.m. (New
York City time) on such date for one-month U.S. dollar loans to leading European
banks.
LIBOR
Certificates:
As
specified in the Preliminary Statement.
LIBOR
Determination Date:
With
respect to any Interest Accrual Period for the LIBOR Certificates, the second
London Business Day preceding the commencement of such Interest Accrual
Period.
-23-
Liquidated
Mortgage Loan:
With
respect to any Distribution Date, a defaulted Mortgage Loan (including any
REO
Property) which was liquidated in the calendar month preceding the month of
such
Distribution Date and as to which the Servicer has certified to the Securities
Administrator that it has received all amounts it expects to receive in
connection with the liquidation of such Mortgage Loan including the final
disposition of an REO Property.
Liquidation
Proceeds:
Cash
received in connection with the liquidation of a Liquidated Mortgage Loan,
whether through a trustee’s sale, foreclosure sale or otherwise.
Loan
Group:
The
[Group I] Mortgage Loans or the [Group II] Mortgage Loans, as
applicable.
Loan-to-Value
Ratio
or
LTV:
As of
any date and as to any Mortgage Loan, the ratio (expressed as a
percentage) of the outstanding principal balance of the Mortgage Loan to
(a) in the case of a purchase, the lesser of (i) the sale price of the
Mortgaged Property and (ii) its appraised value at the time of sale or
(b) in the case of a refinancing or modification, the appraised value of
the Mortgaged Property at the time of the refinancing or
modification.
Loan
Purchase Price:
With
respect to any Mortgage Loan purchased from the Issuer pursuant to the Transfer
and Servicing Agreement or a Servicing Agreement, an amount equal to the sum
of
(i) the product of (A) [____]% and (B) the Principal Balance of such Mortgage
Loan as of the date of purchase, (ii) one month’s interest on the outstanding
Principal Balance of such Mortgage Loan as of the beginning of the preceding
Collection Period computed at the related Loan Rate less, if such Mortgage
Loan
is being purchased from the Issuer by the related Servicer, the Servicing Fee
Rate, (iii) any costs and damages incurred by the Issuer in connection with
any
violation by such Mortgage Loan of any predatory or abusive lending law and
(iv)
without duplication, the aggregate amount of all delinquent interest, all
advances made by the related Servicer and not subsequently recovered from the
related Mortgage Loan and any Reimbursement Amount related to such Mortgage
Loan.
Loan
Rate:
With
respect to any Mortgage Loan and as of any day, the per annum rate of interest
applicable under the related Credit Line Agreement to the calculation of
interest for such day on the Principal Balance of such Mortgage Loan.
London
Business Day:
Any day
on which dealings in deposits of United States dollars are transacted in the
London interbank market.
[Lower
Tier REMIC:
As
described in the Preliminary Statement.]
Managed
Amortization
Period:
With
respect to the Notes, the period commencing on the first Payment Date and ending
on the earlier to occur of (x) the 180th
Payment
Date and (y) the first Payment Date following the occurrence of a Rapid
Amortization Event with respect to the Notes.
Margin:
With
respect to each Mortgage Loan, the fixed percentage amount set forth in the
related Credit Line Agreement which amount is added to the Prime Rate in
accordance with the terms of the related Credit Line Agreement to determine
the
Loan Rate for such Mortgage Loan, subject to any maximum rate of
interest.
-24-
Master
MLPSA:
The
Master Loan Purchase and Servicing Agreement among the Mortgage Loan Seller,
the
Servicer and the Sponsor, dated [ ], which amends and restates
the Flow Sale and Servicing Agreement dated as of [ ] among the
same parties.
Master
Servicer:
[ ], and if a successor master servicer is appointed hereunder,
such successor.
Master
Servicer Event of Default:
As
defined in Section 9.06.
Master
Servicing Fee:
As to
any Distribution Date and each Mortgage Loan, an amount equal to
1/12th
the
product of (a) the Master Servicing Fee Rate and (b) the outstanding Stated
Principal Balance of such Mortgage Loan as of the prior Distribution Date (or
as
of the Cut-off Date in the case of the first Distribution Date).
Master
Servicing Fee Rate:
With
respect to any Mortgage Loan, a per annum rate equal to
[ ]%.
Master
Servicing Officer:
Any
officer of the Master Servicer involved in, or responsible for, the
administration and master servicing of the Mortgage Loans.
Maximum
Rate:
With
respect to each Adjustable Rate Mortgage Loan, a rate that (i) is set forth
on the Data Tape Information and in the related Credit Line Agreement and
(ii) is the maximum interest rate to which the Mortgage Rate on such
Mortgage Loan may be increased during the lifetime of such Mortgage
Loan.
MERS:
Mortgage Electronic Registration Systems, Inc., a Delaware corporation, and
its
successors in interest.
MERS
Designated Mortgage Loan:
Mortgage Loans for which (a) the Mortgage Loan Seller has designated or
will designate MERS as, and has taken or will take such action as is necessary
to cause MERS to be, the mortgagee of record, as nominee for the Mortgage Loan
Seller, in accordance with the MERS Procedure Manual and (b) the Mortgage
Loan Seller has designated or will designate the Trustee as the Investor on
the
MERS System.
MERS
Procedure Manual:
The
MERS Procedures Manual, as it may be amended, supplemented or otherwise modified
from time to time.
MERS®
System:
MERS
mortgage electronic registry system, as more particularly described in the
MERS
Procedures Manual.
MIN:
The
Mortgage Identification Number of Mortgage Loans registered with MERS on the
MERS® System.
Minimum
Mortgage Rate:
With
respect to each Adjustable Rate Mortgage Loan, a rate that (i) is set forth
on the Data Tape Information and in the related Credit Line Agreement and
(ii) is the minimum interest rate to which the Mortgage Rate on such
Mortgage Loan may be decreased during the lifetime of such Mortgage
Loan.
-25-
Monthly
Statement:
The
statement delivered to the Certificateholders pursuant to
Section 4.03.
Moody’s:
Xxxxx’x
Investors Service, Inc. If Xxxxx’x is designated as a Rating Agency in the
Preliminary Statement, for purposes of Section 12.05(c) the address for
notices to Moody’s shall be Xxxxx’x Investors Service, Inc., 00 Xxxxxx Xxxxxx,
Xxx Xxxx, Xxx Xxxx 00000, Attention: [ ], or such other address
as Moody’s may hereafter furnish to the Depositor and the Securities
Administrator.
Mortgage:
The
mortgage, deed of trust or other instrument identified on the Mortgage Loan
Schedule as securing a Credit Line Agreement.
Mortgage
File:
The
items pertaining to a particular Mortgage Loan contained in either the Servicing
File or Custodial File.
Mortgage
Loan:
An
individual Mortgage Loan that 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 Scheduled Payments, Principal Prepayments, Liquidation
Proceeds, Subsequent Recoveries, Condemnation Proceeds, Insurance Proceeds,
REO
Disposition proceeds, Prepayment Charges, and all other rights, benefits,
proceeds and obligations arising from or in connection with such Mortgage Loan,
excluding replaced or repurchased Mortgage Loans.
Mortgage
Loan Schedule:
A
schedule of Mortgage Loans prepared by the Depositor, delivered to the Trustee
on the Closing Date and referred to on Schedule I, such schedule setting
forth for each Loan Group the Data Tape Information with respect to each
Mortgage Loan.
Mortgage
Loan Seller:
[ ], and its successors in interest.
Credit
Line Agreement:
The
note or other evidence of the indebtedness of a Mortgagor under a Mortgage
Loan.
Mortgage
Rate:
The
annual rate of interest borne on a Credit Line Agreement, which shall be
adjusted from time to time.
Mortgaged
Property:
With
respect to each Mortgage Loan, the real property (or leasehold estate, if
applicable) identified on the Mortgage Loan Schedule as securing repayment
of
the debt evidenced by the related Credit Line Agreement.
Mortgagor:
The
obligor(s) on a Credit Line Agreement.
Net
Monthly Excess Cash Flow:
For any
Distribution Date, the amount of interest and principal remaining for
distribution pursuant to subsection 4.02[ ] (before giving
effect to distributions pursuant to such subsection).
-26-
Net
Prepayment Interest Shortfall:
For any
Distribution Date, the amount by which the sum of the Prepayment Interest
Shortfalls for such Distribution Date exceeds the sum of Compensating Interest
payments made with respect to such Distribution Date.
[Net
Swap Payment:
With
respect to each Swap Payment Date, the net payment (not including any Swap
Termination Payment) required to be made pursuant to the terms of the Swap
Agreement plus any unpaid amounts due on previous Swap Payment Dates and accrued
interest thereon as provided in the Swap Agreement, as calculated by the Swap
Counterparty and furnished to the Securities Administrator.]
Net
WAC Rate:
With
respect to any Distribution Date (and the related Interest Accrual Period),
a
per annum rate equal to the weighted average of the Net Mortgage Rates of the
Mortgage Loans as of the first day of the related Due Period (not including
for
this purpose Mortgage Loans for which Principal Prepayments in Full have been
received and distributed in the month prior to that Distribution
Date).
NIM
Issuer:
The
entity established as the issuer of the NIM Securities.
NIM
Securities:
Any
debt securities secured or otherwise backed by some or all of the Class [X]
and Class [P] Certificates that are rated by any Rating
Agency.
NIM
Trustee:
The
Indenture trustee for the NIM Securities.
Non-Delay
Certificates:
As
specified in the Preliminary Statement.
Non-Permitted
Transferee:
A
Person other than a Permitted Transferee.
Non-U.S.
Person:
A
person that is not a U.S. Person.
Nonrecoverable
P&I Advance:
Any
P&I Advance previously made or proposed to be made in respect of a Mortgage
Loan or REO Property that, in the good faith business judgment (taking into
account Accepted Servicing Practices) of the Servicer, the Master Servicer,
as
successor servicer, or any successor master servicer including the Trustee,
as
applicable, will not or, in the case of a proposed P&I Advance, would not be
ultimately recoverable from related Late Collections on such Mortgage Loan
or
REO Property as provided herein.
Nonrecoverable
Servicing Advance:
Any
Servicing Advances previously made or proposed to be made in respect of a
Mortgage Loan or REO Property, which, in accordance with Accepted Servicing
Practices, will not or, in the case of a proposed Servicing Advance, would
not
be ultimately recoverable from related Late Collections.
Notice
of Final Distribution:
The
notice to be provided by the Securities Administrator pursuant to
Section 11.02 to the effect that final distribution on any of the
Certificates shall be made only upon presentation and surrender
thereof.
Offered
Certificates:
As
specified in the Preliminary Statement.
-27-
Officer’s
Certificate:
A
certificate signed by an officer of the Servicer or the Master Servicer, as
applicable, with responsibility for the servicing of the Mortgage Loans and
listed on a list delivered to the Trustee and the Securities Administrator
pursuant to this Agreement.
Opinion
of Counsel:
A
written opinion of counsel, who may be in-house counsel for the Servicer or
any
Subservicer, reasonably acceptable to the Trustee and/or the Securities
Administrator, as applicable (and/or such other Persons as may be set forth
herein); provided,
that
any Opinion of Counsel relating to (a) qualification of any REMIC created
hereby or (b) compliance with the REMIC Provisions, must be (unless
otherwise stated in such Opinion of Counsel) an opinion of counsel who
(i) is in fact independent of the Servicer or the Master Servicer,
(ii) does not have any material direct or indirect financial interest in
the Servicer or the Master Servicer or in an affiliate of either and
(iii) is not connected with the Servicer or the Master Servicer as an
officer, employee, director or person performing similar functions.
Option
to Purchase:
On the
first Optional Termination Date, the Master Servicer, at the option of and
upon
instruction by the Depositor, shall purchase
the Mortgage Loans. If the Depositor fails to instruct the Master Servicer
to
purchase the Mortgage Loan, the Master Servicer has the right and, at its own
option, may purchase the Mortgage Loans on the first Distribution Date following
the Distribution Date on which the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period is less than or
equal to [ ]% of the aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.
Optional
Termination Date:
Any
Distribution Date on which the aggregate Stated Principal Balance of the
Mortgage Loans, as of the last day of the related Due Period, is less than
or
equal to [ ]% of the Cut-off Date Pool Principal
Balance.
OTS:
Office
of Thrift Supervision, and any successor thereto.
Outstanding:
With
respect to the Certificates as of any date of determination, all Certificates
theretofore executed and authenticated under this Agreement except:
(i) Certificates
theretofore canceled by the Securities Administrator or delivered to the
Securities Administrator for cancellation; and
(ii) Certificates
in exchange for which or in lieu of which other Certificates have been executed
and delivered by the Securities Administrator pursuant to this
Agreement.
Outstanding
Mortgage Loan:
As of
any Due Date, a Mortgage Loan with a Stated Principal Balance greater than
zero
which was not the subject of a Principal Prepayment in Full prior to such Due
Date and which did not become a Liquidated Mortgage Loan prior to such Due
Date.
Overcollateralization
Amount:
As of
any Distribution Date, the excess, if any, of (a) the aggregate Stated
Principal Balance of the Mortgage Loans for such Distribution Date over
(b) the aggregate of the Class Certificate Balances of the LIBOR
Certificates as of such Distribution Date (after giving effect to the payment
of
the Principal Remittance Amount on such Certificates on such Distribution
Date).
-28-
Overcollateralization
Deficiency:
With
respect to any Distribution Date, the excess, if any, of (a) the
Overcollateralization Target Amount applicable to such Distribution Date over
(b) the Overcollateralization Amount applicable to such Distribution
Date.
Overcollateralization
Reduction Amount:
With
respect to any Distribution Date, an amount equal to the lesser of (a) the
Excess Overcollateralization Amount and (b) the Net Monthly Excess Cash
Flow.
Overcollateralization
Target Amount:
Prior
to the Stepdown Date, an amount equal to [ ]% of the aggregate
Stated Principal Balance of the Mortgage Loans as of the Cut-off Date. On and
after the Stepdown Date, an amount equal to the greater of (i)
[ ]% of the aggregate Stated Principal Balance of the Mortgage
Loans as of the last day of the related Due Period and (ii)
$[ ]; provided,
however,
that
if, on any Distribution Date, a Trigger Event exists, the Overcollateralization
Target Amount shall not be reduced to the applicable percentage of then current
aggregate Stated Principal Balance of the Mortgage Loans until the Distribution
Date on which a Trigger Event no longer exists but rather shall remain the
Overcollateralization Target Amount as determined for the immediately preceding
Distribution Date. When the Class Certificate Balance of each Class of
LIBOR Certificates has been reduced to zero, the Overcollateralization Target
Amount will thereafter equal zero.
Ownership
Interest:
As to
any Residual Certificate, any ownership interest in such Certificate including
any interest in such Certificate as the Holder thereof and any other interest
therein, whether direct or indirect, legal or beneficial.
P&I
Advance:
As to
any Mortgage Loan or REO Property, any advance made by the Servicer in respect
of any Remittance Date representing the aggregate of all payments of principal
and interest, net of the Servicing Fee, that were due during the related Due
Period on the Mortgage Loans and that were delinquent on the related
Determination Date, plus certain amounts representing assumed payments not
covered by any current net income on the Mortgaged Properties acquired by
foreclosure or deed in lieu of foreclosure as determined pursuant to
Section 4.01.
PCAOB:
The
Public Company Accounting Oversight Board.
Percentage
Interest:
As to
any Certificate, the percentage interest evidenced thereby in distributions
required to be made on the related Class, such percentage interest being set
forth on the face thereof or equal to the percentage obtained by dividing the
Denomination of such Certificate by the aggregate of the Denominations of all
Certificates of the same Class.
Permitted
Investments:
Any one
or more of the following obligations or securities acquired at a purchase price
of not greater than par, regardless of whether issued by the Servicer, the
Securities Administrator, the Trustee or any of their respective
Affiliates:
(i) direct
obligations of, or obligations fully guaranteed as to timely payment of
principal and interest by, the United States or any agency or instrumentality
thereof, provided such obligations are backed by the full faith and credit
of
the United States;
-29-
(ii) demand
and time deposits in, certificates of deposit of, or bankers’ acceptances (which
shall each have an original maturity of not more than 90 days and, in the
case of bankers’ acceptances, shall in no event have an original maturity of
more than 365 days or a remaining maturity of more than 30 days)
denominated in United States dollars and issued by, any Depository Institution
and rated F1+ by Fitch, A-1+ by Standard & Poor’s and P-1 by
Moody’s;
(iii) repurchase
obligations with respect to any security described in clause (i) above
entered into with a Depository Institution (acting as principal);
(iv) securities
bearing interest or sold at a discount that are issued by any corporation
incorporated under the laws of the United States of America or any state thereof
and that are rated by Fitch, Moody’s and Standard & Poor’s (in each case, to
the extent they are designated as Rating Agencies in the Preliminary Statement),
and by each other Rating Agency that rates such securities, in its highest
long-term unsecured rating categories at the time of such investment or
contractual commitment providing for such investment;
(v) commercial
paper (including both non-interest-bearing discount obligations and
interest-bearing obligations payable on demand or on a specified date not more
than 30 days after the date of acquisition thereof) that is rated by Fitch,
Moody’s and Standard & Poor’s (in each case, to the extent they are
designated as Rating Agencies in the Preliminary Statement), and by each other
Rating Agency that rates such securities, in its highest short-term unsecured
debt rating available at the time of such investment;
(vi) units
of
money market funds, including money market funds managed or advised by the
Trustee, the Securities Administrator or an Affiliate thereof, that have been
rated “Aaa” by Moody’s, “AAA” by Standard & Poor’s and, if rated by
Fitch, “AAA” by Fitch; and
(vii) if
previously confirmed in writing to the Securities Administrator, any other
demand, money market or time deposit, or any other obligation, security or
investment, as may be acceptable to each of the Rating Agencies as a permitted
investment of funds backing “Aaa” or “AAA” rated securities;
provided,
however,
that no
instrument described hereunder shall evidence either the right to receive
(a) only interest with respect to the obligations underlying such
instrument or (b) both principal and interest payments derived from
obligations underlying such instrument and the interest and principal payments
with respect to such instrument provide a yield to maturity at par greater
than
120.00% of the yield to maturity at par of the underlying
obligations.
-30-
Permitted
Transferee:
Any
Person other than (i) the United States, any State or political subdivision
thereof, or any agency or instrumentality of any of the foregoing, (ii) a
foreign government, international organization or any agency or instrumentality
of either of the foregoing, (iii) an organization (except certain farmers’
cooperatives described in Section 521 of the Code) which is exempt from tax
imposed by Chapter 1 of the Code (including the tax imposed by Section 511
of the Code on unrelated business taxable income) on any excess inclusions
(as
defined in Section 860E(c)(1) of the Code) with respect to any Residual
Certificate, (iv) rural electric and telephone cooperatives described in
Section 1381(a)(2)(C) of the Code, (v) a Person that is a Disqualified
Non-U.S. Person or a U.S. Person with respect to whom income from a Residual
Certificate is attributable to a foreign permanent establishment or fixed base,
within the meaning of an applicable income tax treaty, of such Person or any
other U.S. Person, (vi) an “electing large partnership” within the meaning
of Section 775 of the Code and (vii) any other Person so designated by
the Depositor based upon an Opinion of Counsel that the Transfer of an Ownership
Interest in a Residual Certificate to such Person may cause either the Lower
Tier REMIC or the Upper Tier REMIC to fail to qualify as a REMIC at any time
that the Certificates are outstanding. The terms “United States”, “State” and
“international organization” shall have the meanings set forth in
Section 7701 of the Code or successor provisions. A corporation will not be
treated as an instrumentality of the United States or of any State or political
subdivision thereof for these purposes if all of its activities are subject
to
tax and, with the exception of Xxxxxxx Mac, a majority of its board of directors
is not selected by such government unit.
Person:
Any
individual, corporation, partnership, joint venture, association, limited
liability company, joint-stock company, trust, unincorporated organization
or
government, or any agency or political subdivision thereof.
Physical
Certificates:
As
specified in the Preliminary Statement.
Pool
Stated Principal Balance:
As to
any Distribution Date, the aggregate of the Stated Principal Balances of the
Mortgage Loans for such Distribution Date that were Outstanding Mortgage Loans
on the Due Date in the related Due Period.
Prepayment
Charge:
Any
prepayment premium, penalty or charge collected by the Servicer with respect
to
a Mortgage Loan from a Mortgagor in connection with any Principal Prepayment
pursuant to the terms of the related Credit Line Agreement.
Prepayment
Interest Excess:
With
respect to any Distribution Date, any interest collected by the Servicer with
respect to any Mortgage Loan as to which a Principal Prepayment occurs from
the
[ ] day of the month through the [ ] day of the
month in which such Distribution Date occurs and that represents interest that
accrues from the 1st day of such month to the date of such Principal
Prepayment.
Prepayment
Interest Shortfall:
With
respect to any Distribution Date, the sum of, for each Mortgage Loan that was,
during the portion of the related Prepayment Period from the first day of such
Prepayment Period through the last day of the month preceding the month in
which
such Distribution Date occurs, the subject of a Principal Prepayment which
is
not accompanied by an amount equal to one month of interest that would have
been
due on such Mortgage Loan on the Due Date that occurs during such Prepayment
Period and which was applied by the Servicer to reduce the outstanding principal
balance of such Mortgage Loan on a date preceding such Due Date, an amount
equal
to the product of (a) the Mortgage Rate net of the Servicing Fee Rate for
such Mortgage Loan, (b) the amount of the Principal Prepayment for such
Mortgage Loan, (c) 1/360 and (d) the number of days commencing on the
date on which such Principal Prepayment was applied and ending on the last
day
of the calendar month in which the related Prepayment Period
begins.
-31-
Prepayment
Period:
With
respect to any Distribution Date and any Principal Prepayment, the period
commencing on the [ ] day of the month preceding the month in
which such Distribution Date occurs (or in the case of the first Distribution
Date, commencing on the Cut-off Date) and ending on the [ ]th
day of the month in which that Distribution Date occurs.
Primary
Mortgage Insurance Policy:
Any
mortgage guaranty insurance, if any, on an individual Mortgage Loan as evidenced
by a policy or certificate, whether such policy is obtained by the originator,
the lender or the borrower.
Principal
Payment Amount:
For any
Distribution Date, the sum of (i) the Basic Principal Payment Amount for
such Distribution Date and (ii) the Extra Principal Payment Amount for such
Distribution Date.
Principal
Prepayment:
Any
full or partial payment or other recovery of principal on a Mortgage Loan
(including upon liquidation of a Mortgage Loan) that is received in advance
of
its scheduled Due Date, excluding any Prepayment Charge thereon, and that 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 in Full:
Any
Principal Prepayment made by a Mortgagor of the entire principal balance of
a
Mortgage Loan.
Principal
Remittance Amount:
With
respect to any Distribution Date, the amount equal to the sum of the following
amounts (without duplication) with respect to the related Due Period:
(i) each scheduled payment of principal on a Mortgage Loan due during such
Due Period and received by the Servicer on or prior to the related Determination
Date or advanced by the Servicer for the related Remittance Date, (ii) all
Principal Prepayments received during the related Prepayment Period;
(iii) all net Liquidation Proceeds, Condemnation Proceeds and Insurance
Proceeds on the Mortgage Loans allocable to principal, and all Subsequent
Recoveries, actually collected by the Servicer during the related Prepayment
Period; (iv) the portion of the Repurchase Price allocable to principal
with respect to each Mortgage Loan repurchased by the Mortgage Loan Seller
or
the Sponsor, as the case may be, that was repurchased on or prior to the related
Determination Date; and (v) all Substitution Adjustment Amounts allocable
to principal with respect to the substitutions of Mortgage Loans that occur
on
or prior to the related Determination Date; (vi) the allocable portion of
the proceeds received with respect to the termination of the Trust Fund pursuant
to clause (a) of Section 11.01 (to the extent such proceeds
relate to principal).
Private
Certificates:
As
specified in the Preliminary Statement.
Prospectus
Supplement:
The
Prospectus Supplement, dated [ ], relating to the Offered
Certificates.
-32-
PTCE:
As
defined in Section 5.02(b).
Purchase
Agreement:
The
mortgage loan purchase agreement, dated as of [ ], between the
Depositor and the Sponsor.
Purchase
Price:
With
respect to all Additional Balances, at least 100% of the principal balance
of
such Additional Balances.
Rapid
Amortization Event:
Any of
those “Rapid Amortization Events” described in Section 7.01 of this
Agreement.
Rapid
Amortization Period:
With
respect to the Certificates, the period which immediately follows the end of
the
Managed Amortization Period.
Rating
Agency:
Each of
the Rating Agencies specified in the Preliminary Statement. If such organization
or a successor is no longer in existence, “Rating Agency” shall be such
nationally recognized statistical rating organization, or other comparable
Person, as is designated by the Depositor, notice of which designation shall
be
given to the Trustee and the Securities Administrator. References herein to
a
given rating or rating category of a Rating Agency shall mean such rating
category without giving effect to any modifiers. For purposes of
Section 12.05(c), the addresses for notices to each Rating Agency shall be
the address specified therefor in the definition corresponding to the name
of
such Rating Agency, or such other address as either such Rating Agency may
hereafter furnish to the Depositor and the Securities
Administrator.
Realized
Losses:
With
respect to any date of determination and any Liquidated Mortgage Loan, the
amount, if any, by which (a) the unpaid principal balance of such
Liquidated Mortgage Loan together with accrued and unpaid interest thereon
exceeds (b) the Liquidation Proceeds with respect thereto net of the
expenses incurred by the Servicer in connection with the liquidation of such
Liquidated Mortgage Loan and net of the amount of unreimbursed Servicing
Advances with respect to such Liquidated Mortgage Loan.
[Record
Date:
With
respect to any Distribution Date, the close of business on the Business Day
immediately preceding such Distribution Date; provided,
however,
that,
for any Certificate issued in definitive form, the Record Date shall be the
close of business on the last Business Day of the month preceding the month
in
which such applicable Distribution Date occurs (or, in the case of the first
Distribution Date, the Closing Date).]
Reference
Bank:
As
defined in Section 4.04.
Regulation
AB:
Subpart
[ ] - Asset Backed Securities (Regulation AB),
[ ] C.F.R. §§[ ], 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. [ ], [ ] Fed. Reg.
[ ], [ ] ([ ]) or by the
staff of the Commission, or as may be provided by the Commission or its staff
from time to time.
Regular
Certificates:
As
specified in the Preliminary Statement.
-33-
Relevant
Servicing Criteria:
The
Servicing Criteria applicable to the various parties, as set forth on Exhibit
S
attached hereto. For clarification purposes, multiple parties can have
responsibility for the same Relevant Servicing Criteria. With respect to a
Servicing Function Participant engaged by the Master Servicer, the Securities
Administrator, the Custodian, the Trustee or the Servicer, the term “Relevant
Servicing Criteria” may refer to a portion of the Relevant Servicing Criteria
applicable to such parties.
Relief
Act Interest Shortfall:
With
respect to any Distribution Date and any Mortgage Loan, any reduction in the
amount of interest collectible on such Mortgage Loan for the most recently
ended
Due Period as a result of the application of the Servicemembers Civil Relief
Act
or any applicable similar state statutes.
REMIC:
Each
pool of assets in the Trust Fund designated as a REMIC pursuant to the
Preliminary Statement.
[REMIC
1:
As
described in the Preliminary Statement.]
[REMIC
2:
As
described in the Preliminary Statement.]
[REMIC
2 Net Funds Cap:
For any
Distribution Date (and the related Interest Accrual Period) and any Class of
Certificates, an amount equal to (i) the weighted average of the interest rates
on the Lower Tier Interests in REMIC 2 (other than any interest-only regular
interest), weighted in proportion to their Class Principal Amounts as of the
beginning of the related Interest Accrual Period, multiplied by (ii) an amount
equal to (a) 30, divided by (b) the actual number of days in the Interest
Accrual Period.]
[REMIC
3:
As
described in the Preliminary Statement.]
REMIC
Provisions:
Provisions of the federal income tax law relating to real estate mortgage
investment conduits, which appear at Sections 860A through 860G of
Subchapter M of Chapter 1 of the Code, and related provisions, and regulations
promulgated thereunder, as the foregoing may be in effect from time to time
as
well as provisions of applicable state laws.
Remittance
Date:
With
respect to any Distribution Date, the [ ] day of the month in
which such Distribution Date occurs, or, if the [ ] is not a
Business Day, the immediately succeeding Business Day.
REO
Disposition:
The
final sale by the Servicer of any REO Property.
REO
Imputed Interest:
As to
any REO Property, for any period, an amount equivalent to interest (at the
Mortgage Rate net of the applicable Servicing Fee Rate that would have been
applicable to the related Mortgage Loan had it been outstanding) on the unpaid
principal balance of the Mortgage Loan as of the date of acquisition thereof
(as
such balance is reduced pursuant to Section 3.17 by any income from the REO
Property treated as a recovery of principal).
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REO
Mortgage Loan:
A
Mortgage Loan where title to the related Mortgaged Property has been obtained
by
the Servicer in the name of the Trustee on behalf of the
Certificateholders.
REO
Property:
A
Mortgaged Property acquired by the Trust Fund through foreclosure or
deed-in-lieu of foreclosure in connection with a defaulted Mortgage
Loan.
Replacement
Receipts:
As
defined in Section 4.08.
Replacement
Receipts Account:
As
defined in Section 4.08.
Reportable
Event:
As
defined in Section 8.12(a)(iii).
Reporting
Servicer:
As
defined in Section 8.12(a)(ii).
Repurchase
Price:
With
respect to any Mortgage Loan, an amount equal to the sum of (i) the unpaid
principal balance of such Mortgage Loan as of the date of repurchase,
(ii) interest on such unpaid principal balance of such Mortgage Loan at the
Mortgage Rate from the last date through which interest has been paid to the
date of repurchase, (iii) all unreimbursed Servicing Advances and
(iv) all expenses incurred by the Master Servicer, the Servicer or Trustee
arising out of the Master Servicer’s, the Servicer’s or Trustee’s enforcement of
the Mortgage Loan Seller’s repurchase obligation hereunder.
Request
for Release:
The
Request for Release submitted by the Servicer to the Trustee, substantially
in
the form of Exhibit J.
Residual
Certificates:
As
specified in the Preliminary Statement.
Responsible
Officer:
When
used with respect to the Trustee, the Securities Administrator, the Master
Servicer, any vice president, any assistant vice president, any assistant
secretary, any assistant treasurer, any associate, or any other officer of
the
Trustee, the Securities Administrator or the Master Servicer customarily
performing functions similar to those performed by any of the above designated
officers who at such time shall be officers to whom, with respect to a
particular matter, such matter is referred because of such officer’s knowledge
of and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Agreement.
Rolling
Three Month Delinquency Rate:
With
respect to any Distribution Date, the average of the Delinquency Rates for
each
of the three (or one or two, in the case of the first and second Distribution
Dates) immediately preceding calendar months.
Rule 144A
Letter:
As
defined in Section 5.02(b).
Xxxxxxxx-Xxxxx
Certification:
As
defined in Section 3.24.
Scheduled
Payment:
The
scheduled monthly payment on a Mortgage Loan due on any Due Date allocable
to
principal and/or interest on such Mortgage Loan which, unless otherwise
specified herein, shall give effect to any related Debt Service Reduction and
any Deficient Valuation that affects the amount of the monthly payment due
on
such Mortgage Loan.
-35-
Securities
Act:
The
Securities Act of 1933, as amended.
Securities
Administrator:
[ ], and if a successor securities administrator is appointed
hereunder, such successor.
Securities
Administrator Float Period:
With
respect to the Distribution Date and the related amounts in the Distribution
Account, the period commencing on the Remittance Date immediately preceding
such
Distribution Date and ending on such Distribution Date.
Senior
Interest Payment Amount:
With
respect to any Distribution Date and any Class of Class [A]
Certificates, the sum of the Interest Payment Amount and the Interest Carry
Forward Amount, if any, for that Distribution Date for that Class.
Servicer:
[ ], and its successors in interest, and if a successor
servicer is appointed hereunder, such successor.
Servicer
Remittance Report:
As
defined in Section 4.03(d).
Service(s)(ing):
In
accordance with Regulation AB, the act of servicing and administering the
Mortgage Loans or any other assets of the Trust by an entity that meets the
definition of “servicer’ set forth in Item 1101 of Regulation AB and is subject
to the disclosure requirements set forth in Item 1108 of Regulation AB. For
clarification purposes, any uncapitalized occurrence of this term in this
Agreement shall have the meaning commonly understood by participants in the
residential mortgage-backed securitization market.
Servicing
Advances:
The
reasonable “out-of-pocket” costs and expenses (including legal fees) incurred by
the Servicer in the performance of its servicing obligations in connection
with
a default, delinquency or other unanticipated event, including, but not limited
to, the cost of (i) the maintenance, preservation, restoration, inspection
and protection of a Mortgaged Property, (ii) any enforcement or judicial
proceedings, including foreclosures and litigation, in respect of a particular
Mortgage Loan, (iii) the management (including reasonable fees in
connection therewith) and liquidation of any REO Property and (iv) the
performance of its obligations under Sections 3.01, 3.09, 3.13 and 3.15.
The Servicing Advances shall also include any reasonable “out-of-pocket” costs
and expenses (including legal fees) incurred by the Servicer in connection
with
executing and recording instruments of satisfaction, deeds of reconveyance
or
Assignments of Mortgage in connection with any satisfaction or foreclosure
in
respect of any Mortgage Loan to the extent not recovered from the Mortgagor
or
otherwise payable under this Agreement and obtaining or correcting any legal
documentation required to be included in the Mortgage File and necessary for
the
Servicer to perform its obligations under this Agreement. The Servicer shall
not
be required to make any Nonrecoverable Servicing Advances.
Servicing
Criteria:
The
criteria set forth in paragraph (d) of Item 1122 of Regulation AB, as such
may
be amended from time to time.
-36-
Servicing
Fee:
With
respect to each Mortgage Loan and for any calendar month, an amount equal to
one
month’s interest (or in the event of any payment of interest which accompanies a
Principal Prepayment made by the Mortgagor during such calendar month, interest
for the number of days covered by such payment of interest) at the Servicing
Fee
Rate on the applicable Stated Principal Balance of such Mortgage Loan as of
the
first day of such calendar month. Such fee shall be payable monthly, and shall
be prorated for any portion of a month during which the Mortgage Loan is
serviced by the Servicer under this Agreement. The Servicing Fee is payable
solely from the interest portion (including recoveries with respect to interest
from Liquidation Proceeds, Subsequent Recoveries, Insurance Proceeds,
Condemnation Proceeds and proceeds received with respect to REO Properties)
of such Scheduled Payment collected by the Servicer, or as otherwise provided
under Section 3.11.
Servicing
Fee Rate:
[ ]% per annum.
Servicing
File:
With
respect to each Mortgage Loan, the file retained by the Servicer consisting
of
originals or copies of all documents in the Mortgage File which are not
delivered to the Custodian on behalf of the Trustee in the Custodial File and
copies of the Mortgage Loan Documents set forth in Exhibit K
hereto.
Servicing
Function Participant:
Any
Sub-Servicer, Subcontractor or any other Person, other than each Servicer,
the
Master Servicer, the Trustee and the Securities Administrator, that is
performing any activities addressed by the Servicing Criteria, unless such
Person’s activities relate only to 5% or less of the Mortgage Loans.
Servicing
Officer:
Any
officer of the Servicer involved in, or responsible for, the administration
and
servicing of the Mortgage Loans whose name and facsimile signature appear on
a
list of servicing officers furnished to the Master Servicer and the Trustee
by
the Servicer on the Closing Date pursuant to this Agreement, as such list may
from time to time be amended.
Similar
Law:
As
defined in Section 5.02(b).
60+
Day Delinquent Mortgage Loan:
Each
Mortgage Loan with respect to which any portion of a Scheduled Payment is,
as of
the last day of the prior Due Period, two months or more past due (without
giving effect to any grace period), each Mortgage Loan in foreclosure, each
Mortgage Loan related to REO Property and each Mortgage Loan where the related
Mortgagor has filed for bankruptcy.
Sponsor:
[ ],
a [ ], and its successors in interest.
Standard &
Poor’s:
Standard & Poor’s Ratings Services, a division of The XxXxxx-Xxxx
Companies, Inc. If Standard & Poor’s is designated as a Rating Agency
in the Preliminary Statement, for purposes of Section 12.05(c) the address
for notices to Standard & Poor’s shall be Standard & Poor’s,
00 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Residential Mortgage
Surveillance Group -
[ ],
or such other address as Standard & Poor’s may hereafter furnish to the
Depositor and the Securities Administrator.
Standard &
Poor’s Glossary:
The
Standard & Poor’s LEVELS® Glossary, as may be in effect from time to
time.
-37-
Startup
Day:
The
Closing Date.
Stated
Principal Balance:
As to
each Mortgage Loan and as of any date of determination, (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 remitted to the Securities Administrator with
respect to the related Mortgage Loan representing payments or recoveries of
principal including advances in respect of scheduled payments of principal.
For
purposes of any Distribution Date, the Stated Principal Balance of any Mortgage
Loan will give effect to any scheduled payments of principal received by the
Servicer on or prior to the related Determination Date or advanced by the
Servicer for the related Remittance Date and any unscheduled principal payments
and other unscheduled principal collections received during the related
Prepayment Period, and the Stated Principal Balance of any Mortgage Loan that
has prepaid in full or has become a Liquidated Mortgage Loan during the related
Prepayment Period shall be zero.
Stepdown
Date:
The
earlier to occur of (i) the first Distribution Date following the Distribution
Date on which the aggregate Class Certificate Balances of the
Class [A] Certificates have been reduced to zero and (ii) the later to
occur of (a) the Distribution Date in [ ] and (b) the first
Distribution Date on which the Credit Enhancement Percentage for the Class
[A]
Certificates (calculated for this purpose only after taking into account
payments of principal applied to reduce the Stated Principal Balance of the
Mortgage Loans for that Distribution Date but prior to any applications of
Principal Payment Amounts to the Certificates on that Distribution Date) is
greater than or equal to [ ]%.
Subcontractor:
Any
vendor, subcontractor or other Person that is not responsible for the overall
servicing of the 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 any Servicer (or a Sub-Servicer of any Servicer),
the Master Servicer, the Trustee or the Securities Administrator.
Subsequent
Recovery:
With
respect to any Mortgage Loan or related Mortgaged Property that became a
Liquidated Mortgage Loan or was otherwise disposed of, all amounts received
in
respect of such Liquidated Mortgage Loan after an Applied Realized Loss Amount
related to such Mortgage Loan or Mortgaged Property is allocated to reduce
the
Class Certificate Balance of any Class of Class [M] Certificates.
Any Subsequent Recovery that is received during a Prepayment Period will be
included as part of the Principal Remittance Amount for the related Distribution
Date.
Sub-Servicer:
Any
Person that (i) is considered to be a Servicing Function Participant, (ii)
services Mortgage Loans on behalf of any Servicer, and (iii) is responsible
for
the performance (whether directly or through sub-servicers or Subcontractors)
of
Servicing functions required to be performed under this Agreement, any related
servicing agreement or any sub-servicing agreement that are identified in Item
1122(d) of Regulation AB.
Subservicing
Account:
As
defined in Section 3.08.
Subservicing
Agreement:
As
defined in Section 3.02(a).
-38-
Substitute
Mortgage Loan:
A
Mortgage Loan substituted by the Mortgage Loan Seller or the Sponsor for a
Deleted Mortgage Loan which must, on the date of such substitution, as confirmed
in a Request for Release, substantially in the form of Exhibit J,
(i) have a Stated Principal Balance, after deduction of all Scheduled
Payments due in the month of substitution, not in excess of the Stated Principal
Balance of the Deleted Mortgage Loan; (ii) be accruing interest at a rate
not lower than and not more than [1.00]% 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; and (v) comply
with each representation and warranty set forth in
Section 2.03.
Substitution
Adjustment Amount: As
defined in Section 2.03.
Supplemental
Interest Trust:
The
corpus of a trust created pursuant to Section 4.06 of this Agreement and
designated as the “Supplemental Interest Trust,” consisting of the Swap
Agreement, the Supplemental Interest Trust Account, the right to receive the
Class X Distributable Amount as provided in Section 4.02(a)(iii)(F), the Class
LT3-I Interest in REMIC 3 and the right to receive Class I
Shortfalls.
Supplemental
Interest Trust Account:
The
account created pursuant to Section 4.06 of this Agreement.
Supplemental
Interest Trust Amount:
With
respect to each Distribution Date and the related Swap Payment Date, the sum
of
any Net Swap Payment and any Swap Termination Payment deposited into the
Supplemental Interest Trust Account.
Swap
Agreement:
The
interest rate swap agreement entered into by the Supplemental Interest Trust,
which agreement provides for, among other things, a Net Swap Payment to be
paid
pursuant to the conditions provided therein, together with any schedules,
confirmations or other agreements relating thereto, attached hereto as Exhibit
O.
Swap
Counterparty:
The
counterparty to the Supplemental Interest Trust under the Swap Agreement, and
any successor in interest or assigns. Initially, the Swap Counterparty shall
be
the
[ ].
Swap
Counterparty Trigger Event:
A Swap
Counterparty Trigger Event shall have occurred if any of a Swap Default with
respect to which the Swap Counterparty is a Defaulting Party, a Termination
Event with respect to which the Swap Counterparty is the sole Affected Party
or
an Additional Termination Event with respect to which the Swap Counterparty
is
the sole Affected Party has occurred.
Swap
Default:
Any of
the circumstances constituting an “Event of Default” under the Swap
Agreement.
Swap
LIBOR:
With
respect to any Distribution Date (and the Accrual Period relating to such
Distribution Date), the product of (i) the Floating Rate Option (as defined
in
the Swap Agreement) for the related Distribution Date, (ii) two, and (iii)
the
quotient of (a) the actual number of days in the Accrual Period for the LIBOR
Certificates and (b) 30, as calculated by the Swap Counterparty and furnished
to
the Securities Administrator.
-39-
Swap
Termination Payment:
Upon
the designation of an “Early Termination Date” as defined in the Swap Agreement,
the payment required to be made by the Supplemental Interest Trust to the Swap
Counterparty, or by the Swap Counterparty to the Supplemental Interest Trust,
as
applicable, pursuant to the terms of the Swap Agreement, and any unpaid amounts
due on previous Distribution Dates and accrued interest thereon as provided
in
the Swap Agreement, as calculated by the Swap Counterparty and furnished to
the
Securities Administrator.
Tax
Matters Person:
The
Holder of the Class R Certificates designated as “tax matters person” of
each REMIC created hereunder in the
manner provided under Treasury Regulations Section 1.860F-4(d) and Treasury Regulations
Section 301.6231(a)(7)-1.
Tax
Service Contract:
As
defined in Section 3.09(a).
Telerate
Page 3750:
The
display page currently so designated on the Bridge Telerate Service (or
such other page as may replace that page on that service for
displaying comparable rates or prices).
Termination
Price:
As
defined in Section 11.01.
Termination
Receipts:
As
defined in Section 4.08.
Termination
Receipts Account:
As
defined in Section 4.08.
Total
Monthly Excess Spread:
As to
any Distribution Date, an amount equal to the excess, if any, of (i) the
interest on the Mortgage Loans (other than Prepayment Interest Excesses)
received by the Servicer on or prior to the related Determination Date or
advanced by the Servicer for the related Remittance Date (net of Expense Fees)
over (ii) the sum of the amounts payable to the Certificates pursuant to
Section 4.02[ ] on such Distribution Date.
Transfer:
Any
direct or indirect transfer or sale of any Ownership Interest in a Residual
Certificate.
Transfer
Affidavit:
As
defined in Section 5.02(c).
Transferor
Certificate:
As
defined in Section 5.02(b).
[Trigger
Event:
Either
a Cumulative Loss Trigger Event or a Delinquency Trigger Event.]
Trust:
The
express trust created hereunder in Section 2.01(c).
Trust
Fund:
The
corpus of the trust created hereunder consisting of (i) the Mortgage Loans
and all interest and principal with respect thereto received on or after the
related Cut-off Date, other than such amounts which were due on the Mortgage
Loans on or prior to the related Cut-off Date; (ii) the Collection Account,
[Excess Reserve Fund Account], the Distribution Account, the Termination
Receipts Amount and the Replacement Receipts Amount and all amounts deposited
therein pursuant to the applicable provisions of this Agreement;
(iii) property that secured a Mortgage Loan and has been acquired by
foreclosure, deed-in-lieu of foreclosure or otherwise; (iv) the Depositor’s
rights under the Purchase Agreement; (v) the Insurance Policies; and
(vi) all proceeds of the conversion, voluntary or involuntary, of any of
the foregoing.
-40-
Trustee:
[ ],
a
[ ],
and its successors in interest and, if a successor trustee is appointed
hereunder, such successor.
Underwriters’
Exemption:
Any
exemption listed under footnote 1 of, and amended by, Prohibited Transaction
Exemption [ ], as amended by [ ], PTE
[ ] and PTE [ ], or any successor
exemption.
Unpaid
Realized Loss Amount:
With
respect to any Class of Class [M] Certificates and as to any
Distribution Date, is the excess of (i) Applied Realized Loss Amounts with
respect to such Class over (ii) the sum of (a) all distributions
in reduction of such Applied Realized Loss Amounts on all previous Distribution
Dates, and (b) the amount by which the Class Certificate Balance of
such Class has been increased due to the distribution of any Subsequent
Recoveries on all previous Distribution Dates. Any amounts distributed to a
Class of Class M Certificates in respect of any Unpaid Realized Loss
Amount will not be applied to reduce the Class Certificate Balance of such
Class.
[Upper
Tier REMIC:
As
described in the Preliminary Statement.]
[Upper
Tier REMIC Regular Interest:
As
described in the Preliminary Statement.]
U.S.
Person:
(i) A citizen or resident of the United States; (ii) a corporation (or
entity treated as a corporation for tax purposes) created or organized in the
United States or under the laws of the United States or of any State thereof,
including, for this purpose, the District of Columbia; (iii) a partnership
(or entity treated as a partnership for tax purposes) organized in the United
States or under the laws of the United States or of any State thereof,
including, for this purpose, the District of Columbia (unless provided otherwise
by future Treasury regulations); (iv) an estate whose income is includible
in gross income for United States income tax purposes regardless of its source;
or (v) a trust, if a court within the United States is able to exercise
primary supervision over the administration of the trust and one or more U.S.
Persons have authority to control substantial decisions of the trust.
Notwithstanding the last clause of the preceding sentence, to the extent
provided in Treasury regulations, certain trusts in existence on August 20,
1996, and treated as U.S. Persons prior to such date, may elect to continue
to
be U.S. Persons.
Voting
Rights:
The
portion of the voting rights of all of the Certificates which is allocated
to
any Certificate. As of any date of determination, [ ]% of all
Voting Rights shall be allocated to each of the Class [X], Class [P] and
Class [R] Certificates, if any (such Voting Rights to be allocated among the
holders of Certificates of each such Class in accordance with their
respective Percentage Interests) and the remaining Voting Rights shall be
allocated among Holders of the remaining Classes of Certificates in proportion
to the Certificate Balances of their respective Certificates on such
date.
-41-
ARTICLE
II
CONVEYANCE
OF MORTGAGE LOANS;
REPRESENTATIONS
AND WARRANTIES
Section
2.01 Conveyance
of Mortgage Loans.
(a) The Depositor, concurrently with the execution and delivery hereof,
hereby sells, transfers, assigns, sets over and otherwise conveys to the Trustee
for the benefit of the Certificateholders, without recourse, all the right,
title and interest of the Depositor in and to the Trust Fund.
Concurrently
with the execution of this Agreement, the Swap Agreement shall be delivered
to
the Securities Administrator. In connection therewith, the Depositor hereby
directs the Securities Administrator (solely in its capacity as Securities
Administrator of the Supplemental Interest Trust) and the Securities
Administrator is hereby authorized to execute and deliver the Swap Agreement
(on
behalf of the Supplemental Interest Trust), for the benefit of
Certificateholders. The Depositor, the Sponsor, the Master Servicer, the
Servicer, the Mortgage Loan Seller and the Certificateholders (by their
acceptance of such Certificates) acknowledge and agree that the Securities
Administrator is executing and delivering the Swap Agreement solely in its
capacity as Securities Administrator of the Supplemental Interest Trust and
not
in its individual capacity. The Securities Administrator shall have no duty
or
responsibility to enter into any other swap agreement upon the expiration or
termination of the Swap Agreement unless so directed by the
Depositor.
Concurrently
with the execution and delivery of this Agreement, the Depositor does hereby
assign to the Trustee all of its rights and interest under the Purchase
Agreement, including the right to enforce the Sponsor’s obligation to repurchase
or substitute defective Mortgage Loans under Section 5 of the Purchase
Agreement. The Trustee hereby accepts such assignment, and as set forth herein
in Section 2.03(k), shall be entitled to exercise all the rights of the
Depositor under the Purchase Agreement as if, for such purpose, it were the
Depositor.
(b) In
connection with the transfer and assignment of each Mortgage Loan, the Depositor
has delivered or caused to be delivered to the Custodian for the benefit of
the
Certificateholders the following documents or instruments with respect to each
Mortgage Loan so assigned:
(i) the
original Credit Line Agreement bearing all intervening endorsements necessary
to
show a complete chain of endorsements from the original payee, endorsed in
blank, “Pay to the order of _____________, without recourse”, and, if previously
endorsed, signed in the name of the last endorsee by a duly qualified officer
of
the last endorsee;
(ii) the
original Assignment of Mortgage for each Mortgage Loan, in form and substance
acceptable for recording. The Mortgage shall be assigned, with assignee’s name
left blank;
-42-
(iii) the
original of each guarantee executed in connection with the Credit Line
Agreement, if any;
(iv) the
original recorded Mortgage, with evidence of recording thereon. If in connection
with any Mortgage Loan, the original Mortgage cannot be delivered 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 Mortgage Loan
Seller shall deliver or cause to be delivered to the Custodian, (A) in the
case of a delay caused by the public recording office, a copy of such Mortgage
certified by the Mortgage Loan Seller, escrow agent, title insurer or closing
attorney to be a true and complete copy of the original recorded Mortgage and
(B) in the case 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 to be a true and complete copy of the original recorded
Mortgage;
(v) originals
or a certified copy of each modification agreement, if any;
(vi) the
originals of all intervening assignments of Mortgage with evidence of recording
thereon evidencing a complete chain of ownership from the originator of the
Mortgage Loan to the last assignee, or if any such intervening assignment of
Mortgage has not been returned from the applicable public recording office
or
has been lost or if such public recording office retains the original recorded
intervening assignments of Mortgage, a photocopy of such intervening assignment
of Mortgage, together with (A) in the case of a delay caused by the public
recording office, an officer’s certificate of the Mortgage Loan Seller, escrow
agent, closing attorney or the title insurer insuring the Mortgage stating
that
such intervening assignment of Mortgage has been delivered 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 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 party
delivering the officer’s certificate or by the Mortgage Loan Seller; or
(B) in the case of an intervening assignment of mortgage where a public
recording office retains the original recorded intervening assignment of
Mortgage or in the case where an intervening assignment of Mortgage is lost
after recordation in a public recording office, a copy of such intervening
assignment of Mortgage with recording information thereon certified by such
public recording office to be a true and complete copy of the original recorded
intervening assignment of Mortgage;
(vii) if
the
Credit Line Agreement, the Mortgage, any Assignment of Mortgage or any other
related document has been signed by a Person on behalf of the Mortgagor, the
copy of the power of attorney or other instrument that authorized and empowered
such Person to sign;
-43-
(viii) the
original lender’s title insurance policy (or a marked title insurance
commitment, in the event that an original lender’s title insurance policy has
not yet been issued) in the form of an ALTA mortgage title insurance policy,
containing all required endorsements and insuring the Trustee and its successors
and assigns as to the first priority lien of the Mortgage in the original
principal amount of the Mortgage Loan;
(ix) the
original of any Primary Mortgage Insurance Policy or certificate or, an
electronic certification, evidencing the existence of the Primary Mortgage
Insurance Policy or certificate, if private mortgage guaranty insurance is
required; and
(x) original
of any security agreement, chattel mortgage or equivalent document executed
in
connection with the Mortgage, if any.
To
the
extent not previously delivered to the Sponsor pursuant to the Master MLPSA,
the
Mortgage Loan Seller shall promptly upon receipt from the respective recording
office cause to be delivered to the Custodian the original recorded document
described in clauses (iv) and (vi) above.
From
time
to time, the Mortgage Loan Seller, the Depositor or the Servicer, as applicable,
shall forward to the Custodian additional original documents, additional
documents evidencing an assumption, modification, consolidation or extension
of
a Mortgage Loan, in accordance with the terms of this Agreement upon receipt
of
such documents. All such mortgage documents held by the Custodian as to each
Mortgage Loan shall constitute the “Custodial
File”.
To
the
extent not previously delivered to the Sponsor pursuant to the Master MLPSA,
on
or prior to the Closing Date, the Mortgage Loan Seller shall deliver to the
Custodian Assignments of Mortgages, in blank, for each Mortgage Loan. No later
than thirty (30) Business Days following the later of the Closing Date and
the
date of receipt by the Servicer of the complete recording information for a
Mortgage, the Servicer shall promptly submit or cause to be submitted for
recording, at the expense of the Mortgage Loan Seller and at no expense to
the
Trust Fund, the Trustee, the Servicer or the Depositor, in the appropriate
public office for real property records, each Assignment of Mortgage referred
to
in Section 2.01(b)(ii). Notwithstanding the foregoing, however, for
administrative convenience and facilitation of servicing and to reduce closing
costs, the Assignments of Mortgage shall not be required to be completed and
submitted for recording with respect to any Mortgage Loan if the Trustee
and each Rating Agency have received an Opinion of Counsel, satisfactory in
form
and substance to the Trustee and each Rating Agency to the effect that the
recordation of such Assignments of Mortgage in any specific jurisdiction is
not
necessary to protect the Trust Fund’s interest in the related Credit Line
Agreement. If the Assignment of Mortgage is to be recorded, the Mortgage shall
be assigned by the Mortgage Loan Seller, at the expense of the Mortgage Loan
Seller, to
“[ ],
as trustee under the Pooling and Servicing Agreement dated as of
[ ], for Structured Asset Securities Corporation Trust
[ ]”. In the event that any such Assignment of Mortgage is lost
or returned unrecorded because of a defect therein, the Mortgage Loan Seller
shall promptly cause to be delivered a substitute Assignment of Mortgage to
cure
such defect and thereafter cause each such assignment to be duly recorded at
no
expense to the Trust Fund.
-44-
In
the
event that such original or copy of any document submitted for recordation
to
the appropriate public recording office is not so delivered to the Trustee
within 180 days (or such other time period as may be required by any Rating
Agency) following the Closing Date, and in the event that the Mortgage Loan
Seller does not cure such failure within 30 days of discovery or receipt of
written notification of such failure from the Depositor, the related Mortgage
Loan shall, upon the request of the Depositor, be repurchased by the Mortgage
Loan Seller at the price and in the manner specified in Section 2.03. The
foregoing repurchase obligation shall not apply in the event that the Mortgage
Loan Seller cannot deliver such original or copy of any document submitted
for
recordation to the appropriate public recording office within the specified
period due to a delay caused by the recording office in the applicable
jurisdiction; provided,
that
the Mortgage Loan Seller shall instead deliver a recording receipt of such
recording office or, if such recording receipt is not available, an officer’s
certificate of an officer of the Mortgage Loan Seller, confirming that such
document has been accepted for recording.
Notwithstanding
anything to the contrary contained in this Section 2.01, in those instances
where the public recording office retains or loses the original Mortgage or
assignment after it has been recorded, the obligations of the Mortgage Loan
Seller shall be deemed to have been satisfied upon delivery by the Mortgage
Loan
Seller to the Trustee, prior to the Closing Date of a copy of such Mortgage
or
assignment, as the case may be, certified (such certification to be an original
thereof) by the public recording office to be a true and complete copy of the
recorded original thereof.
(c) The
Depositor does hereby establish, pursuant to the further provisions of this
Agreement and the laws of the State of New York, an express trust (the
“Trust”)
to be
known, for convenience, as “Structured Asset Securities Corporation Trust
[ ]” and [ ] is hereby appointed as Trustee
and [ ] is appointed as Securities Administrator in accordance
with the provisions of this Agreement. The parties hereto acknowledge and agree
that it is the policy and intention of the Trust to acquire only Mortgage Loans
meeting the requirements set forth in this Agreement, including without
limitation, the representations and warranties set forth in the Schedules
hereto.
(d) The
Trust
shall have the capacity, power and authority, and the Trustee on behalf of
the
Trust is hereby authorized, to accept the sale, transfer, assignment, set over
and conveyance by the Depositor to the Trust of all the right, title and
interest of the Depositor in and to the Trust Fund (including, without
limitation, the Mortgage Loans) pursuant to Section 2.01(a).
Section
2.02 Acceptance
by the Trustee of the Mortgage Loans.
The Custodian shall acknowledge, on the Closing Date, receipt by the Custodian
of the documents identified in the Initial Certification in the form annexed
hereto as Exhibit E (“Initial
Certification”),
and
declares that it holds and will hold such documents and the other documents
delivered to it pursuant to Section 2.01, and that it holds or will hold
such other assets as are included in the Trust Fund, in trust for the exclusive
use and benefit of all present and future Certificateholders. The Custodian
shall maintain possession of the related Credit Line Agreements in the State
of
[ ], unless otherwise permitted by the Rating
Agencies.
-45-
In
connection with the Closing Date, the Custodian shall be required to deliver
via
facsimile (with original to follow the next Business Day) to the Depositor
an
Initial Certification prior to the Closing Date, or, as the Depositor agrees
on
the Closing Date, certifying receipt of a Credit Line Agreement and Assignment
of Mortgage for each Mortgage Loan. The Custodian shall not be responsible
to
verify the validity, sufficiency or genuineness of any document in any Custodian
File.
Within
90 days after the Closing Date, the Custodian shall ascertain that all
documents identified in the Document Certification and Exception Report in
the
form attached hereto as Exhibit F are in its possession, and shall deliver
to the Depositor, the Mortgage Loan Seller and the Servicer a Document
Certification and Exception Report, in the form annexed hereto as
Exhibit F, to the effect that, as to each Mortgage Loan listed in the
Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any
Mortgage Loan specifically identified in such certification as an exception
and
not covered by such certification): (i) all documents identified in the
Document Certification and Exception Report and required to be reviewed by
it
are in its possession; (ii) such documents have been reviewed by it and
appear regular on their face and relate to such Mortgage Loan; (iii) based
on its examination and only as to the foregoing documents, the information
set
forth in items (1), (2), (3), (15), (18) and (22) of the Data Tape
Information respecting such Mortgage Loan is correct; and (iv) each Credit
Line Agreement has been endorsed as provided in Section 2.01 of this
Agreement. Neither the Trustee nor the Custodian shall be responsible to verify
the validity, sufficiency or genuineness of any document in any Custodial
File.
The
Custodian shall retain possession and custody of each Custodial File in
accordance with and subject to the terms and conditions set forth herein. The
Servicer shall promptly deliver to the Custodian, upon the execution or receipt
thereof, the originals of such other documents or instruments constituting
the
Custodial File as come into the possession of the Servicer from time to
time.
The
Mortgage Loan Seller shall deliver to the Servicer copies of all trailing
documents required to be included in the Custodial File at the same time the
original or certified copies thereof are delivered to the Custodian, including
but not limited to such documents as the title insurance policy and any other
Mortgage Loan documents upon return from the public recording office. The
documents shall be delivered by the Mortgage Loan Seller at such Mortgage Loan
Seller’s expense to the Servicer.
Section
2.03 Representations,
Warranties and Covenants of the Mortgage Loan Seller and the Servicer; Remedies
for Breaches of Representations and Warranties with Respect to the Mortgage
Loans.
(a) [ ], in its capacity as Servicer makes the
representations and warranties set forth in Schedule II
hereto,
to the Depositor, the Master Servicer, the Securities Administrator and the
Trustee as of the Closing Date.
(b) [
], in its capacity as Mortgage Loan Seller, makes the representations and
warranties set forth in Schedule III and Schedule IV hereto, to the
Depositor, the Master Servicer, the Securities Administrator and the Trustee
as
of the date specified therein.
-46-
(c) It
is
understood and agreed by the Servicer and the Mortgage Loan Seller that the
representations and warranties set forth in this Section 2.03 shall survive
the transfer of the Mortgage Loans by the Depositor to the Trustee on the
Closing Date, and shall inure to the benefit of the Depositor, the Trustee
and
the Trust Fund notwithstanding any restrictive or qualified endorsement on
any
Credit Line Agreement or Assignment of Mortgage or the examination or failure
to
examine any Mortgage File. Upon discovery by the Mortgage Loan Seller, the
Depositor, the Securities Administrator, the Trustee, the Master Servicer or
the
Servicer of a breach of any of the foregoing representations and warranties,
the
party discovering such breach shall give prompt written notice to the
others.
(d) Within
30 days of the earlier of either discovery by or notice to the Mortgage
Loan Seller that any Mortgage Loan does not conform to the requirements as
determined in the Custodian’s review of the related Custodial File or within
60 days of the earlier of either discovery by or notice to the Mortgage
Loan Seller of any breach of a representation or warranty referred to in
Section 2.03(b) that materially and adversely affects the value of any
Mortgage Loan or the interest of the Trustee or the Certificateholders therein,
the Mortgage Loan Seller shall use its best efforts to cause to be remedied
a
material defect in a document constituting part of a Mortgage File or promptly
to cure such breach in all material respects and, if such defect or breach
cannot be remedied, the Mortgage Loan Seller shall, at the Depositor’s option as
specified in writing and provided to the Mortgage Loan Seller and the Trustee,
(i) if such 30- or 60-day period, as applicable, expires prior to the
second anniversary of the Closing Date, remove such Mortgage Loan (a
“Deleted
Mortgage Loan”)
from
the Trust Fund and substitute in its place a Substitute Mortgage Loan, in the
manner and subject to the conditions set forth in this Section 2.03; or
(ii) repurchase such Mortgage Loan at the Repurchase Price; provided,
however,
that
any such substitution pursuant to clause (i) above shall not be
effected prior to the delivery to the Custodian of a Request for Release
substantially in the form of Exhibit J, and the delivery of the Mortgage
File to the Custodian for any such Substitute Mortgage Loan. Notwithstanding
the
foregoing, a breach (i) which causes a Mortgage Loan not to constitute a
“qualified mortgage” within the meaning of Section 860G(a)(3) of the Code
or (ii) of any of the representations and warranties set forth in clauses
[ ] of Schedule III with respect to a Group I Mortgage
Loan, will be deemed automatically to materially and adversely affect the value
of such Mortgage Loan and the interests of the Trustee and Certificateholders
in
such Mortgage Loan, requiring the repurchase or substitution of such Mortgage
Loan by the Mortgage Loan Seller. In the event that the Trustee receives notice
of a breach by the Mortgage Loan Seller of any of the representations and
warranties described in the immediately preceding sentence, the Trustee shall
give notice of such breach to the Mortgage Loan Seller and request the Mortgage
Loan Seller to substitute such Mortgage Loan or to repurchase such Mortgage
Loan
at the Repurchase Price within sixty (60) days of the receipt of such
notice. The Mortgage Loan Seller shall repurchase each such Mortgage Loan within
60 days of the earlier of discovery or receipt of notice with respect to
each such Mortgage Loan.
(e) With
respect to any Substitute Mortgage Loan or Loans, the Mortgage Loan Seller
shall
deliver to the Custodian for the benefit of the Certificateholders the Credit
Line Agreement, the Mortgage, the related assignment of the Mortgage, and such
other documents and agreements as are required by Section 2.01, with the
Credit Line Agreement endorsed and the Mortgage assigned as required by
Section 2.01. No substitution is permitted to be made with respect to any
Distribution Date after the end of the related Prepayment Period. Scheduled
Payments due with respect to Substitute Mortgage Loans in the Due Period of
substitution shall not be part of the Trust Fund and will be retained by the
Mortgage Loan Seller on the next succeeding Distribution Date. For the Due
Period of substitution, distributions to Certificateholders will include the
Scheduled Payment due on any Deleted Mortgage Loan for such Due Period and
thereafter the Mortgage Loan Seller shall be entitled to retain all amounts
received in respect of such Deleted Mortgage Loan.
-47-
(f) The
Servicer shall amend the Mortgage Loan Schedule for the benefit of the
Certificateholders to reflect the removal of such Deleted Mortgage Loan and
the
substitution of the Substitute Mortgage Loan or Loans and the Servicer shall
deliver the amended Mortgage Loan Schedule to the Trustee and the Custodian.
Upon such substitution, the Substitute Mortgage Loan or Loans shall be subject
to the terms of this Agreement in all respects, and the Mortgage Loan Seller
shall be deemed to have made with respect to such Substitute Mortgage Loan
or
Loans, as of the date of substitution, the representations and warranties made
pursuant to Section 2.03(b) with respect to such Mortgage Loan. Upon any
such substitution and the deposit to the Collection Account of the amount
required to be deposited therein in connection with such substitution as
described in the following paragraph, the Custodian shall release the Mortgage
File held for the benefit of the Certificateholders relating to such Deleted
Mortgage Loan to the Mortgage Loan Seller and the Trustee, upon receipt of
a
Request for Release certifying that all amounts required to be deposited in
accordance with this Section 2.03(f) have been deposited in the Collection
Account, shall execute and deliver at the Mortgage Loan Seller’s direction such
instruments of transfer or assignment prepared by the Mortgage Loan Seller
in
each case without recourse, as shall be necessary to vest title in the Mortgage
Loan Seller of the Trustee’s interest in any Deleted Mortgage Loan substituted
for pursuant to this Section 2.03.
(g) For
any
month in which the Mortgage Loan Seller substitutes one or more Substitute
Mortgage Loans for one or more Deleted Mortgage Loans, the Servicer will
determine the amount (if any) by which the aggregate unpaid principal balance
of
all such Substitute Mortgage Loans as of the date of substitution is less than
the aggregate unpaid principal balance of all such Deleted Mortgage Loans.
The
amount of such shortage plus an amount equal to the aggregate of any
unreimbursed Advances with respect to such Deleted Mortgage Loans (collectively,
the “Substitution
Adjustment Amount”)
shall
be remitted by the Mortgage Loan Seller to the Servicer for deposit into the
Collection Account on or before the Distribution Account Deposit Date for the
Distribution Date in the month succeeding the calendar month during which the
related Mortgage Loan became required to be purchased or replaced
hereunder.
(h) In
addition to the repurchase or substitution obligations referred to in
Section 2.03(d) above and Section 2.03 (k) below, the Mortgage Loan
Seller or the Sponsor, as applicable, shall indemnify the Depositor, any of
its
Affiliates, the Master Servicer, the Servicer, the Securities Administrator,
the
Trustee and the Trust and hold such parties harmless against any losses,
damages, penalties, fines, forfeitures, reasonable and necessary legal fees
and
related costs, judgments and other costs and expenses (including, without
limitation, any taxes payable by the Trust) resulting from any third party
claim, demand, defense or assertion based on or grounded upon, or resulting
from, a breach by the Mortgage Loan Seller or the Sponsor, as applicable, of
any
of its representations and warranties or obligations contained in this
Agreement.
-48-
(i) The
Servicer shall amend the Mortgage Loan Schedule for the benefit of the
Certificateholders to reflect the removal of such Deleted Mortgage Loan and
the
Servicer shall deliver the amended Mortgage Loan Schedule to the Trustee, the
Custodian, the Master Servicer and the Securities Administrator.
(j) In
the
event that a Mortgage Loan shall have been repurchased pursuant to this
Agreement or the Purchase Agreement, the proceeds from such repurchase shall
be
deposited by the Servicer in the Collection Account pursuant to
Section 3.10 on or before the Remittance Date for the Distribution Date in
the month following the month during which the Mortgage Loan Seller or Sponsor
became obligated to repurchase or replace such Mortgage Loan and upon such
deposit of the Repurchase Price, and receipt of a Request for Release in the
form of Exhibit J hereto, the Custodian shall release the related Custodial
File held for the benefit of the Certificateholders to the Mortgage Loan Seller
or the Sponsor, as applicable, as directed by the Servicer, and the Trustee
shall execute and deliver at such Person’s direction such instruments of
transfer or assignment prepared by such Person, in each case without recourse,
as shall be necessary to transfer title from the Trustee. In accordance with
Section 12.05(a), the Securities Administrator shall promptly notify each
Rating Agency of a purchase of a Mortgage Loan pursuant to this
Section 2.03.
It
is
understood and agreed that the obligation of the Mortgage Loan Seller under
this
Agreement to cure, repurchase or substitute any Mortgage Loan as to which a
breach of a representation and warranty has occurred and is continuing, together
with any related indemnification obligations of the Mortgage Loan Seller set
forth in Section 2.03(h), shall constitute the sole remedies against such
Person respecting such breach available to Certificateholders, the Depositor
and
any of its Affiliates, or the Trustee on their behalf.
(k) The
Trustee acknowledges that, except as provided in Section 5 of the Purchase
Agreement, the Sponsor shall not have any obligation or liability with respect
to any breach of a representation or warranty made by it with respect to a
Mortgage Loan sold by it, provided
that
such representation or warranty was also made by the Mortgage Loan Seller with
respect to the related Mortgage Loan. It is understood and agreed that the
representations and warranties of the Sponsor set forth in Section 4 of the
Purchase Agreement and assigned to the Trustee by the Depositor hereunder shall
survive the transfer of the Mortgage Loans by the Depositor to the Trustee
on
the Closing Date, and shall inure to the benefit of the Trustee and the
Certificateholders notwithstanding any restrictive or qualified endorsement
on
any Credit Line Agreement or Assignment of Mortgage and shall continue
throughout the term of this Agreement. Upon the discovery by any of the Sponsor,
the Depositor, the Securities Administrator, the Trustee, the Master Servicer
or
the Servicer of a breach of any of the Sponsor’s representations and warranties
set forth in Section 4 of the Purchase Agreement, the party discovering the
breach shall give prompt written notice to the others. Within
[ ] days of the earlier of either discovery by or notice
to the Sponsor of any breach of any of the foregoing representations or
warranties that materially and adversely affects the value of any Mortgage
Loan
or the interest of the Trustee or the Certificateholders therein, the Sponsor
shall use its best efforts to cure such breach in all material respects and,
if
such defect or breach cannot be remedied, the Sponsor shall, at the Depositor’s
instructions as specified in writing and provided to the Sponsor and the
Trustee, (i) if such [ ]-day period expires prior to the
second anniversary of the Closing Date, remove such Mortgage Loan from the
Trust
Fund and substitute in its place
-49-
a
Substitute Mortgage Loan, in the same manner and subject to the same conditions
set forth in this Section 2.03 that apply to repurchases or substitutions
of Mortgage Loans by the Mortgage Loan Seller or (ii) repurchase such
Mortgage Loan at the Repurchase Price; provided,
however,
that
any such substitution pursuant to clause (i) above shall not be
effected prior to the delivery to the Custodian of a Request for Release
substantially in the form of Exhibit J, and the delivery of the Mortgage
File to the Custodian for any such Substitute Mortgage Loan. In the event of
any
such repurchase or substitution of a Mortgage Loan by the Sponsor, the
procedures set forth in Sections 2.03(e), (f), (g), (h), (i) and (j) shall
apply
to the Sponsor in the same manner and to the same extent that they are
applicable to the Mortgage Loan Seller. It is understood and agreed that the
obligations of the Sponsor under this Agreement to cure, repurchase or
substitute any Mortgage Loan as to which a breach of a representation and
warranty has occurred and is continuing, together with any related
indemnification obligations of the Sponsor set forth in Section 2.03(h), shall
constitute the sole remedies against the Sponsor available to the
Certificateholders, the Depositor and any of its affiliates, or the Trustee
on
their behalf.
The
provisions of this Section 2.03 shall survive delivery of the respective
Custodial Files to the Custodian for the benefit of the
Certificateholders.
Section
2.04 Execution
and Delivery of Certificates.
The
Trustee acknowledges the transfer and assignment to it of the Trust Fund and,
concurrently with such transfer and assignment, the Securities Administrator
has
executed and delivered to, or upon the order of the Depositor, the Certificates
in authorized denominations evidencing directly or indirectly the entire
ownership of the Trust Fund. The Trustee agrees to hold the Trust Fund and
exercise the rights referred to above for the benefit of all present and future
Holders of the Certificates.
Section
2.05 REMIC
Matters.
The
Preliminary Statement sets forth the designations for federal income tax
purposes of all interests created hereby. The “Startup
Day”
for
purposes of the REMIC Provisions shall be the Closing Date. The “latest
possible maturity date”
is
the
Distribution Date occurring in [ ], which is the Distribution
Date in the month following the month in which the latest Mortgage Loan maturity
date occurs.
Section
2.06 Representations
and Warranties of the Depositor.
The
Depositor hereby represents, warrants and covenants to the other parties to
this
agreement that as of the date of this Agreement or as of such date specifically
provided herein:
(a) The
Depositor is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware;
(b) The
Depositor has the power and authority to convey the Mortgage Loans and to
execute, deliver and perform, and to enter into and consummate transactions
contemplated by, this Agreement;
(c) This
Agreement has been duly and validly authorized, executed and delivered by the
Depositor, all requisite company action having been taken, and, assuming the
due
authorization, execution and delivery hereof by the other parties hereto,
constitutes or will constitute the legal, valid and binding agreement of the
Depositor, enforceable against the Depositor in accordance with its terms,
except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the
rights of creditors generally, and by general equity principles (regardless
of
whether such enforcement is considered in a proceeding in equity or at
law);
-50-
(d) No
consent, approval, authorization or order of, or registration or filing with,
or
notice to, any governmental authority or court is required for the execution,
delivery and performance of or compliance by the Depositor with this Agreement
or the consummation by the Depositor of any of the transactions contemplated
hereby, except as have been received or obtained on or prior to the Closing
Date;
(e) None
of
the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby or thereby, or the fulfillment of or compliance
with the terms and conditions of this Agreement, (i) conflicts or will
conflict with or results or will result in a breach of, or constitutes or will
constitute a default or results or will result in an acceleration under
(A) the charter or bylaws of the Depositor, or (B) of any term,
condition or provision of any material indenture, deed of trust, contract or
other agreement or instrument to which the Depositor or any of its subsidiaries
is a party or by which it or any of its subsidiaries is bound; (ii) results
or will result in a violation of any law, rule, regulation, order, judgment
or
decree applicable to the Depositor of any court or governmental authority having
jurisdiction over the Depositor or its subsidiaries; or (iii) results in
the creation or imposition of any lien, charge or encumbrance which would have
a
material adverse effect upon the Mortgage Loans or any documents or instruments
evidencing or securing the Mortgage Loans;
(f) There
are
no actions, suits or proceedings before or against or investigations of, the
Depositor pending, or to the knowledge of the Depositor, threatened, before
any
court, administrative agency or other tribunal, and no notice of any such
action, which, in the Depositor’s reasonable judgment, might materially and
adversely affect the performance by the Depositor of its obligations under
this
Agreement, or the validity or enforceability of this Agreement;
(g) The
Depositor is not in default with respect to any order or decree of any court
or
any order, regulation or demand of any federal, state, municipal or governmental
agency that would materially and adversely affect its performance hereunder;
and
(h) Immediately
prior to the transfer and assignment by the Depositor to the Trustee on the
Closing Date, the Depositor had good title to, and was the sole owner of each
Mortgage Loan, free of any interest of any other Person, and the Depositor
has
transferred all right, title and interest in each Mortgage Loan to the Trustee.
The transfer of the Credit Line Agreement and the Mortgage as and in the manner
contemplated by this Agreement is sufficient either (i) fully to transfer
to the Trustee, for the benefit of the Certificateholders, all right, title,
and
interest of the Depositor thereto as note holder and mortgagee or (ii) to
grant to the Trustee, for the benefit of the Certificateholders, the security
interest referred to in Section 12.04.
It
is
understood and agreed that the representations, warranties and covenants set
forth in this Section 2.06 shall survive delivery of the respective
Mortgage Files to the Custodian and shall inure to the benefit of the
Trustee.
-51-
ARTICLE
III
ADMINISTRATION
AND SERVICING
OF
MORTGAGE LOANS
Section
3.01 Servicer
to Service Mortgage Loans.
(a) For and on behalf of the Certificateholders, the Servicer shall
service and administer the Mortgage Loans in accordance with the terms of this
Agreement and the respective Mortgage Loans and, to the extent consistent with
such terms, in accordance with Accepted Servicing Practices, but without regard
to:
(i) any
relationship that the Servicer, any Subservicer or any Affiliate of the Servicer
or any Subservicer may have with the related Mortgagor;
(ii) the
ownership or non-ownership of any Certificate by the Servicer or any Affiliate
of the Servicer;
(iii) the
Servicer’s obligation to make P&I Advances or Servicing Advances;
or
(iv) the
Servicer’s or any Subservicer’s right to receive compensation for its services
hereunder or with respect to any particular transaction.
To
the
extent consistent with the foregoing, the Servicer shall seek to maximize the
timely and complete recovery of principal and interest on the Credit Line
Agreements. Subject only to the above-described servicing standards and the
terms of this Agreement and of the respective Mortgage Loans, the Servicer
shall
have full power and authority, acting alone or through Subservicers as provided
in Section 3.02, to do or cause to be done any and all things in connection
with such servicing and administration which it may deem necessary or desirable.
Without limiting the generality of the foregoing, the Servicer in its own name
or in the name of a Subservicer is hereby authorized and empowered by the
Trustee when the Servicer believes it appropriate in its best judgment in
accordance with Accepted Servicing Practices to execute and deliver any and
all
instruments of satisfaction or cancellation, or of partial or full release
or
discharge, and all other comparable instruments, with respect to the Mortgage
Loans and the Mortgaged Properties and to institute foreclosure proceedings
or
obtain a deed-in-lieu of foreclosure so as to convert the ownership of such
properties, and to hold or cause to be held title to such properties, on behalf
of the Trustee; provided,
further,
that
upon the full release or discharge, the Servicer shall notify the Custodian
of
the Mortgage Loan of such full release or discharge. The Servicer shall at
its
own expense be responsible for preparing and recording all lien releases and
mortgage satisfactions in accordance with state and local regulations. The
Servicer shall service and administer the Mortgage Loans in accordance with
applicable state and federal law and shall provide to the Mortgagors any reports
required to be provided to them thereby. The Servicer shall also comply in
the
performance of this Agreement with all reasonable rules and requirements of
each
insurer under any standard hazard insurance policy or any Primary Mortgage
Insurance Policy. Subject to Section 3.16, the Trustee shall execute, at
the written request of the Servicer, and furnish to the Servicer and any
Subservicer such documents provided to the Trustee as are necessary or
appropriate to enable the Servicer or any Subservicer to carry out their
servicing and administrative duties hereunder, and the Trustee hereby grants
to
the Servicer, and this Agreement shall constitute, a power of attorney to carry
out such duties including a power of attorney to take title to Mortgaged
Properties after foreclosure on behalf of the Trustee. The Trustee shall execute
a separate power of attorney, furnished to it by the Servicer, in favor of
the
Servicer for the purposes described herein to the extent necessary or desirable
to enable the Servicer to perform its duties hereunder. The Trustee shall not
be
liable for the actions of the Servicer or any Subservicers under such powers
of
attorney. Notwithstanding anything contained herein to the contrary, no Servicer
or Subservicer shall without the Trustee’s consent: (i) initiate any action,
suit or proceeding solely under the Trustee’s name without indicating the
Servicer’s or Subservicer’s, as applicable, representative capacity, or (ii)
knowingly take any action with the intent to, or which actually does cause,
the
Trustee to be registered to do business in any state.
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(b) Subject
to Section 3.09(b), in accordance with the standards of the preceding
paragraph, the Servicer shall advance or cause to be advanced funds as necessary
for the purpose of effecting the timely payment of taxes and assessments on
the
Mortgaged Properties, which advances shall be Servicing Advances reimbursable
in
the first instance from the collection from the Mortgagors pursuant to
Section 3.09(b), and further as provided in Section 3.11. Any cost
incurred by the Servicer or by Subservicers in effecting the timely payment
of
taxes and assessments on a Mortgaged Property shall not be added to the unpaid
principal balance of the related Mortgage Loan, notwithstanding that the terms
of such Mortgage Loan so permit.
(c) Notwithstanding
anything in this Agreement to the contrary, the Servicer may not make any future
advances with respect to a Mortgage Loan (except as provided in
Section 4.01) and the Servicer shall not (i) permit any modification
with respect to any Mortgage Loan that would change the Mortgage Rate, reduce
or
increase the principal balance (except for reductions resulting from actual
payments of principal) or change the final maturity date on such Mortgage Loan
(except for a reduction of interest payments resulting from the application
of
the Servicemembers Civil Relief Act or any similar state statutes) or
(ii) permit any modification, waiver or amendment of any term of any
Mortgage Loan that would both (A) effect an exchange or reissuance of such
Mortgage Loan under Section 1001 of the Code (or final, temporary or
proposed Treasury regulations promulgated thereunder) and (B) cause either
the [Upper Tier] REMIC or a [Lower Tier] REMIC to fail to qualify as a REMIC
under the Code or the imposition of any tax on “prohibited transactions” or
“contributions after the startup day” under the REMIC Provisions, or
(iii) except as provided in Section 3.07(a), waive any Prepayment
Charges.
(d) The
Servicer may delegate its responsibilities under this Agreement; provided,
however,
that no
such delegation shall release the Servicer from the responsibilities or
liabilities arising under this Agreement.
Section
3.02 Subservicing
Agreements between Servicer and Subservicers; Use of Subcontractors.
(a) The
Servicer may enter into a subservicing agreement with a Subservicer, for the
servicing and administration of the Mortgage Loans (“Subservicing
Agreement”)
without obtaining the prior consent of the Trustee, the Depositor, the Master
Servicer, Securities Administrator or other parties hereto to the utilization
of
any such Subservicer, provided the provisions of such Subservicing Agreement
comply with the requirements set forth of this Section 3.02. None of the
Trustee, the Master Servicer or the Depositor shall be required to review or
consent to such Subservicing Agreement and shall have no liability in connection
therewith.
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(b) Each
Subservicer shall be (i) authorized to transact business in the state or
states in which the related Mortgaged Properties it is to service are situated,
if and to the extent required by applicable law to enable the Subservicer to
perform its obligations hereunder and under the Subservicing Agreement and
(ii)
a Xxxxxxx Mac or Xxxxxx Mae approved mortgage servicer. Each Subservicing
Agreement must impose on the Subservicer requirements conforming to the
provisions set forth in Sections 3.08, 3.22, 3.23, 3.24, 3.29, 6.05, 6.06,
7.01(i) and Exhibit S of this Agreement to the same extent as if such
Subservicer were the Servicer and otherwise provide for servicing of the
Mortgage Loans consistent with the terms of this Agreement. The Servicer shall
examine each Subservicing Agreement and will be familiar with the terms thereof
in order to determine that the foregoing requirements have been incorporated
into the Subservicing Agreement and that the terms thereof are not otherwise
inconsistent with any of the provisions of this Agreement. The Servicer and
the
Subservicers may enter into and make amendments to the Subservicing Agreements
or enter into different forms of Subservicing Agreements; provided,
however,
that
any such amendments or different forms shall be consistent with and not violate
the provisions of this Agreement, and that no such amendment or different form
shall be made or entered into which could be reasonably expected to be
materially adverse to the interests of the Trustee, the Master Servicer or
the
Securities Administrator without their prior written consent. Any variation
without the consent of the Trustee, Depositor and Master Servicer from the
requirements set forth in Sections 3.08, 3.22, 3.23, 3.24, 6.05, 6.06,
7.01(i) and Exhibit S, are conclusively deemed to be inconsistent with this
Agreement and therefore prohibited. The Servicer shall deliver to the Master
Servicer, the Securities Administrator, the Trustee and the Depositor copies
of
all Subservicing Agreements, and any amendments or modifications thereof,
promptly upon the Servicer’s execution and delivery of such
instruments.
(c) As
part
of its servicing activities hereunder, the Servicer (except as otherwise
provided in the last sentence of this paragraph) shall enforce the obligations
of each Subservicer under the related Subservicing Agreement, including, without
limitation, (i) any obligation to make advances in respect of delinquent
payments as required by a Subservicing Agreement and (ii) the reporting
obligations set forth under Section 3.22, 3.23, 3.24 and 3.29 hereof to the
same
extent as if such Subservicer were the Servicer. The Servicer shall be
responsible for obtaining from each Subservicer and delivering to the Master
Servicer, the Securities Administrator and the Depositor (i) any servicer annual
compliance statement required to be delivered by such Subservicer under Section
3.24(b); (ii) assessments and attestations of compliance with Relevant Servicing
Criteria required to be delivered by the Subservicer pursuant to Sections 3.22
and 3.23; and (iii) any certifications required to be delivered under Section
3.24(a) to the Master Servicer or such other Person that will be responsible
for
signing the Xxxxxxxx-Xxxxx Certification as and where required to be delivered
hereunder. Such enforcement, including, without limitation, the legal
prosecution of claims, termination of Subservicing Agreements, and the pursuit
of other appropriate remedies, shall be in such form and carried out to such
an
extent and at such time as the Servicer, in its good faith business judgment,
would require were it the owner of the related Mortgage Loans. The Servicer
shall pay the costs of such enforcement at its own expense, and shall be
reimbursed therefor only (i) from a general recovery resulting from such
enforcement, to the extent, if any, that such recovery exceeds all amounts
due
in respect of the related Mortgage Loans or (ii) from a specific recovery
of costs, expenses or attorneys’ fees against the party against whom such
enforcement is directed.
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(d) It
shall
not be necessary for the Servicer to seek the consent of the Depositor, the
Trustee, the Master Servicer, the Securities Administrator or other parties
hereto to the utilization of a Subcontractor. The Servicer shall give prior
written notice to the Master Servicer and the Depositor of the appointment
of
any Subcontractor and provide a written description (in form and substance
satisfactory to the Depositor) of the role and function of each Subcontractor
specifying (i) the eligibility of each such Subcontractor, (ii) which, if any,
of such Subcontractors are Servicing Function Participants, (iii) which elements
of the Servicing Criteria set forth under Item 1122(d) of Regulation AB will
be
addressed in assessments and attestations of compliance with Relevant Servicing
Criteria provided by such Subcontractor identified pursuant to clause (ii)
of
this paragraph.
(e) As
a
condition to the utilization of any Subcontractor determined to be a Servicing
Function Participant, the Servicer shall cause any such Subcontractor used
by
the Servicer (or by any Subservicer) to comply with the provisions of Sections
3.22, 3.23, 3.24, 3.29, 6.05, 6.06, 7.01(i) and Exhibit S of this Agreement
to
the same extent as if such Subcontractor were the Servicer. The Servicer shall
be responsible for obtaining from each Subcontractor and delivering the
Securities Administrator, the Master Servicer and the Depositor any assessments
and attestations of compliance required to be delivered by such Subcontractor
pursuant to Sections 3.22 and 3.23, in each case as and when required to be
delivered.
Section
3.03 Successor
Subservicers.
The
Servicer shall be entitled to terminate any Subservicing Agreement and the
rights and obligations of any Subservicer pursuant to any Subservicing Agreement
in accordance with the terms and conditions of such Subservicing Agreement.
In
the event of termination of any Subservicer, all servicing obligations of such
Subservicer shall be assumed simultaneously by the Servicer without any act
or
deed on the part of such Subservicer or Servicer, and the Servicer either shall
service directly the related Mortgage Loans or shall enter into a Subservicing
Agreement with a successor subservicer which qualifies under
Section 3.02.
Any
Subservicing Agreement shall include the provision that such agreement may
be
immediately terminated by the Master Servicer without fee, in accordance with
the terms of this Agreement, in the event that the Servicer shall, for any
reason, no longer be the Servicer (including termination due to an Event of
Default).
Section
3.04 Liability
of the Servicer.
Notwithstanding any subservicing agreement or the provisions of this Agreement
relating to agreements or arrangements between the Servicer and a Subservicer,
Subcontractor or other third party or reference to actions taken through a
Subservicer, a Subcontractor, another third party or otherwise, the Servicer
shall remain obligated and primarily liable to the Trustee and the Trust Fund
for the servicing and administering of the Mortgage Loans in accordance with
the
provisions hereof without diminution of such obligation or liability by virtue
of any subservicing, subcontracting or other agreements or arrangements or
by
virtue of indemnification from a Subservicer, Subcontractor or a third party
and
to the same extent and under the same terms and conditions as if the Servicer
alone were servicing the Mortgage Loans, including with respect to compliance
with Item 1122 of Regulation AB. The Servicer shall be entitled to enter into
any agreement with a Subservicer, Subcontractor or other third party for
indemnification of the Servicer by such Subservicer, Subcontractor or third
party and nothing contained in the Agreement shall be deemed to limit or modify
such indemnification.
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Section
3.05 No
Contractual Relationship between Subservicers and the Master
Servicer.
Any
Subservicing Agreement that may be entered into and any transactions or services
relating to the Mortgage Loans involving a Subservicer in its capacity as such
shall be deemed to be between the Subservicer and the Servicer alone, and none
of the Trustee, the Depositor, the Securities Administrator, or the Master
Servicer (nor any successor master servicer) shall be deemed a party thereto
and
shall have no claims, rights, obligations, duties or liabilities with respect
to
the Subservicer except as set forth in Section 3.06. The Servicer shall be
solely liable for all fees owed by it to any Subservicer, irrespective of
whether the Servicer’s compensation pursuant to this Agreement is sufficient to
pay such fees.
Section
3.06 Assumption
or Termination of Subservicing Agreements by Master Servicer.
In the
event the Servicer at any time shall for any reason no longer be the Servicer
(including by reason of the occurrence of an Event of Default), the Master
Servicer, or its designee or the successor servicer if the successor is not
the
Master Servicer, shall thereupon assume all of the rights and obligations of
the
Servicer under each Subservicing Agreement that the Servicer may have entered
into, with copies thereof provided to the Master Servicer or the successor
servicer if the successor is not the Master Servicer, prior to the Master
Servicer or the successor servicer if the successor is not the Master Servicer,
assuming such rights and obligations, unless the Master Servicer elects to
terminate any Subservicing Agreement in accordance with its terms as provided
in
Section 3.03.
Upon
such
assumption, the Master Servicer, its designee or the successor servicer shall
be
deemed, subject to Section 3.03, to have assumed all of the Servicer’s
interest therein and to have replaced the Servicer as a party to each
Subservicing Agreement to the same extent as if each Subservicing Agreement
had
been assigned to the assuming party, except that (i) the Servicer shall not
thereby be relieved of any liability or obligations under any Subservicing
Agreement that arose before it ceased to be the Servicer and (ii) none of
the Trustee, the Depositor, the Master Servicer, the Securities Administrator,
their designees or any successor servicer shall be deemed to have assumed any
liability or obligation of the Servicer that arose before it ceased to be the
Servicer.
The
Servicer at its expense shall, upon request of the Master Servicer, its designee
or the successor servicer deliver to the assuming party all documents and
records relating to the Subservicing Agreement and the Mortgage Loans then
being
serviced and an accounting of amounts collected and held by or on behalf of
it,
and otherwise use its best efforts to effect the orderly and efficient transfer
of the Subservicing Agreements to the assuming party.
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Section
3.07 Collection
of Certain Mortgage Loan Payments.
(a) The Servicer shall make reasonable efforts to collect all
payments called for under the terms and provisions of the Mortgage Loans, and
shall, to the extent such procedures shall be consistent with this Agreement
and
the terms and provisions of any applicable Insurance Policies, follow such
collection procedures as it would follow with respect to mortgage loans
comparable to the Mortgage Loans and held for its own account. Consistent with
the foregoing and Accepted Servicing Practices, the Servicer may (i) waive
any late payment charge or, if applicable, any penalty interest, or
(ii) extend the due dates for the Scheduled Payments due on a Credit Line
Agreement for a period of not greater than 180 days; provided,
that
any extension pursuant to clause (ii) above shall not affect the
amortization schedule of any Mortgage Loan for purposes of any computation
hereunder, except as provided below. In the event of any such arrangement
pursuant to clause (ii) above, the Servicer shall make timely advances
on such Mortgage Loan during such extension pursuant to Section 4.01 and in
accordance with the amortization schedule of such Mortgage Loan without
modification thereof by reason of such arrangements, subject to
Section 4.01(d) pursuant to which the Servicer shall not be required to
make any such advances that are Nonrecoverable P&I Advances. Notwithstanding
the foregoing, in the event that any Mortgage Loan is in default or in the
judgment of the Servicer, such default is reasonably foreseeable, the Servicer,
consistent with the standards set forth in Section 3.01, may also waive,
modify or vary any term of such Mortgage Loan (including modifications that
would change the Mortgage Rate, forgive the payment of principal or interest,
extend the final maturity date of such Mortgage Loan or waive, in whole or
in
part, a Prepayment Charge), accept payment from the related Mortgagor of an
amount less than the Stated Principal Balance in final satisfaction of such
Mortgage Loan, or consent to the postponement of strict compliance with any
such
term or otherwise grant indulgence to any Mortgagor (any and all such waivers,
modifications, variances, forgiveness of principal or interest, postponements,
or indulgences collectively referred to herein as “Forbearance”);
provided,
however,
that
the Servicer’s approval of a modification of a Due Date shall not be considered
a modification for purposes of this sentence; provided,
further,
that
the final maturity date of any Mortgage Loan may not be extended beyond the
Final Scheduled Distribution Date for the LIBOR Certificates. The Servicer’s
analysis supporting any Forbearance and the conclusion that any Forbearance
meets the standards of Section 3.01 shall be reflected in writing in the
Servicing File or on the Servicer’s servicing records. In addition,
notwithstanding the foregoing, the Servicer may also waive (or permit a
Subservicer to waive), in whole or in part, a Prepayment Charge if such waiver
would, in the Servicer’s judgment, maximize recoveries on the related Mortgage
Loan or if such Prepayment Charge is (i) not permitted to be collected by
applicable law, or the collection of the Prepayment Charge would be considered
“predatory” pursuant to written guidance published by any applicable federal,
state or local regulatory authority having jurisdiction over such matters,
or
(ii) the enforceability of such Prepayment Charge is limited (1) by
bankruptcy, insolvency, moratorium, receivership or other similar laws relating
to creditors’ rights or (2) due to acceleration in connection with a
foreclosure or other involuntary payment. If a Prepayment Charge is waived
other
than as permitted in this Section 3.07(a), then the Servicer is required to
pay the amount of such waived Prepayment Charge, for the benefit of the Holders
of the Class [P] Certificates, by depositing such amount into the
Collection Account together with and at the time that the amount prepaid on
the
related Mortgage Loan is required to be deposited into the Collection Account;
provided,
however,
that
the Servicer shall not have an obligation to pay the amount of any uncollected
Prepayment Charge if the failure to collect such amount is the direct result
of
inaccurate or incomplete information on the Mortgage Loan Schedule in effect
at
such time. The Master Servicer shall have no responsibility for verifying the
accuracy of the amount of Prepayment Charges waived or remitted by the
Servicer.
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(b) (i) The
Securities Administrator shall establish and maintain the Excess Reserve Fund
Account, on behalf of the Class [X] Certificateholders, to receive any
Basis Risk Payment and to secure their limited recourse obligation to pay to
the
LIBOR Certificateholders Basis Risk Carryover Amounts.
(ii) On
each
Distribution Date, the Securities Administrator shall deposit the amount of
any
Basis Risk Payment for such date into the [Excess Reserve Fund
Account].
(c) (i) On
each
Distribution Date on which there exists a Basis Risk Carryover Amount on any
Class of Certificates, the Securities Administrator shall (1) withdraw
from the Distribution Account and deposit in the Excess Reserve Fund Account,
as
set forth in Section 4.02[ ], the lesser of (x) the
Class [X] Distributable Amount (without regard to the reduction in the
definition thereof with respect to the Basis Risk Payment (to the extent
remaining after the distributions specified in Sections 4.02[ ])
and (y) the aggregate Basis Risk Carryover Amounts for such Distribution
Date and (2) withdraw from the [Excess Reserve Fund Account] amounts
necessary to pay to such Class or Classes of LIBOR Certificates the Basis
Risk Carryover Amount. Such payments shall be allocated to those Classes on
a
pro rata
basis
based upon the amount of Basis Risk Carryover Amount owed to each such
Class and shall be paid in the priority set forth in
Sections 4.02[ ].
(ii) [The
Securities Administrator shall account for the [Excess Reserve Fund Account]
as
an asset of a grantor trust under subpart E, Part I of
subchapter J of the Code and not as an asset of any REMIC created pursuant
to this Agreement. The beneficial owners of the Excess Reserve Fund Account
are
the Class [X] Certificateholders. For all federal tax purposes, amounts
transferred by the [Upper Tier] REMIC to the Excess Reserve Fund Account shall
be treated as distributions by the Securities Administrator to the
Class [X] Certificateholders.]
(iii) Any
Basis
Risk Carryover Amounts paid by the Securities Administrator to the LIBOR
Certificateholders shall be accounted for by the Securities Administrator as
amounts paid first to the Holders of the Class [X] Certificates and then to
the respective Class or Classes of LIBOR Certificates. In addition, the
Securities Administrator shall account for such Certificateholders’ rights to
receive payments of Basis Risk Carryover Amounts as rights in a limited recourse
notional principal contract written by the Class [X] Certificateholders in
favor of such Certificateholders.
(iv) [Notwithstanding
any provision contained in this Agreement, the Securities Administrator shall
not be required to make any payments to and from the Excess Reserve Fund Account
except as expressly set forth in this Section 3.07(c) and
Sections 4.02[ ].]
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(d) The
Securities Administrator shall establish and maintain the Distribution Account
on behalf of the Certificateholders. The Master Servicer shall, promptly
upon
receipt, deposit in the Distribution Account and retain therein the
following:
(i) the
aggregate amount remitted by the Servicer to the Master Servicer pursuant to
Section 3.11;
(ii) any
amount deposited by the Servicer pursuant to Section 3.12(b) in connection
with any losses on Permitted Investments; and
(iii) any
other
amounts deposited hereunder which are required to be deposited in the
Distribution Account.
In
the
event that the Servicer shall remit any amount not required to be remitted,
it
may at any time direct the Securities Administrator in writing to withdraw
such
amount from the Distribution Account, any provision herein to the contrary
notwithstanding. Such direction may be accomplished by delivering notice to
the
Securities Administrator which describes the amounts deposited in error in
the
Distribution Account. All funds deposited in the Distribution Account shall
be
held by the Securities Administrator in trust for the Certificateholders until
disbursed in accordance with this Agreement or withdrawn in accordance with
Section 4.02.
(e) The
Securities Administrator may invest the funds in the Distribution Account during
the Securities Administrator Float Period in one or more Permitted Investments
in accordance with Section 3.12. The Securities Administrator may withdraw
from the Distribution Account any income or gain earned from the investment
of
funds deposited therein for its own benefit.
(f) The
Servicer shall give notice to the Securities Administrator of any proposed
change of the location of the Collection Account not later than 30 days and
not more than 45 days prior to any change thereof and the Securities
Administrator shall forward such notice to each Rating Agency and the
Depositor.
(g) In
order
to comply with its duties under the USA Patriot Act of 2001, the Trustee shall
obtain and verify certain information and documentation from the other parties
to this Agreement, including, but not limited to, each such party’s name,
address and other identifying information.
Section
3.08 Subservicing
Accounts.
In
those cases where a Subservicer is servicing a Mortgage Loan pursuant to a
Subservicing Agreement, the Subservicer will be required to establish and
maintain one or more segregated accounts (collectively, the “Subservicing
Account”).
The
Subservicing Account shall be an Eligible Account and shall otherwise be
acceptable to the Servicer. The Subservicer shall deposit in the clearing
account (which account must be an Eligible Account) in which it customarily
deposits payments and collections on mortgage loans in connection with its
mortgage loan servicing activities on a daily basis, and in no event more than
one Business Day after the Subservicer’s receipt thereof, all proceeds of
Mortgage Loans received by the Subservicer less its servicing compensation
to
the extent permitted by the Subservicing Agreement, and shall thereafter deposit
such amounts in the Subservicing Account, in no event more than two Business
Days after the deposit of such funds into the clearing account. The Subservicer
shall thereafter deposit such proceeds in the Collection Account or remit such
proceeds to the Servicer for deposit in the Collection Account not later than
two Business Days after the deposit of such amounts in the Subservicing Account.
For purposes of this Agreement, the Servicer shall be deemed to have received
payments on the Mortgage Loans when the Subservicer receives such
payments.
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Section
3.09 Collection
of Taxes, Assessments and Similar Items; Escrow Accounts.
(a) The Servicer shall enforce the obligations under each
paid-in-full, life-of-the-loan tax service contract in effect with respect
to
each Mortgage Loan (each, a “Tax
Service Contract”).
Each
Tax Service Contract shall be assigned to a successor servicer, at the
Servicer’s expense in the event that the Servicer is terminated as the Servicer
of the related Mortgage Loan.
(b) To
the
extent that the services described in this paragraph (b) are not
otherwise provided pursuant to the Tax Service Contracts described in
paragraph (a) hereof, the Servicer undertakes to perform such
functions. To the extent the related Mortgage provides for Escrow Payments,
the
Servicer shall establish and maintain, or cause to be established and
maintained, one or more segregated accounts (the “Escrow
Accounts”),
which
shall be Eligible Accounts. The Servicer shall deposit in the clearing account
(which account must be an Eligible Account) in which it customarily deposits
payments and collections on mortgage loans in connection with its mortgage
loan
servicing activities on a daily basis, and in no event more than one Business
Day after the Servicer’s receipt thereof, all collections from the Mortgagors
(or related advances from Subservicers) for the payment of taxes, assessments,
hazard insurance premiums and comparable items for the account of the Mortgagors
(“Escrow
Payments”)
collected on account of the Mortgage Loans and shall thereafter deposit such
Escrow Payments in the Escrow Accounts, in no event more than two Business
Days
after the deposit of such funds in the clearing account, for the purpose of
effecting the payment of any such items as required under the terms of this
Agreement. Withdrawals of amounts from an Escrow Account may be made only to
(i) effect payment of taxes, assessments, hazard insurance premiums, and
comparable items; (ii) reimburse the Servicer (or a Subservicer to the
extent provided in the related Subservicing Agreement) out of the collection
for
any advances made pursuant to Section 3.01 (with respect to taxes and
assessments) and Section 3.13 (with respect to hazard insurance);
(iii) refund to Mortgagors any sums as may be determined to be overages;
(iv) pay interest, if required and as described below, to Mortgagors on
balances in the Escrow Account; (v) clear and terminate the Escrow Account
at the termination of the Servicer’s obligations and responsibilities in respect
of the Mortgage Loans under this Agreement; or (vi) recover amounts
deposited in error. As part of its servicing duties, the Servicer or
Subservicers shall pay to the Mortgagors interest on funds in Escrow Accounts,
to the extent required by law and, to the extent that interest earned on funds
in the Escrow Accounts is insufficient, to pay such interest from its or their
own funds, without any reimbursement therefor. To the extent that a Mortgage
does not provide for Escrow Payments, the Servicer shall determine whether
any
such payments are made by the Mortgagor in a manner and at a time that avoids
the loss of the Mortgaged Property due to a tax sale or the foreclosure of
a tax
lien. The Servicer assumes full responsibility for the payment of all such
bills
within such time and shall effect payments of all such bills irrespective of
the
Mortgagor’s faithful performance in the payment of same or the making of the
Escrow Payments and shall make advances from its own funds to effect such
payments; provided,
however,
that
such advances are deemed to be Servicing Advances.
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Section
3.10 Collection
Account.
(a) On behalf of the Trustee, the Servicer shall establish and
maintain, or cause to be established and maintained, one or more segregated
Eligible Accounts (such account or accounts, the “Collection
Account”),
held
in trust for the benefit of the Trustee. On behalf of the Trustee, the Servicer
shall deposit or cause to be deposited in the clearing account (which account
must be an Eligible Account) in which it customarily deposits payments and
collections on mortgage loans in connection with its mortgage loan servicing
activities on a daily basis, and in no event more than one Business Day after
the Servicer’s receipt thereof, and shall thereafter deposit into the Collection
Account, in no event more than two Business Days after the deposit of such
funds
into the clearing account, as and when received or as otherwise required
hereunder, the following payments and collections received or made by it
subsequent to the Cut-off Date (other than in respect of principal or interest
on the related Mortgage Loans due on or before the Cut-off Date), or payments
(other than Principal Prepayments) received by it on or prior to the Cut-off
Date but allocable to a Due Period subsequent thereto:
(i) all
payments on account of principal, including Principal Prepayments, on the
Mortgage Loans;
(ii) all
payments on account of interest (net of the related Servicing Fee) on each
Mortgage Loan;
(iii) all
Insurance Proceeds and Condemnation Proceeds to the extent such Insurance
Proceeds and Condemnation Proceeds are not to be applied to the restoration
of
the related Mortgaged Property or released to the related Mortgagor in
accordance with the express requirements of law or in accordance with Accepted
Servicing Practices, Liquidation Proceeds and Subsequent
Recoveries;
(iv) any
amounts required to be deposited pursuant to Section 3.12 in connection
with any losses realized on Permitted Investments with respect to funds held
in
the Collection Account;
(v) any
amounts required to be deposited by the Servicer pursuant to the second
paragraph of Section 3.13(a) in respect of any blanket policy
deductibles;
(vi) all
proceeds of any Mortgage Loan repurchased or purchased in accordance with this
Agreement; and
(vii) all
Prepayment Charges collected by the Servicer.
The
foregoing requirements for deposit in the Collection 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, NSF fees,
reconveyance fees, assumption fees and other similar fees and charges need
not
be deposited by the Servicer in the Collection Account and shall, upon
collection, belong to the Servicer as additional compensation for its servicing
activities. In the event the Servicer shall deposit in the Collection Account
any amount not required to be deposited therein, it may at any time withdraw
such amount from the Collection Account, any provision herein to the contrary
notwithstanding.
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(b) Funds
in
the Collection Account may be invested in Permitted Investments in accordance
with the provisions set forth in Section 3.12. The Servicer shall give
notice to the Securities Administrator, the Master Servicer, the Trustee
and the
Depositor of the location of the Collection Account maintained by it when
established and prior to any change thereof.
Section
3.11 Withdrawals
from the Collection Account.
(a) The Servicer shall, from time to time, make withdrawals from the
Collection Account maintained by it for any of the following purposes or as
described in Section 4.01:
(i) on
or
prior to each Remittance Date, to remit to the Master Servicer (A) the
Master Servicing Fee with respect to such Distribution Date and (B) all
Available Funds in respect of the related Distribution Date together with all
amounts representing Prepayment Charges (payable to the Class P
Certificateholders) from the Mortgage Loans received during the related
Prepayment Period;
(ii) to
reimburse the Servicer for P&I Advances, but only to the extent of amounts
received which represent Late Collections (net of the related Servicing Fees)
of
Scheduled Payments on Mortgage Loans with respect to which such P&I Advances
were made by the Servicer in accordance with the provisions of Section 4.01
and (B) any xxxxxxxxxxxx X&X Advances to the extent of funds held in the
Collection Account for a future Distribution Date that were not included in
Available Funds for the preceding Distribution Date;
(iii) to
pay
the Servicer or any Subservicer (A) any unpaid Servicing Fees or
(B) any unreimbursed Servicing Advances with respect to each Mortgage Loan,
but only to the extent of any Late Collections or other amounts as may be
collected by the Servicer from a Mortgagor, or otherwise received with respect
to such Mortgage Loan (or the related REO Property);
(iv) to
pay to
the Servicer as servicing compensation (in addition to the Servicing Fee) on
each Remittance Date any interest or investment income earned on funds deposited
in the Collection Account;
(v) to
pay to
the Mortgage Loan Seller, with respect to each Mortgage Loan that has previously
been repurchased or replaced pursuant to this Agreement, all amounts received
thereon subsequent to the date of purchase or substitution, as the case may
be;
(vi) to
reimburse the Servicer for (A) any P&I Advance or Servicing Advance
previously made which the Servicer has determined to be a Nonrecoverable P&I
Advance or Nonrecoverable Servicing Advance in accordance with the provisions
of
Section 4.01 and (B) any unpaid Servicing Fees to the extent not
recoverable from Late Collections or other amounts received with respect to
the
related Mortgage Loan under Section 3.11(a)(iii);
(vii) to
pay,
or to reimburse the Servicer for Servicing Advances in respect of, expenses
incurred in connection with any Mortgage Loan pursuant to
Section 3.15;
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(viii) to
reimburse the Master Servicer, the Servicer, the Depositor, the Securities
Administrator or the Trustee for expenses incurred by or reimbursable to
the
Master Servicer, the Servicer, the Depositor, the Securities Administrator
or
the Trustee, as the case may be, pursuant to Section 6.03,
Section 7.02, Section 8.05, Section 9.13 or
Section 10.02;
(ix) to
reimburse the Master Servicer, the Servicer or the Trustee, as the case may
be,
for expenses reasonably incurred in respect of the breach or defect giving
rise
to the repurchase obligation of the Mortgage Loan Seller or the Sponsor under
this Agreement that were included in the Repurchase Price of the Mortgage Loan,
including any expenses arising out of the enforcement of the repurchase
obligation, to the extent not otherwise paid pursuant to the terms
hereof;
(x) to
withdraw any amounts deposited in the Collection Account in error;
and
(xi) to
clear
and terminate the Collection Account upon termination of this
Agreement.
(b) The
Servicer shall keep and maintain separate accounting, on a Mortgage Loan by
Mortgage Loan basis, for the purpose of justifying any withdrawal from the
Collection Account, to the extent held by or on behalf of it, pursuant to
subclauses (a)(ii), (iii), (v), (vi), (vii), (viii) and (ix) above.
The Servicer shall provide written notification (as set forth in
Section 4.01(d)) to the Master Servicer, on or prior to the next succeeding
Remittance Date, upon making any withdrawals from the Collection Account
pursuant to subclause (a)(vi) above.
Section
3.12 Investment
of Funds in the Collection Account, Escrow Accounts and the Distribution
Account.
(a) The Servicer may invest the funds in the Collection Account
maintained by it and the Escrow Accounts (to the extent permitted by law and
the
related Mortgage Loan documents) and the Securities Administrator may invest
funds in the Distribution Account during the Securities Administrator’s Float
Period and shall invest such funds in the Distribution Account (for purposes
of
this Section 3.12, each such Account is referred to as an “Investment
Account”),
in
one or more Permitted Investments bearing interest or sold at a discount, and
maturing, unless payable on demand, no later than the Business Day immediately
preceding the date on which such funds are required to be withdrawn from such
account pursuant to this Agreement; provided,
however,
that
any such Permitted Investment managed by or advised by the Securities
Administrator or any of its Affiliates may mature, unless payable on demand,
no
later than the date on which such funds are required to be withdrawn from such
account pursuant to this Agreement. All such Permitted Investments shall be
held
to maturity, unless payable on demand. Any investment of funds in an Investment
Account shall be made in the name of the Servicer or the Securities
Administrator, as applicable. The Servicer or the Securities Administrator,
as
applicable, shall be entitled to sole possession over each such investment,
and
any certificate or other instrument evidencing any such investment shall be
delivered directly to the Servicer or the Securities Administrator or its agent,
as applicable, together with any document of transfer necessary to transfer
title to such investment to the Servicer or the Securities Administrator or
its
agent, as applicable. In the event amounts on deposit in an Investment Account
are at any time invested in a Permitted Investment payable on demand, the
Servicer or the Securities Administrator, as applicable, may:
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|
(x)
|
consistent
with any notice required to be given thereunder, demand that payment
thereon be made on the last day such Permitted Investment may otherwise
mature hereunder in an amount equal to the lesser of (1) all amounts
then payable thereunder and (2) the amount required to be withdrawn
on such date; and
|
|
(y)
|
demand
payment of all amounts due thereunder that such Permitted Investment
would
not constitute a Permitted Investment in respect of funds thereafter
on
deposit in an Investment Account.
|
(b) All
income and gain realized from the investment of funds deposited in the
Collection Account or Escrow Account, as applicable, held by or on behalf of
the
Servicer, shall be for the benefit of the Servicer and shall be subject to
its
withdrawal in the manner set forth in Section 3.11. The Servicer shall
deposit in the Collection Account or Escrow Account, as applicable, the amount
of any loss of principal incurred in respect of any such Permitted Investment
made with funds in such accounts immediately upon realization of such
loss.
(c) All
income and gain realized from the investment of funds deposited in the
Distribution Account held by the Securities Administrator during the Securities
Administrator’s Float Period, shall be for the benefit of the Securities
Administrator, and shall be subject to the Securities Administrator’s withdrawal
in the manner set forth in Section 3.07(d). Notwithstanding anything in
this Section 3.12(c), the Securities Administrator shall be liable to the Trust
for any such loss on any funds it has invested under this Section 3.12(c) only
during the Securities Administrator Float Period, and the Securities
Administrator shall deposit in the Distribution Account the amount of any loss
of principal incurred in respect of any such Permitted Investment made with
funds in such account immediately upon realization of such loss.
(d) Except
as
otherwise expressly provided in this Agreement, if any default occurs in the
making of a payment due under any Permitted Investment of funds held in the
Escrow Account or any Collection Account, or if a default occurs in any other
performance required under any Permitted Investment of funds held in the Escrow
Account or any Collection Account, the Servicer or the Securities Administrator,
as applicable, shall take such action as may be appropriate to enforce such
payment or performance, including the institution and prosecution of appropriate
proceedings.
(e) The
Securities Administrator or its Affiliates are permitted to receive additional
compensation that could be deemed to be in the Securities Administrator’s
economic self-interest for (i) serving as investment adviser,
administrator, shareholder, servicing agent, custodian or sub-custodian with
respect to certain of the Permitted Investments, (ii) using Affiliates to
effect transactions in certain Permitted Investments and (iii) effecting
transactions in certain Permitted Investments. Such compensation shall not
be
considered an amount that is reimbursable for payable pursuant to this
Agreement.
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Section
3.13 Maintenance
of Hazard Insurance and Errors and Omissions and Fidelity
Coverage.
(a) The Servicer shall cause to be maintained for each Mortgage Loan
fire insurance with extended coverage on the related Mortgaged Property in
an
amount which is at least equal to the least of (i) the outstanding
principal balance of such Mortgage Loan, (ii) the amount necessary to fully
compensate for any damage or loss to the improvements that are a part of such
property on a replacement cost basis and (iii) the maximum insurable value
of the improvements which are a part of such Mortgaged Property, in each case
in
an amount not less than such amount as is necessary to avoid the application
of
any coinsurance clause contained in the related hazard insurance policy.
The Servicer shall also cause to be maintained fire insurance with extended
coverage on each REO Property in an amount which is at least equal to the lesser
of (i) the maximum insurable value of the improvements which are a part of
such property and (ii) the outstanding principal balance of the related
Mortgage Loan at the time it became an REO Property, plus accrued interest
at the Mortgage Rate and related Servicing Advances. The Servicer will comply
in
the performance of this Agreement with all reasonable rules and requirements
of
each insurer under any such hazard policies. Any amounts to be collected by
the
Servicer under any such policies (other than amounts required to be deposited
in
the Escrow Account and applied to the restoration or repair of the property
subject to the related Mortgage or amounts to be released to the Mortgagor
in
accordance with the procedures that the Servicer would follow in servicing
loans
held for its own account, subject to the terms and conditions of the related
Mortgage and Credit Line Agreement) shall be deposited in the Collection
Account, subject to withdrawal pursuant to Section 3.11. Any cost incurred
by the Servicer in maintaining any such insurance shall not, for the purpose
of
calculating distributions to the Master Servicer, be added to the unpaid
principal balance of the related Mortgage Loan, notwithstanding that the terms
of such Mortgage Loan so permit. It is understood and agreed that no earthquake
or other additional insurance is to be required of any Mortgagor other than
pursuant to such applicable laws and regulations as shall at any time be in
force and as shall require such additional insurance. If the Mortgaged Property
or REO Property is at any time in an area identified in the Federal Register
by
the Federal Emergency Management Agency as having special flood hazards and
flood insurance has been made available, the Servicer will cause to be
maintained a flood insurance policy in respect thereof. Such flood insurance
shall be in an amount equal to the lesser of (i) the unpaid principal
balance of the related Mortgage Loan and (ii) the maximum amount of such
insurance available for the related Mortgaged Property under the national flood
insurance program (assuming that the area in which such Mortgaged Property
is
located is participating in such program).
In
the
event that the Servicer shall obtain and maintain a blanket policy with an
insurer having a general policy rating of A:VI or better in Best’s (or such
other rating that is comparable to such rating) insuring against hazard losses
on all of the Mortgage Loans, it shall conclusively be deemed to have satisfied
its obligations as set forth in the first two sentences of this
Section 3.13, it being understood and agreed that such policy may contain a
deductible clause, in which case the Servicer shall, in the event that there
shall not have been maintained on the related Mortgaged Property or REO Property
a policy complying with the first two sentences of this Section 3.13, and
there shall have been one or more losses which would have been covered by such
policy, deposit to the Collection Account from its own funds the amount not
otherwise payable under the blanket policy because of such deductible clause.
In
connection with its activities as administrator and servicer of the Mortgage
Loans, the Servicer agrees to prepare and present, on behalf of itself and
the
Trustee, claims under any such blanket policy in a timely fashion in accordance
with the terms of such policy.
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(b) The
Servicer shall keep in force during the term of this Agreement a policy or
policies of insurance covering errors and omissions for failure in the
performance of the Servicer’s obligations under this Agreement, which, policy or
policies shall be in such form and amount consistent with Accepted Servicing
Practices. The Servicer shall also maintain a fidelity bond in the form and
amount that would be consistent with Accepted Servicing Practice. The Servicer
shall provide the Master Servicer with copies of any such insurance policies
and
fidelity bond. The Servicer shall be deemed to have complied with this provision
if an Affiliate of the Servicer has such errors and omissions and fidelity
bond
coverage and, by the terms of such insurance policy or fidelity bond, the
coverage afforded thereunder extends to the Servicer. Any such errors and
omissions policy and fidelity bond shall by its terms not be cancelable without
thirty days’ prior written notice to the Master Servicer. The Servicer
shall also cause each Subservicer to maintain a policy of insurance covering
errors and omissions and a fidelity bond which would meet such
requirements.
Section
3.14 Enforcement
of Due-On-Sale Clauses; Assumption Agreements.
The
Servicer will, to the extent it has knowledge of any conveyance or prospective
conveyance of any Mortgaged Property by any Mortgagor (whether by absolute
conveyance or by contract of sale, and whether or not the Mortgagor remains
or
is to remain liable under the Credit Line Agreement and/or the Mortgage),
exercise its rights to accelerate the maturity of such Mortgage Loan under
the
“due-on-sale” clause, if any, applicable thereto; provided,
however,
that
the Servicer shall not exercise any such rights if prohibited by law from doing
so or if the exercise of such rights would impair or threaten to impair recovery
under the related Primary Mortgage Insurance Policy, if any. If the Servicer
believes it is unable under applicable law to enforce such “due-on-sale”
clause or if any of the other conditions set forth in the proviso to the
preceding sentence apply, the Servicer will enter into either (i) an
assumption and modification agreement from or with the person to whom such
property has been conveyed or is proposed to be conveyed, pursuant to which
such
person becomes liable under the Credit Line Agreement and, to the extent
permitted by applicable state law, the Mortgagor remains liable thereon or
(ii) a substitution agreement as provided in the succeeding sentence. The
Servicer is also authorized to enter into a substitution of liability agreement
with such person, pursuant to which the original Mortgagor is released from
liability and such person is substituted as the Mortgagor and becomes liable
under the Credit Line Agreement, provided,
that no
such substitution shall be effective unless such person satisfies the
underwriting criteria of the Mortgage Loan Seller and has a credit risk rating
at least equal to that of the original Mortgagor. The Mortgage Loan, as assumed,
shall conform in all respects to the requirements, representations and
warranties of this Agreement. The Servicer shall not take or enter into any
assumption and modification agreement, however, unless (to the extent
practicable in the circumstances) it shall have received confirmation, in
writing, of the continued effectiveness of any applicable hazard insurance
policy, or a new policy meeting the requirements of this Section is
obtained. Any fee collected by the Servicer in respect of an assumption or
substitution of liability agreement will be retained by the Servicer as
additional servicing compensation. In connection with any such assumption,
no
material term of the Credit Line Agreement (including but not limited to the
related Mortgage Rate and the amount of the Scheduled Payment) may be amended
or
modified, except as otherwise required pursuant to the terms thereof. The
Servicer shall notify the Master Servicer that any such substitution,
modification or assumption agreement has been completed and shall forward to
the
Custodian the executed original of such substitution 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.
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Notwithstanding
the foregoing paragraph or any other provision of this Agreement, the
Servicer shall not be deemed to be in default, breach or any other violation
of
its obligations hereunder by reason of any assumption of a Mortgage Loan by
operation of law or by the terms of the Credit Line Agreement or any assumption
which the Servicer may be restricted by law from preventing, for any reason
whatsoever. For purposes of this Section 3.14, the term “assumption” is
deemed to also include a sale (of the Mortgaged Property) subject to the
Mortgage that is not accompanied by an assumption or substitution of liability
agreement.
Section
3.15 Realization
upon Defaulted Mortgage Loans.
The
Servicer shall use its best efforts, consistent with Accepted Servicing
Practices, to foreclose upon or otherwise comparably convert (which may include
an acquisition of REO Property) the ownership of properties securing such
of the Mortgage Loans as come into and continue in default and as to which
no
satisfactory arrangements can be made for collection of delinquent payments
pursuant to Section 3.07, and which are not released from this Agreement
pursuant to any other provision hereof. The Servicer shall use reasonable
efforts to realize upon such defaulted Mortgage Loans in such manner as will
maximize the receipt of principal and interest by the Securities Administrator,
taking into account, among other things, the timing of foreclosure proceedings.
The foregoing is subject to the provisions that the Servicer shall not be
required to expend its own funds in connection with foreclosure or other
conversion, correction of a default on a senior mortgage or restoration of
any
property unless it shall determine in its sole discretion (i) that such
foreclosure, correction or restoration will increase the net Liquidation
Proceeds of the related Mortgage Loan to the Securities Administrator, after
reimbursement to itself for such expenses and (ii) that such expenses will
be recoverable by the Servicer through Insurance Proceeds, Condemnation
Proceeds, Liquidation Proceeds or Subsequent Recoveries from the related
Mortgaged Property, as contemplated in Section 3.11. The Servicer shall be
responsible for all other costs and expenses incurred by it in any such
proceedings; provided,
however,
that it
shall be entitled to reimbursement thereof from the related property, as
contemplated in Section 3.11.
The
proceeds of any liquidation or REO Disposition, as well as any recovery
resulting from a partial collection of Insurance Proceeds, Condemnation
Proceeds, Liquidation Proceeds or Subsequent Recoveries or any income from
an
REO Property, will be applied in the following order of priority: first,
to
reimburse the Servicer or any Subservicer for any related unreimbursed Servicing
Advances, pursuant to Section 3.11 or 3.17; second,
to
reimburse the Servicer for any related xxxxxxxxxxxx X&X Advances, pursuant
to Section 3.11; third,
to
accrued and unpaid interest on the Mortgage Loan or REO Imputed Interest, at
the
Mortgage Rate, to the date of the liquidation or REO Disposition, or to the
Due
Date prior to the Remittance Date on which such amounts are to be distributed
if
not in connection with a liquidation or REO Disposition; and fourth,
as a
recovery of principal of the Mortgage Loan. If the amount of the recovery so
allocated to interest is less than a full recovery thereof, that amount will
be
allocated as follows: first,
to
unpaid Servicing Fees; and second,
as
interest at the Mortgage Rate (net of the Servicing Fee Rate). The portion
of
the recovery so allocated to unpaid Servicing Fees shall be reimbursed to the
Servicer or any Subservicer pursuant to Section 3.11 or 3.17. The portions
of the recovery so allocated to interest at the Mortgage Rate (net of the
Servicing Fee Rate) and to principal of the Mortgage Loan shall be applied
as
follows: first,
to
reimburse the Servicer or any Subservicer for any related unreimbursed Servicing
Advances in accordance with Section 3.11 or 3.17, and second,
to the
Securities Administrator in accordance with the provisions of Section 4.02,
subject to paragraph (e) of Section 3.17 with respect to certain
excess recoveries from an REO Disposition.
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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 Servicer has
received actual notice of, or has actual knowledge of the presence of, hazardous
or toxic substances or wastes on the related Mortgaged Property, or if the
Trustee or the Master Servicer otherwise requests, the Servicer shall cause
an
environmental inspection or review of such Mortgaged Property to be conducted
by
a qualified inspector. Upon completion of the inspection, the Servicer shall
promptly provide the Trustee, the Master Servicer and the Depositor with a
written report of the environmental inspection.
After
reviewing the environmental inspection report, the Servicer shall determine
consistent with Accepted Servicing Practices how to 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 Servicer proceeds with foreclosure or
acceptance of a deed in lieu of foreclosure, the Servicer 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 Servicer, the Servicer shall
be
entitled to be reimbursed from amounts in the Collection Account pursuant to
Section 3.11. In the event the Servicer does not proceed with foreclosure
or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed
from general collections for all Servicing Advances made with respect to the
related Mortgaged Property from the Collection Account pursuant to
Section 3.11. The Trustee shall not be responsible for any determination
made by the Servicer pursuant to this paragraph or otherwise.
Section
3.16 Release
of Mortgage Files.
(a) Upon the payment in full of any Mortgage Loan, or the receipt by
the Servicer of a notification that payment in full shall be escrowed in a
manner customary for such purposes, the Servicer will, within five
(5) Business Days of the payment in full, notify the Custodian by a
certification (which certification shall include a statement to the effect
that
all amounts received or to be received in connection with such payment which
are
required to be deposited in the Collection Account pursuant to Section 3.10
have been or will be so deposited) of a Servicing Officer and shall request
delivery to it of the Custodial File by submitting a Request for Release, which
Request for Release may be in an electronic format in a form acceptable to
the
Custodian, to the Custodian. Upon receipt of such certification and Request
for
Release, the Custodian shall promptly release the related Custodial File to
the
Servicer within five (5) Business Days. No expenses incurred in connection
with
any instrument of satisfaction or deed of reconveyance shall be chargeable
to
the Collection Account.
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(b) From
time
to time and as appropriate for the servicing or foreclosure of any Mortgage
Loan, including, for this purpose, collection under any Insurance Policy
relating to the Mortgage Loans, the Custodian shall, upon request of the
Servicer and delivery to the Custodian of a Request for Release, which Request
for Release may be in an electronic format in a form acceptable to the
Custodian, release the related Custodial File to the Servicer, and the Custodian
shall, at the direction of the Servicer, execute such documents as shall be
necessary to the prosecution of any such proceedings and the Servicer shall
retain the Mortgage File in trust for the benefit of the Trustee. Such Request
for Release shall obligate the Servicer to return each and every document
previously requested from the Custodial File to the Custodian when the need
therefor by the Servicer no longer exists, unless the Mortgage Loan has been
liquidated and the Liquidation Proceeds relating to the Mortgage Loan have
been
deposited in the Collection Account or the Mortgage File or such document has
been delivered to an attorney, or to a public trustee or other public official
as required by law, for purposes of initiating or pursuing legal action or
other
proceedings for the foreclosure of the Mortgaged Property either judicially
or
non-judicially, and the Servicer has delivered to the Custodian a certificate
of
a Servicing Officer certifying as to the name and address of the Person to
which
such Mortgage File or such document was delivered and the purpose or purposes
of
such delivery. Upon receipt of a certificate of a Servicing Officer stating
that
such Mortgage Loan was liquidated and that all amounts received or to be
received in connection with such liquidation that are required to be deposited
into the Collection Account have been so deposited, or that such Mortgage Loan
has become an REO Property, a copy of the Request for Release shall be released
by the Custodian to the Servicer or its designee.
Upon
written certification of a Servicing Officer, the Trustee shall execute and
deliver to the Servicer copies of any court pleadings, requests for trustee’s
sale or other documents reasonably necessary to the foreclosure or trustee’s
sale in respect of a Mortgaged Property or to any legal action brought to obtain
judgment against any Mortgagor on the Credit Line Agreement or Mortgage or
to
obtain a deficiency judgment, or to enforce any other remedies or rights
provided by the Credit Line Agreement or Mortgage or otherwise available at
law
or in equity, or shall exercise and deliver to the Servicer a power of attorney
sufficient to authorize the Servicer to execute such documents on its behalf.
Each such certification shall include a request that such pleadings or documents
be executed by the Trustee and a statement as to the reason such documents
or
pleadings are required and that the execution and delivery thereof by the
Trustee will not invalidate or otherwise affect the lien of the Mortgage, except
for the termination of such a lien upon completion of the foreclosure or
trustee’s sale.
Section
3.17 Title,
Conservation and Disposition of REO Property.
(a) This Section shall apply only to REO Properties acquired for the
account of the Trustee and shall not apply to any REO Property relating to
a
Mortgage Loan which was purchased or repurchased from the Trustee pursuant
to
any provision hereof. In the event that title to any such REO Property is
acquired, the deed or certificate of sale shall be issued to the Trust, or
if
not permitted by law, to [ ] (or, if applicable, the name of
the successor Trustee) as Trustee for Structured Asset Securities Corporation
Trust [ ] Mortgage Pass-Through Certificates, Series
[ ], or to its nominee, for the benefit of the
Certificateholders.
(b) The
Servicer shall manage, conserve, protect and operate each REO Property for
the Trustee solely for the purpose of its prompt disposition and sale. The
Servicer, either itself or through an agent selected by the Servicer, 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 locality
as the REO Property is managed. The Servicer 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 Servicer deems
to
be in the best interest of the Trustee on behalf of the Certificateholders.
The
Servicer shall notify the Trustee from time to time as to the status of each
REO
Property.
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(c) The
Servicer shall segregate and hold all funds collected and received in connection
with the operation of any REO Property separate and apart from its own funds
and
general assets and shall deposit such funds in the Collection
Account.
(d) The
Servicer shall deposit net of reimbursement to the Servicer for any related
outstanding Servicing Advances and unpaid Servicing Fees provided in
Section 3.11, or cause to be deposited in the Collection Account, in no
event later than two Business Days after the deposit of such funds into the
clearing account, all revenues received with respect to the related REO Property
and shall withdraw therefrom funds necessary for the proper operation,
management and maintenance of the REO Property.
(e) The
Servicer, upon an REO Disposition, shall be entitled to reimbursement for any
related unreimbursed Servicing Advances as well as any unpaid Servicing Fees
from proceeds received in connection with the REO Disposition, as further
provided in Section 3.11.
(f) Any
net
proceeds from an REO Disposition which are in excess of the unpaid principal
balance of the related Mortgage Loan plus all unpaid REO Imputed Interest
thereon through the date of the REO Disposition shall be retained by the
Servicer as additional servicing compensation.
(g) The
Servicer shall use Accepted Servicing Practices to sell, or cause the
Subservicer to sell, in accordance with Accepted Servicing Practices, any REO
Property as soon as possible, but in no event later than the conclusion of
the
third calendar year beginning after the year of its acquisition by the [Lower
Tier] REMIC unless (i) the Servicer applies for an extension of such period
from the Internal Revenue Service pursuant to the REMIC Provisions and Code
Section 856(e)(3), in which event such REO Property shall be sold within
the applicable extension period, or (ii) the Servicer obtains for the
Trustee an Opinion of Counsel, addressed to the Depositor, the Trustee and
the
Servicer, to the effect that the holding by the REMIC of such REO Property
subsequent to such period will not result in the imposition of taxes on
“prohibited transactions” as defined in Section 860F of the Code or cause
any REMIC created under this Agreement to fail to qualify as a REMIC under
the
REMIC Provisions or comparable provisions of relevant state laws at any time.
The Servicer shall manage, conserve, protect and operate each REO Property
for
the Trustee solely for the purpose of its prompt disposition and sale in a
manner which does not cause such REO Property to fail to qualify as “foreclosure
property” within the meaning of Section 860G(a)(8) or result in the receipt
by any REMIC created hereunder of any “income from non-permitted assets” within
the meaning of Section 860F(a)(2)(B) of the Code or any “net income from
foreclosure property” which is subject to taxation under Section 860G(a)(1)
of the Code. Pursuant to its efforts to sell such REO Property, the Servicer
shall either itself or through an agent selected by the Servicer protect and
conserve such REO Property in the same manner and to such extent as is customary
in the locality where such REO Property is located and may, incident to its
conservation and protection of the interests of the Trustee on behalf of the
Certificateholders, rent the same, or any part thereof, as the Servicer deems
to
be in the best interest of the Trustee on behalf of the Certificateholders
for
the period prior to the sale of such REO Property; provided,
however,
that
any rent received or accrued with respect to such REO Property qualifies as
“rents from real property” as defined in Section 856(d) of the
Code.
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Section
3.18 Notification
of Adjustments.
With
respect to each Adjustable Rate Mortgage Loan, the Servicer shall adjust the
Mortgage Rate on the related Adjustment Date and shall adjust the Scheduled
Payment on the related mortgage payment adjustment date, if applicable, in
compliance with the requirements of applicable law and the related Mortgage
and
Credit Line Agreement. In the event that an Index becomes unavailable or
otherwise unpublished, the Servicer shall select a comparable alternative index
over which it has no direct control and which is readily verifiable. The
Servicer shall execute and deliver any and all necessary notices required under
applicable law and the terms of the related Credit Line Agreement and Mortgage
regarding the Mortgage Rate and Scheduled Payment adjustments. The Servicer
shall promptly, upon written request therefor, deliver to the Master Servicer
such notifications and any additional applicable data regarding such adjustments
and the methods used to calculate and implement such adjustments. Upon the
discovery by the Servicer or the receipt of notice from the Master Servicer
that
the Servicer has failed to adjust a Mortgage Rate or Scheduled Payment in
accordance with the terms of the related Credit Line Agreement, the Servicer
shall deposit in the Collection Account from its own funds the amount of any
interest loss caused as such interest loss occurs.
Section
3.19 Access
to Certain Documentation and Information Regarding the Mortgage
Loans.
The
Servicer shall provide, or cause the Subservicer to provide, to the Depositor,
the Trustee, the OTS or the FDIC and the examiners and supervisory agents
thereof, access to the documentation regarding the Mortgage Loans in its
possession required by applicable regulations of the OTS. Such access shall
be
afforded without charge, but only upon 10 days (or, if an Event of Default
has
occurred and is continuing, 3 Business Days) prior written request and during
normal business hours at the offices of the Servicer or, if applicable, any
Subservicer. Nothing in this Section shall derogate from the obligation of
any
such party to observe any applicable law prohibiting disclosure of information
regarding the Mortgagors and the failure of any such party to provide access
as
provided in this Section as a result of such obligation shall not
constitute a breach of this Section.
Nothing
in this Section 3.19 shall require the Servicer to collect, create, collate
or
otherwise generate any information that it does not generate in its usual course
of business. The Servicer shall not be required to make copies of or to ship
documents to any Person who is not a party to this Agreement, and then only
if
provisions have been made for the reimbursement of the costs
thereof.
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Section
3.20 Documents,
Records and Funds in Possession of the Servicer to Be Held for the
Trustee.
Not
later than thirty days after each Distribution Date, the Servicer shall
forward to the Trustee, the Master Servicer and the Securities Administrator
a
statement prepared by the Servicer setting forth the status of the Collection
Account as of the close of business on the last day of the calendar month
relating to such Distribution Date and showing, for the period covered by
such
statement, the aggregate amount of deposits into and withdrawals from the
Collection Account of each category of deposit specified in Section 3.10(a)
and each category of withdrawal specified in Section 3.11. Such statement
shall be provided substantially in the form of Exhibit N-1 hereto. Copies
of such statement shall be provided by the Securities Administrator to any
Certificateholder and to any Person identified to the Securities Administrator
as a prospective transferee of a Certificate, upon the request and at the
expense of the requesting party, provided such statement is delivered by
the
Servicer to the Securities Administrator.
Section
3.21 Servicing
Compensation.
(a) As compensation for its activities hereunder, the Servicer shall,
with respect to each Mortgage Loan, be entitled to retain from deposits to
the
Collection Account and from Liquidation Proceeds, Condemnation Proceeds,
Insurance related Proceeds, Subsequent Recoveries and REO Proceeds related
to
such Mortgage Loan, the Servicing Fee with respect to each Mortgage Loan (less
any portion of such amounts retained by any Subservicer). In addition, the
Servicer shall be entitled to recover unpaid Servicing Fees out of related
Late
Collections and as otherwise permitted under Section 3.11. The right to
receive the Servicing Fee may not be transferred in whole or in part except
in
connection with the transfer of all of the Servicer’s responsibilities and
obligations under this Agreement; provided,
however,
that
the Servicer may pay from the Servicing Fee any amounts due to a Subservicer
pursuant to a Subservicing Agreement entered into under
Section 3.02.
(b) Additional
servicing compensation in the form of assumption or modification fees, late
payment charges, NSF fees, reconveyance fees and other similar fees and charges
(other than Prepayment Charges) shall be retained by the Servicer only to the
extent such fees or charges are received by the Servicer. The Servicer shall
also be entitled pursuant to Section 3.11(a)(iv) to withdraw from the
Collection Account, as additional servicing compensation, interest or other
income earned on deposits therein. The Servicer shall also be entitled as
additional servicing compensation, to interest or other income earned on
deposits in the Escrow Account (to the extent permitted by law and the related
Mortgage Loan documents) in accordance with Section 3.12. The Servicer
shall also be entitled to retain net Prepayment Interest Excesses (to the extent
not required to offset Prepayment Interest Shortfalls), but only to the extent
such amounts are received by the Servicer.
(c) The
Servicer shall be required to pay all expenses incurred by it in connection
with
its servicing activities hereunder (including payment of premiums for any
blanket policy insuring against hazard losses pursuant to Section 3.13,
servicing compensation of the Subservicer to the extent not retained by it
and
the fees and expenses of independent accountants and any agents appointed by
the
Servicer), and shall not be entitled to reimbursement therefor from the Trust
Fund except as specifically provided in Section 3.11.
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Section
3.22 Report
on Assessment of Compliance with Relevant Servicing Criteria.
On or
prior to the Closing Date, the Servicer shall deliver to the Sponsor, the Master
Servicer, the Securities Administrator and the Depositor a certification in
the
form of Exhibit S attached hereto regarding the items it will address in its
assessment of compliance with the Servicing Criteria under this Section 3.22.
On
or before March [1] of each calendar year, beginning with March [1],
20[ ], the Servicer shall deliver to the Master Servicer, the
Securities Administrator and the Depositor a report (in form and substance
reasonably satisfactory to the Depositor and the Securities Administrator)
regarding its assessment of compliance with the Relevant Servicing Criteria
identified in Exhibit S attached hereto, as of and for the period ending the
end
of the fiscal year ending no later than [December 31] of the year prior to
the
year of delivery of the report, with respect to asset-backed security
transactions taken as a whole in which the Servicer is performing any of the
Servicing Criteria specified in Exhibit S and that are backed by the same asset
type backing such asset-backed securities. Each such report shall include (a)
a
statement of the party’s responsibility for assessing compliance with the
Relevant Servicing Criteria applicable to such party, (b) a statement that
such
party used the criteria identified in Item 1122(d) of Regulation AB (§
229.1122(d)) to assess compliance with the Relevant Servicing Criteria, (c)
disclosure of any material instance of noncompliance identified by such party,
and (d) a statement that a registered public accounting firm has issued an
attestation report on such party’s assessment of compliance with the Relevant
Servicing Criteria, which report shall be delivered by the Servicer as provided
in Section 3.23 hereto. In addition, on or before March 1st
of each
calendar year, beginning with March [1], 20[ ], the Servicer shall,
at its own expense, furnish to the Master Servicer a report meeting the
requirements set forth above regarding the assessment of compliance of any
Subservicer or Subcontractor which is a Servicing Function Participant (each,
without respect to any threshold limitations in Instruction 2 to Item 1122
of
Regulation AB).
Promptly
after receipt of each such report on assessment of compliance, (i) the Depositor
shall review each such report and, if applicable, consult with the Master
Servicer, the Securities Administrator, the Trustee and any Servicing Function
Participant engaged by such parties as to the nature of any material instance
of
noncompliance with the Relevant Servicing Criteria by each such party, and
(ii)
the Securities Administrator shall confirm that the assessments, taken as a
whole, address all of the Servicing Criteria and taken individually address
the
Relevant Servicing Criteria for each party as set forth on Exhibit S and on
any
similar exhibit set forth in any servicing or sub-servicing agreement in respect
of any Servicing Function Participant and notify the Depositor of any
exceptions. None of such parties shall be required to deliver any such
assessments until [April 15] in any given year so long as it has received
written confirmation from the Depositor that a Form 10-K is not required to
be
filed with the Commission in respect of the Trust for the preceding calendar
year.
Section
3.23 Report
on Attestation of Compliance with Relevant Servicing Criteria.
On or
before [March 1st]
of each
calendar year, beginning with [March 1], 20[ ], the Servicer shall,
at its own expense, cause a firm of independent public accountants (who may
also
render other services to Servicer), which is a member of the American Institute
of Certified Public Accountants, to furnish to the Master Servicer, the
Securities Administrator and the Depositor (i) year-end audited (if available)
financial statements of the Servicer and (ii) a report to the effect that such
firm that attests to, and reports on, the assessment made by such asserting
party pursuant to Section 3.22 above, which report shall be made in accordance
with standards for attestation engagements issued or adopted by the PCAOB.
In
addition, on or before March [1st]
of each
calendar year, beginning with [March 1], 20[ ], the Servicer shall,
at its own expense, furnish to the Master Servicer a report meeting the
requirements of clause (ii) above regarding the attestation of any Subservicer
or Subcontractor which is a Servicing Function Participant (each, without
respect to any threshold limitations in Instruction 2. to Item 1122 of
Regulation AB).
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Promptly
after receipt of such report from the Servicer, the Master Servicer, the
Securities Administrator or any Servicing Function Participant engaged by such
parties, (i) the Depositor shall review the report and, if applicable, consult
with such parties as to the nature of any defaults by such parties, in the
fulfillment of any of each such party’s obligations hereunder or under any other
applicable agreement, and (ii) the Securities Administrator shall confirm that
each assessment submitted pursuant to Section 3.22 is coupled with an
attestation meeting the requirements of this Section and notify the Depositor
of
any exceptions. None of the Master Servicer, the Securities Administrator,
the
Trustee or any Servicing Function Participant engaged by such parties shall
be
required to deliver or cause the delivery of such reports until [April 15]
in
any given year so long as it has received written confirmation from the
Depositor that a Form 10-K is not required to be filed in respect of the Trust
for the preceding fiscal year.
Section
3.24 Annual
Officer’s Certificates.
(a) Each
Form 10-K filed with the Commission shall include a certification (the
“Xxxxxxxx-Xxxxx
Certification”),
exactly as set forth in Exhibit L attached hereto, required to be included
therewith pursuant to the Xxxxxxxx-Xxxxx Act. The Servicer and the Securities
Administrator shall, and shall cause any Servicing Function Participant engaged
by it to, provide to the Master Servicer or any Person who signs the
Xxxxxxxx-Xxxxx Certification (the “Certifying
Person”),
by
[March 10] of each year in which the Trust is subject to the reporting
requirements of the Exchange Act and otherwise within a reasonable period of
time upon request, a certification (each, a “Back-Up
Certification”),
in
the form attached hereto as Exhibit M, upon which the Certifying Person, the
entity for which the Certifying Person acts as an officer, and such entity’s
officers, directors and Affiliates (collectively with the Certifying Person,
“Certification
Parties”)
can
reasonably rely. In the event the Master Servicer, the Securities Administrator,
the Trustee or any Servicing Function Participant engaged by parties is
terminated or resigns pursuant to the terms of this Agreement, or any applicable
sub-servicing agreement, as the case may be, such party shall provide a Back-Up
Certification to the Certifying Person pursuant to this Section 3.24 with
respect to the period of time it was subject to this Agreement or any applicable
sub-servicing agreement, as the case may be.
(b) On
or
before [March 1st]
of each
year, beginning with [March 1], 20[ ], the Servicer, at its own
expense, will deliver to the Securities Administrator and the Depositor with
respect to the period ending on the immediately preceding [December 31], a
Servicing Officer’s certificate in the form of Exhibit U hereto.
(c) The
Servicer shall indemnify and hold harmless the Trustee, the Master Servicer,
the
Securities Administrator, the Depositor and their respective officers,
directors, agents and affiliates from and against any losses, damages,
penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments and other costs and expenses arising out of or based upon a breach
by
the Servicer or any of its officers, directors, agents or affiliates of its
obligations under this Section 3.24 or the negligence, bad faith or willful
misconduct of the Servicer in connection therewith. If the indemnification
provided for herein is unavailable or insufficient to hold harmless the Trustee,
the Master Servicer, the Securities Administrator and the Depositor, then the
Servicer agrees that it shall contribute to the amount paid or payable by the
Trustee, the Master Servicer, the Securities Administrator, the Depositor or
their respective officers, directors, agents or affiliates as a result of the
losses, claims, damages or liabilities of any such party in such proportion
as
is appropriate to reflect the relative fault of the such party or parties on
the
one hand and the Servicer on the other in connection with a breach of the
Servicer’s obligations under this Section 3.24 or the Servicer’s negligence, bad
faith or willful misconduct in connection therewith.
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Section
3.25 Master
Servicer to Act as Servicer.
(a) Subject to Section 7.02, in the event that the Servicer
shall for any reason no longer be the Servicer hereunder (including by reason
of
an Event of Default), the Master Servicer or its successor shall thereupon
assume all of the rights and obligations of the Servicer hereunder arising
thereafter, except that the Master Servicer shall not be (i) liable for
losses of the predecessor Servicer pursuant to Section 3.10 or any acts or
omissions of the predecessor Servicer hereunder, (ii) obligated to
effectuate repurchases or substitutions of Mortgage Loans hereunder, including
but not limited to repurchases or substitutions pursuant to Section 2.03,
(iii) responsible for expenses of the predecessor Servicer pursuant to
Section 2.03 or (iv) deemed to have made any representations and
warranties of the Servicer hereunder. Any such assumption shall be subject
to
Section 7.02.
(b) Every
Subservicing Agreement entered into by the Servicer shall contain a provision
giving the successor servicer the option to terminate such agreement in the
event a successor servicer is appointed.
(c) If
the
Servicer shall for any reason no longer be the Servicer (including by reason
of
any Event of Default), the Master Servicer (or any other successor servicer)
may, at its option, succeed to any rights and obligations of the Servicer under
any Subservicing Agreement in accordance with the terms thereof; provided,
that
the Master Servicer (or any other successor servicer) shall not incur any
liability or have any obligations in its capacity as successor servicer under
a
Subservicing Agreement arising prior to the date of such succession unless
it
expressly elects to succeed to the rights and obligations of the Servicer
thereunder; and the Servicer shall not thereby be relieved of any liability
or
obligations under the Subservicing Agreement arising prior to the date of such
succession.
(d) The
Servicer shall, upon request of the Master Servicer, but at the expense of
the
Servicer, deliver to the assuming party all documents and records relating
to
each Subservicing Agreement (if any) and the Mortgage Loans then being serviced
thereunder and an accounting of amounts collected and held by it, and otherwise
use its best efforts to effect the orderly and efficient transfer of the
Subservicing Agreement to the assuming party.
Section
3.26 Compensating
Interest.
The
Servicer shall remit to the Master Servicer on each Remittance Date an amount
from its own funds equal to the Compensating Interest payable by the Servicer
for the related Distribution Date.
Section
3.27 Credit
Reporting; Xxxxx-Xxxxx-Xxxxxx Act.
(a) With respect to each Mortgage Loan serviced by it, the Servicer
agrees to fully furnish, in accordance with the Fair Credit Reporting Act and
its implementing regulations, accurate and complete information (e.g., favorable
and unfavorable) on the primary borrower of such Mortgage Loan to Equifax,
Experian and TransUnion Credit Information Company (three of the credit
repositories) on a monthly basis.
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(b) The
Servicer shall comply with Title V of the Xxxxx-Xxxxx-Xxxxxx Act of 1999
and all applicable regulations promulgated thereunder, relating to the Mortgage
Loans and the related borrowers and shall provide all required notices
thereunder.
Section
3.28 Maintenance
of the Bulk PMI Policy.
[Reserved]
Section
3.29 Notifications
to Parties.
The
Servicer shall promptly notify the Trustee, the Securities Administrator, the
Master Servicer and the Depositor (i) of any legal proceedings pending against
the Servicer of the type described in Item 1117 (§ 229.1117) of Regulation AB
and (ii) if the Servicer shall become (but only to the extent not previously
disclosed to the Securities Administrator, the Master Servicer and the
Depositor) at any time an affiliate of any of the parties listed on Exhibit
T to
this Agreement. If so requested by the Trustee, the Securities Administrator,
the Master Servicer or the Depositor on any date following the date on which
information was first provided to the Trustee, the Master Servicer, the
Securities Administrator and the Depositor, pursuant to the preceding sentence,
the Servicer shall within [five] Business Days following such request, confirm
in writing the accuracy of the representations and warranties set forth in
paragraph (e) of Schedule
II
hereto,
or, the Servicer shall, if such a representation and warranty is not accurate
as
of the date of such request, provide reasonable adequate disclosure of the
pertinent facts, in writing, to the requesting party.
The
Servicer shall provide to the Securities Administrator, the Trustee, the Master
Servicer and the Depositor prompt notice of the occurrence of any of the
following: (i) any event of default under the terms of this Agreement; (ii)
any
merger, consolidation or sale of substantially all of the assets of the
Servicer; (iii) the Servicer’s engagement of any Subservicer, Subcontractor or
vendor to perform or assist in the performance of any of the Servicer’s
obligations under this Agreement; (iv) any material litigation involving the
Servicer; and (v) any affiliation or other significant relationship between
the
Servicer and other transaction parties.
Not
later
than the [tenth] calendar day of each month (or if such calendar day is not
a
Business Day, the immediately preceding Business Day), the Servicer shall
provide to the Securities Administrator, the Trustee, the Master Servicer and
the Depositor notice of the occurrence of any material modifications, extensions
or waivers of terms, fees, penalties or payments relating to the Mortgage Loans
during the related Due Period or that have cumulatively become material over
time (see Item 1121(a)(11) of Regulation AB) along with all information, data,
and materials related thereto as may be required to be included in the related
Monthly Statement filed with the Commission on Form 10-D.
Section
3.30 Obligations
of the Custodian; Indemnification.
(a) On
or before [March 1st]
of each
calendar year, beginning with [March 1], 20[ ], the Custodian shall,
at its own expense, cause a firm of independent public accountants (who may
also
render other services to the Custodian), which is a member of the American
Institute of Certified Public Accountants, to furnish to the Depositor a report
to the effect that such firm that attests to, and reports on, the assessment
made by such asserting party pursuant paragraph (b) of this Section 3.29 below,
which report shall be made in accordance with standards for attestation
engagements issued or adopted by the PCAOB.
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(b) On
or
prior to the Closing Date, the Custodian shall deliver to the Depositor and
the
Securities Administrator, a certification in the form of Exhibit S attached
hereto regarding the items it will address in its assessment of compliance
with
the Servicing Criteria under this Section 3.30(b). On or before [March 1] of
each calendar year, beginning with [March 1], 20[ ], the Custodian shall
deliver to the Depositor and the Securities Administrator a report regarding
its
assessment of compliance with the Relevant Servicing Criteria identified in
Exhibit S attached hereto, as of and for the period ending the end of the fiscal
year ending no later than [December 31] of the year prior to the year of
delivery of the report, with respect to asset-backed security transactions
taken
as a whole in which the Custodian is performing any of the Relevant Servicing
Criteria specified in Exhibit S and that are backed by the same asset type
backing such asset-backed securities. Each such report shall include (a) a
statement of the party’s responsibility for assessing compliance with the
Relevant Servicing Criteria applicable to such party, (b) a statement that
such
party used the Servicing Criteria identified in Item 1122(d) of Regulation
AB (§
229.1122(d)) to assess compliance with the Relevant Servicing Criteria, (c)
disclosure of any material instance of noncompliance identified by such party,
and (d) a statement that a registered public accounting firm has issued an
attestation report on such party’s assessment of compliance with the Relevant
Servicing Criteria, which report shall be delivered by the Custodian as provided
in Section 3.23.
(c) The
Custodian has not and shall not engage any Subcontractor which is a “Servicing
Function Participant.”
(d) The
Custodian agrees to indemnify the Depositor and the Trustee, and each of their
respective directors, officers, employees and agents and the Trust Fund and
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 the engagement of any Subcontractor in violation of Section 3.30(c) or
any
failure by the Custodian to deliver any information, report, certification,
accountants’ letter or other material when and as required under this Agreement,
including any report under Sections 3.30(a) or (b).
ARTICLE
IV
DISTRIBUTIONS
AND
ADVANCES
BY THE SERVICER
Section
4.01 Advances.
(a) The amount of P&I Advances to be made by the Servicer for any
Remittance Date shall equal, subject to Section 4.01(c), the sum of
(i) the aggregate amount of Scheduled Payments (with each interest portion
thereof net of the related Servicing Fee), due during the Due Period immediately
preceding such Remittance Date in respect of the Mortgage Loans, which Scheduled
Payments were not received as of the close of business on the related
Determination Date, plus (ii) with respect to each REO Property, which REO
Property was acquired during or prior to the related Prepayment Period and
as to
which such REO Property an REO Disposition did not occur during the related
Prepayment Period, an amount equal to the excess, if any, of the Scheduled
Payments (with each interest portion thereof net of the related Servicing Fee)
that would have been due on the related Due Date in respect of the related
Mortgage Loans, over the net income from such REO Property transferred to the
Collection Account for distribution on such Remittance Date.
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(b) On
each
Remittance Date, the Servicer shall remit in immediately available funds to
the
Master Servicer an amount equal to the aggregate amount of P&I Advances, if
any, to be made in respect of the Mortgage Loans and REO Properties for the
related Remittance Date either (i) from its own funds or (ii) from the
Collection Account, to the extent of funds held therein for future distribution
(in which case, it will cause to be made an appropriate entry in the records
of
the Collection Account that Amounts Held for Future Distribution have been,
as
permitted by this Section 4.01, used by it in discharge of any such P&I
Advance) or (iii) in the form of any combination of (i) and
(ii) aggregating the total amount of P&I Advances to be made by the
Servicer with respect to the Mortgage Loans and REO Properties. Any Amounts
Held
for Future Distribution and so used shall be appropriately reflected in the
Servicer’s records and replaced by the Servicer by deposit in the Collection
Account on or before any future Remittance Date to the extent
required.
(c) The
obligation of the Servicer to make such P&I Advances is mandatory,
notwithstanding any other provision of this Agreement but subject to
(d) below, and, with respect to any Mortgage Loan or REO Property, shall
continue until a Final Recovery Determination in connection therewith or the
removal thereof from coverage under this Agreement, except as otherwise provided
in this Section.
(d) Notwithstanding
anything herein to the contrary, no P&I Advance or Servicing Advance shall
be required to be made hereunder by the Servicer if such P&I Advance or
Servicing Advance would, if made, constitute a Nonrecoverable P&I Advance or
Nonrecoverable Servicing Advance. The determination by the Servicer that it
has
made a Nonrecoverable P&I Advance or a Nonrecoverable Servicing Advance or
that any proposed P&I Advance or Servicing Advance, if made, would
constitute a Nonrecoverable P&I Advance or a Nonrecoverable Servicing
Advance, respectively, shall be evidenced by an Officer’s Certificate of the
Servicer delivered to the Master Servicer. In addition, the Servicer shall
not
be required to advance any Relief Act Interest Shortfalls.
(e) Except
as
otherwise provided herein, the Servicer shall be entitled to reimbursement
pursuant to Section 3.11 for Servicing Advances from recoveries from the
related Mortgagor or from all Liquidation Proceeds and other payments or
recoveries (including Insurance Proceeds, Condemnation Proceeds and Subsequent
Recoveries) with respect to the related Mortgage Loan.
(f) On
each
Remittance Date, the Master Servicer shall deposit in the Distribution Account
all funds remitted to it by the Servicer pursuant to Sections 3.11(a)(i) and
3.26 and this Section 4.01. The Securities Administrator may retain or withdraw
from the Distribution Account, (i) the Master Servicing Fee, (ii) amounts
necessary to reimburse the Servicer for any previously unreimbursed Advances
and
any Advances the Servicer deems to be nonrecoverable from the related Mortgage
Loan proceeds, (iii) amounts necessary to reimburse the Master Servicer for
any
previously unreimbursed Advances and any Advances the Master Servicer deems
to
be nonrecoverable from the related Mortgage Loan proceeds, (iv) an amount to
indemnify the Master Servicer or the Servicer for amounts due in accordance
with
this Agreement, and (v) any other amounts that each of the Master Servicer
and
the Securities Administrator is entitled to receive hereunder for reimbursement,
indemnification or otherwise.
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Section
4.02 Priorities
of Distribution.
(a) On each Distribution Date, the Securities Administrator will make
the disbursements and transfers from amounts then on deposit in the Distribution
Account and from amounts that are available for payment to the Swap
Counterparty, and shall allocate such amounts to the interests issued in respect
of each REMIC created pursuant to this Agreement and shall distribute such
amounts in the following order of priority and to the extent of the Available
Funds remaining:
(i) [to
the
Supplemental Interest Trust and the holders of each Class of LIBOR
Certificates in the following order of priority:
(A) from
the
Interest Remittance Amount, for deposit into the Supplemental Interest Trust
Account, the amount of any Net Swap Payment or Swap Termination Payment (other
than a Swap Termination Payment caused by the Swap Counterparty) owed to the
Swap Counterparty, including any such amounts unpaid from previous Distribution
Dates;
(B) concurrently:
(1)
from
the Interest Remittance Amount related to the [Group I] Mortgage Loans, to
the
Class [ ] Certificates, the related Senior Interest Payment Amount;
and
(2)
from
the Interest Remittance Amount related to the [Group II] Mortgage Loans, to
the
Class [ ] and Class [ ] Certificates, pro
rata,
(based
on the amounts distributable under this clause (i)(B)(2)) the related Senior
Interest Payment Amount for such Classes of such Certificates on such
Distribution Date;
provided, that,
if the
Interest Remittance Amount for any Loan Group is insufficient to make the
related payments set forth in clauses (i)(B)(1)or (i)(B)(2) above, any Interest
Remittance Amount relating to the other Loan Group remaining after payment
of
the related Senior Interest Payment Amount will be available to cover that
shortfall; and
(C) from
any
remaining Interest Remittance Amounts, sequentially, to each Class of Class
[ ] Certificates, in ascending order by numerical Class
designation;]
[To
be
modified in accordance with the structure of the related
transaction.]
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(ii) [(A) on
each Distribution Date (1) before the Stepdown Date or (2) with
respect to which a Trigger Event is in effect, to the Supplemental Interest
Trust and to the holders of the Class or Classes of LIBOR Certificates then
entitled to distributions of principal as set forth below, from amounts
remaining on deposit in the Distribution Account after making distributions
pursuant to clause (i) above, an amount equal to, in the aggregate,
the Principal Payment Amount in the following amounts and order of
priority:
(a) for
deposit into the Supplemental Interest Trust Account, any Net Swap Payment
or
Swap Termination Payment (other than a Swap Termination Payment caused by the
Swap Counterparty) owed to the Swap Counterparty to the extent unpaid pursuant
to clause (i)(A) above;
(b) concurrently:
(1)
to
the Class [ ] Certificates, the [Group I] Principal Payment Amount,
until the Class Certificate Balance of the Class [ ] Certificates is
reduced to zero; and
(2)
to
the [Group II] Certificates, the [Group II] Principal Payment Amount, allocated
as described in Section 4.02(c), until their respective Class Certificate
Balances are reduced to zero;
(c) sequentially,
to each Class of Class [ ] Certificates, in ascending order by
numerical Class designation, until their respective Class Certificate
Balances are reduced to zero;
(B) on
each
Distribution Date (1) on and after the Stepdown Date and (2) as long
as a Trigger Event is not in effect, to the Supplemental Interest Trust and
to
the holders of the Class or Classes of LIBOR Certificates then entitled to
distribution of principal, from amounts remaining on deposit in the Distribution
Account after making distributions pursuant to clause (i) above, an
amount equal to, in the aggregate, the Principal Payment Amount in the following
amounts and order of priority:
(a) for
deposit into the Supplemental Interest Trust Account, any Net Swap Payment
or
Swap Termination Payment (other than a Swap Termination Payment caused by the
Swap Counterparty) owed to the Swap Counterparty to the extent unpaid pursuant
to clause (i)(A) above;
(b) concurrently:
(1)
to
the Class [ ] Certificates, the [Group I] Senior Principal Payment
Amount, until the Class Certificate Balance of the Class [ ]
Certificates is reduced to zero;
-80-
(2)
to
the [Group II] Certificates, the [Group II] Senior Principal Payment Amount,
allocated as described in Section 4.02(c), until their respective Class
Certificate Balances are reduced to zero;
(c) sequentially,
to each Class of Class [ ] Certificates, in ascending order by
numerical Class designation, the Class [ ] Principal Payment
Amount for the related Class of Class [ ] certificates, until
their respective Class Certificate Balances are reduced to
zero;]
[To
be
modified in accordance with the structure of the related
transaction.]
(iii) [any
amounts remaining after the distributions in clauses (i) and (ii) above,
plus, as specifically indicated below, from amounts on deposit in the [Excess
Reserve Fund Account], shall be distributed in the following order of
priority:
(A) to
the
Class [ ] Certificates and the Class [ ] Certificates, in
the same order of priority set forth in clauses (ii)(A)(b), (ii)(A)(c),
(ii)(B)(b) and (ii)(B)(c) above, as applicable, the amount necessary to maintain
the Overcollateralization Target Amount for such Distribution Date;
(B) sequentially,
to the holders of the Class [ ] Certificates, in ascending order by
numerical Class designation, first
any
Interest Carry Forward Amount for that Class, and second,
any
Unpaid Realized Loss Amount for that Class;
(C) to
the
[Excess Reserve Fund Account], the amount of any Basis Risk Payment for such
Distribution Date;
(D) from
amounts on deposit in the [Excess Reserve Fund Account] with respect to such
Distribution Date, an amount equal to any unpaid Basis Risk Carryover Amount
with respect to the LIBOR Certificates for such Distribution Date, allocated
in
the same order and priority as set forth in clauses (a)(i)(B) and (a)(i)(C),
except that the Class [ ] Certificates will be paid (a) first,
pro rata,
based on
their respective Class Certificate Balances only with respect to the Class
[ ] Certificates with an outstanding Unpaid Basis Risk Carryover
Amount and second,
pro rata,
based on
any remaining unpaid Basis Risk Carryover Amounts;
(E) to
the
Swap Counterparty, any Swap Termination Payment caused by the Swap
Counterparty;
(F) to
the
holders of the Class [X] Certificates, the remainder of the Class [X]
Distributable Amount not distributed pursuant to
Sections 4.02(a)(iii)(A)-(E); and
(G) to
the
holders of the Class [R] Certificates, any remaining amount;]
[To
be
modified in accordance with the structure of the related
transaction.]
-81-
[If
on
any Distribution Date, as a result of the foregoing allocation rules, any
Class of Class [ ] Certificates does not receive in full
the related Interest Payment Amount or the related Interest Carry Forward
Amount, if any, then such shortfall will be allocated to the Holders of such
Class, with interest thereon, on future Distribution Dates, as Interest Carry
Forward Amounts, subject to the priorities described above.
[To
be
modified in accordance with the structure of the related
transaction.]
(b) [On
each
Distribution Date, prior to any distributions on any other Class of
Certificates, all amounts representing Prepayment Charges from the Mortgage
Loans received during the related Prepayment Period shall be distributed by
the
Securities Administrator to the holders of the Class [P]
Certificates.]
[To
be
modified in accordance with the structure of the related
transaction.]
(c) [Any
principal distributions to the holders of the Class [ ] Certificates
on any Distribution Date prior to the Stepdown Date will be allocated to the
Class [ ] Certificates, on the one hand, and the [Group II]
Certificates, on the other hand, based on the Group Principal Allocation
Percentage for such Certificate Groups. However, if the Class Certificate
Balances of the Class [ ] Certificates in either Certificate Group
are reduced to zero before the Stepdown Date, then the remaining amount of
principal distributions distributable to the Class [ ] Certificates
on that Distribution Date, and the amount of those principal distributions
distributable on all subsequent Distribution Dates, will be distributed to
the
holders of the Class [ ] Certificates in the other Certificate Group
remaining outstanding, in accordance with the principal distribution allocations
described in this section, until their Class Certificate Balances have been
reduced to zero. Any distributions of principal to the [Group I] Certificates
will be made first from payments relating to [Group I] Mortgage Loans, and
any
distributions of principal to the [Group II] Certificates will be made first
from payments relating to the [Group II] Mortgage Loans. If the Class
Certificate Balances of the Class [ ] Certificates in either
Certificate Group are reduced to zero on or after the Stepdown Date, then the
remaining amount of principal distributions distributable to the Class
[ ] Certificates on that Distribution Date will be distributed in
accordance with Section 4.02(a)(ii)(A)(b). Any principal distributions allocated
to the [Group II] Certificates will be allocated sequentially to the Class
[ ] and Class [ ] Certificates, in that order, until the
Class Certificate Balance of each such Class has been reduced to zero. However,
on and after the Distribution Date on which the aggregate Class Certificate
Balances of the Class [ ] Certificates been reduced to zero, any
principal distributions allocated to the [Group II] Certificates are required
to
be allocated pro
rata,
among
the Classes of [Group II] Certificates, based upon their respective Class
Certificate Balances.]
[To
be
modified in accordance with the structure of the related
transaction.]
(d) [On
any
Distribution Date, any Relief Act Shortfalls and Net Prepayment Interest
Shortfalls for such Distribution Date shall be allocated by the Securities
Administrator as a reduction in the following order:
(1) First,
to the
amount of interest payable to the Class [X] Certificates; and
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(2) Second,
pro
rata,
as a
reduction of the Interest Payment Amount for the Class [ ] and
Class [ ] Certificates, based on the amount of interest to which
such Classes would otherwise be entitled.]
[To
be
modified in accordance with the structure of the related
transaction.]
(e) [On
any
Distribution Date, the Securities Administrator shall distribute the
Supplemental Interest Trust Amount for such date as follows:
(i) to
the
Swap Counterparty, any Net Swap Payment owed to the Swap Counterparty pursuant
to the Swap Agreement for such Distribution Date to the extent not previously
paid in Sections 4.02(a)(i)(A), 4.02(a)(ii)(A) or 4.02(a)(ii)(B);
(ii) to
the
Swap Counterparty, any Swap Termination Payment not due to a Swap Counterparty
Trigger Event owned to the Swap Counterparty pursuant to the Swap Agreement
for
such Distribution Date;
(iii) to
the
Class [ ] Certificates and the Class [ ] Certificates, the
amount necessary to maintain the Overcollateralization Target Amount for such
Distribution Date as specified in clause (a)(iii)(A) of this Section 4.02,
for
application pursuant to the priorities set forth in such clause, after giving
effect to distributions pursuant to such clause;
(iv) to
the
extent not paid pursuant to clause (a)(iii)(B) of this Section 4.02,
sequentially, to the each Class of Class [ ] Certificates, in
ascending order by numerical Class designation, first,
any
Interest Carry Forward Amount for that Class, and second,
any
Unpaid Realized Loss Amount for that Class;
(v) to
the
extent not paid pursuant to clause (a)(iii)(C) of this Section 4.02, to the
[Excess Reserve Fund Account], the amount of any Basis Risk Payment for such
Distribution Date;
(vi) to
the
extent not paid pursuant to clause (a)(iii)(D) of this Section 4.02, to the
Class [ ] and Class [ ] Certificates, any remaining unpaid Basis Risk
Carryover Amount with respect to such Certificates for that Distribution Date,
allocated in the same order and priority as set forth in such
clause;
(vii) if
applicable, to the Termination Receipts Account for application to the purchase
of a replacement swap agreement pursuant to Section 4.08;
(viii) to
the
extent not paid pursuant to clause (a)(iii)(E) of this Section 4.02, to the
Swap
Counterparty, any Swap Termination Payment owed by the Swap Counterparty;
and
(ix) to
the
extent not paid pursuant to clause (a)(iii)(F) of this Section 4.02, to the
holders of the Class [X] Certificates, the remainder of the Class [X]
Distributable Amount.]
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With
respect to each Distribution Date, the sum of all amounts distributed in
priorities (e)(iii) and (e)(iv) second
cannot
exceed the amount of cumulative Realized Losses to such Distribution Date
minus
any distributions made on previous Distribution Dates pursuant to such
priorities.
[To
be
modified in accordance with the structure of the related
transaction.]
Section
4.03 Monthly
Statements to Certificateholders.
(a) Not
later than each Distribution Date, the Securities Administrator shall make
available to each Certificateholder, the Master Servicer, the Servicer, the
Depositor, the Trustee and each Rating Agency a statement, based on information
provided by the Servicer, setting forth with respect to the related
distribution:
(i) [the
amount thereof allocable to principal, separately identifying the aggregate
amount of any Principal Prepayments, Liquidation Proceeds and Subsequent
Recoveries;
(ii) the
amount thereof allocable to interest, any Interest Carry Forward Amounts
included in such distribution and any remaining Interest Carry Forward Amounts
after giving effect to such distribution, any Basis Risk Carryover Amount for
such Distribution Date and the amount of all Basis Risk Carryover Amount covered
by withdrawals from the [Excess Reserve Fund Account] on such Distribution
Date;
(iii) if
the
distribution to the Holders of such Class of Certificates is less than the
full amount that would be distributable to such Holders if there were sufficient
funds available therefor, the amount of the shortfall and the allocation thereof
as between principal and interest, including any Basis Risk Carryover Amount
not
covered by amounts in the [Excess Reserve Fund Account];
(iv) the
Class Certificate Balance of each Class of Certificates after giving
effect to the distribution of principal on such Distribution Date;
(v) the
Pool
Stated Principal Balance for the following Distribution Date;
(vi) the
amount of the Expense Fees (in the aggregate and separately stated) paid to
or
retained by the Servicer or Subservicer and the Master Servicer with respect
to
such Distribution Date;
(vii) the
Interest Rate for each such Class of Certificates with respect to such
Distribution Date;
(viii) the
amount of P&I Advances included in the distribution on such Distribution
Date and the aggregate amount of P&I Advances outstanding as of the close of
business on the Determination Date immediately preceding such Distribution
Date;
(ix) by
Loan
Group and in the aggregate, the number and aggregate outstanding principal
balances of Mortgage Loans (1) as to which the Scheduled Payment is
delinquent 31 to 60 days, 61 to 90 days and 91 or more days,
(2) that have become REO Property, (3) that are in foreclosure and
(4) that are in bankruptcy, in each case as of the close of business on the
last Business Day of the immediately preceding month;
-84-
(x) by
Loan
Group and in the aggregate, with respect to Mortgage Loans that became REO
Properties during the preceding calendar month, the number and the aggregate
Stated Principal Balance of such Mortgage Loans as of the close of business
on
the Determination Date preceding such Distribution Date and the date of
acquisition thereof;
(xi) by
Loan
Group and the aggregate, the total number and aggregate principal balance of
any
REO Properties as of the close of business on the Determination Date preceding
such Distribution Date;
(xii) whether
a
Trigger Event has occurred and is continuing;
(xiii) the
amount on deposit in the Excess Reserve Fund Account (after giving effect to
distributions on such Distribution Date);
(xiv) in
the
aggregate and for each Class of Certificates, the aggregate amount of
Applied Realized Loss Amounts incurred during the preceding calendar month
and
aggregate Applied realized Loss Amounts through such Distribution
Date.;
(xv) the
amount of any Net Monthly Excess Cash Flow on such Distribution Date and the
allocation thereof to the Certificateholders with respect to Applied Realized
Loss Amounts and Interest Carry Forward Amounts;
(xvi) the
Overcollateralization Amount and Overcollateralization Target
Amount;
(xvii) Prepayment
Charges collected by the Servicer;
(xviii) the
Cumulative Loss Percentage; and
(xix) the
amount of any Net Swap Payment made to the Supplemental Interest Trust pursuant
to Section 4.02, any Net Swap Payment made to the Swap Counterparty pursuant
to
Section 4.02, any Swap Termination Payment made to the Supplemental Interest
Trust pursuant to Section 4.02 and any Swap Termination Payment made to the
Swap
Counterparty pursuant to Section 4.02.]
(a) For
all
purposes of this Agreement, with respect to any Mortgage Loan, delinquencies
shall be determined and reported based on the so-called “OTS” methodology for
determining delinquencies on mortgage loans similar to the Mortgage Loans.
By
way of example, a Mortgage Loan would be delinquent with respect to a Scheduled
Payment due on a Due Date if such Scheduled Payment is not made by the close
of
business on the Mortgage Loan’s next succeeding Due Date, and a Mortgage Loan
would be more than 30-days Delinquent with respect to such Scheduled Payment
if
such Scheduled Payment were not made by the close of business on the Mortgage
Loan’s second succeeding Due Date. The Servicer hereby represents and warrants
to the Depositor that this delinquency recognition policy is not less
restrictive than any delinquency recognition policy established by the primary
safety and soundness regulator, if any, of the Servicer.
-85-
(b) The
Securities Administrator’s responsibility for providing the above statement to
the Certificateholders, each Rating Agency, the Master Servicer, the Servicer,
the Trustee and the Depositor is limited to the availability, timeliness
and
accuracy of the information derived from the Master Servicer and the Servicer.
The Securities Administrator will provide the above statement via the Securities
Administrator’s internet website. The Securities Administrator’s website will
initially be located at [ ] and assistance in using the website
can be obtained by calling the Securities Administrator’s customer service desk
at [ ]. Parties that are unable to use the above distribution
method are entitled to have a paper copy mailed to them via first Class mail
by
calling the customer service desk and indicating such. The Securities
Administrator shall have the right to change the manner in which the above
statement is distributed in order to make such distribution more convenient
and/or more accessible, and the Securities Administrator shall provide timely
and adequate notification to the Certificateholders and the parties hereto
regarding any such changes. A paper copy of the statement will also be made
available upon request.
(c) Within
a
reasonable period of time after the end of each calendar year, the Securities
Administrator shall, upon request, cause to be furnished to each Person who
at
any time during the calendar year was a Certificateholder, a statement
containing the information set forth in clauses (a)(i), (a)(ii) and (a)(vi)
of this Section 4.03 aggregated for such calendar year or applicable
portion thereof during which such Person was a Certificateholder. Such
obligation of the Securities Administrator shall be deemed to have been
satisfied to the extent that substantially comparable information shall have
previously been provided by the Securities Administrator pursuant to any
requirements of the Code as from time to time in effect.
(d) On
the
[ ] day of each calendar month (or, if such [ ] day is not
a Business Day, then on the next succeeding Business Day), the Servicer shall
furnish to the Master Servicer (i) a monthly defaulted loan report in the format
set forth in Exhibit N-2 hereto and a realized loss report in the format set
forth in Exhibit N-3 hereto (or in such other format mutually agreed to between
the Servicer and the Master Servicer) relating to the period ending on the
last
day of the preceding calendar month on a magnetic tape or other similar media
reasonably acceptable to the Master Servicer. No later than [ ]
Business Days after the fifteenth day of each calendar month, the Servicer
shall
furnish to the Master Servicer a monthly remittance advice in the format set
forth in Exhibit N-1 hereto and a monthly report containing such information
regarding prepayments of Mortgage Loans during the applicable Prepayment Period
and in a format as mutually agreed to between the Servicer and the Master
Servicer.
Such
monthly remittance advice shall also be accompanied by a supplemental report
provided to the Master Servicer which includes on an aggregate basis for the
previous calendar month (i) the amount of any insurance claims filed, (ii)
the
amount of any claim payments made and (iii) the amount of claims denied or
curtailed. The Master Servicer will convert such data into a format acceptable
to the Securities Administrator and provide monthly reports to the Securities
Administrator pursuant to this Agreement.
-86-
Section
4.04 Certain
Matters Relating to the Determination of LIBOR.
LIBOR
shall be calculated by the Securities Administrator in accordance with the
definition of LIBOR. Until all of the LIBOR Certificates are paid in full,
the
Securities Administrator will at all times retain at least four Reference
Banks
for the purpose of determining LIBOR with respect to each LIBOR Determination
Date. The Securities Administrator initially shall designate the Reference
Banks
(after consultation with the Depositor). Each “Reference
Bank”
shall
be a leading bank engaged in transactions in Eurodollar deposits in the
international Eurocurrency market, shall not control, be controlled by, or
be
under common control with, the Securities Administrator and shall have an
established place of business in London. If any such Reference Bank should
be
unwilling or unable to act as such or if the Securities Administrator should
terminate its appointment as Reference Bank, the Securities Administrator
shall
promptly appoint or cause to be appointed another Reference Bank (after
consultation with the Depositor). The Securities Administrator shall have
no
liability or responsibility to any Person for (i) the selection of any
Reference Bank for purposes of determining LIBOR or (ii) any inability to
retain at least four Reference Banks which is caused by circumstances beyond
its
reasonable control.
The
Interest Rate for each Class of LIBOR Certificates for each Interest
Accrual Period shall be determined by the Securities Administrator on each
LIBOR
Determination Date so long as the LIBOR Certificates are outstanding on the
basis of LIBOR and the respective formulae appearing in footnotes corresponding
to the LIBOR Certificates in the table relating to the Certificates in the
Preliminary Statement. The Securities Administrator shall not have any liability
or responsibility to any Person for its inability, following a good-faith
reasonable effort, to obtain quotations from the Reference Banks or to determine
the arithmetic mean referred to in the definition of LIBOR, all as provided
for
in this Section 4.04 and the definition of LIBOR. The establishment of
LIBOR and each Interest Rate for the LIBOR Certificates by the Securities
Administrator shall (in the absence of manifest error) be final, conclusive
and
binding upon each Holder of a Certificate and the Trustee.
Section
4.05 Allocation
of Applied Realized Loss Amounts.
Any
Applied Realized Loss Amounts shall be allocated by the Securities Administrator
to the most junior Class of Class [ ]
Certificates then outstanding in reduction of the Class Certificate Balance
thereof.
Section
4.06 Supplemental
Interest Trust. (a)
separate trust is hereby established (the “Supplemental
Interest Trust”),
the
corpus of which shall be held by the Securities Administrator on behalf of
the
Trustee as trustee of the Supplemental Interest Trust, for the benefit of the
Class [X] Certificateholders. The Securities Administrator, acting in its
capacity as Securities Administrator of the Supplemental Interest Trust, shall
establish an account (the “Supplemental
Interest Trust Account”),
into
which the Depositor shall initially deposit $[ ]. The
Supplemental Interest Trust Account shall be an Eligible Account, and funds
on
deposit therein shall be held separate and apart from, and shall not be
commingled with, any other monies, including, without limitation, other monies
of the Securities Administrator held pursuant to this Agreement.
(b) The
Securities Administrator shall deposit into the Supplemental Interest Trust
Account any Net Swap Payment required pursuant to Sections
4.02[ ], 4.02[ ] and 4.02[ ],
any Swap Termination Payment required pursuant to Sections 4.02[ ],
4.02[ ], 4.02[ ] and 4.02[ ], and
any amounts received from the Swap Counterparty under the Swap Agreement, and
shall distribute from the Supplemental Interest Trust Account any Net Swap
Payment required pursuant to Section 4.02[ ] or Swap
Termination Payment required pursuant to Sections 4.02[ ] or
4.02[ ], as applicable.
-87-
(c) Funds
in
the Supplemental Interest Trust Account shall be invested in Permitted
Investments constituting time deposits under clause (ii) of the definition
thereof. Any earnings on such amounts shall be distributed on each Distribution
Date pursuant to Section 4.02(e). The Class [X] Certificates shall evidence
ownership of the Supplemental Interest Trust Account for federal income tax
purposes and the Holder thereof shall direct the Securities Administrator,
in
writing, as to investment of amounts on deposit therein. The Sponsor shall
be
liable for any losses incurred on such investments. In the absence of written
instructions from the Class [X] Certificateholders as to investment of funds
on
deposit in the Supplemental Interest Trust Account, such funds shall be invested
in the [ ] or a comparable investment vehicle. Any amounts on
deposit in the Supplemental Interest Trust Account in excess of the Supplemental
Interest Trust Amount on any Distribution Date shall be held for distribution
pursuant to Section 4.02(e) on the following Distribution Date.
(d) Upon
termination of the Trust Fund, any amounts remaining in the Supplemental
Interest Trust Account shall be distributed pursuant to the priorities set
forth
in Section 4.02(e).
(e) It
is the
intention of the parties hereto that, for federal and state income and state
and
local franchise tax purposes, the Supplemental Interest Trust be disregarded
as
an entity separate from the holder of the Class [X] Certificates unless and
until the date when either (a) there is more than one Class [X]
Certificateholder or (b) any Class of Certificates in addition to the Class
[X]
Certificates is recharacterized as an equity interest in the Supplemental
Interest Trust for federal income tax purposes. Neither the Securities
Administrator nor the Trustee shall be responsible for any entity level tax
reporting for the Supplemental Interest Trust.
(f) To
the
extent that the Supplemental Interest Trust is determined to be a separate
legal
entity from the Trust, any obligation of the Securities Administrator under
the
Swap Agreement shall be deemed to be an obligation of the Supplemental Interest
Trust.
Section
4.07 Rights
of the Swap Counterparty.
The Swap
Counterparty shall be deemed a third-party beneficiary of this Agreement to
the
same extent as if it were a party hereto and shall have the right, upon
designation of an “Early Termination Date” (as defined in the Swap Agreement),
to enforce its rights under this Agreement, which rights include but are not
limited to the obligation of the Securities Administrator (A) to deposit any
Net
Swap Payment required pursuant to Sections 4.02[ ],
4.02[ ] and 4.02[ ], and any Swap Termination
Payment required pursuant to Sections 4.02[ ],
4.02[ ], 4.02[ ] and 4.02[ ],
into the Supplemental Interest Trust Account (B) to pay any Net Swap Payment
required pursuant to Section 4.02[ ] or Swap Termination
Payment required pursuant to Sections 4.02[ ] or Section
4.02[ ], as applicable, to the Swap Counterparty and (C) to
establish and maintain the Supplemental Interest Trust Account, to make such
deposits thereto, investments therein and distributions therefrom as are
required pursuant to Section 4.06. For the protection and enforcement of the
provisions of this Section the Swap Counterparty shall be entitled to such
relief as can be given either at law or in equity.
-88-
Section
4.08 Termination
Receipts.
In the
event of an “Early Termination Event” as defined under the Swap Agreement, (i)
any Swap Termination Payment made by the Swap Counterparty to the Supplemental
Interest Trust and paid pursuant to Section 4.02(e)[ ]
(“Termination
Receipts”)
will
be deposited in a segregated non-interest bearing account which shall be an
Eligible Account established by the Securities Administrator (the “Termination
Receipts Account”)
and
(ii) any amounts received from a replacement swap counterparty (“Replacement
Receipts”)
will
be deposited in a segregated non-interest bearing account which shall be an
Eligible Account established by the Securities Administrator (the “Replacement
Receipts Account”).
The
Securities Administrator shall invest, or cause to be invested, funds held
in
the Termination Receipts Account and the Replacement Receipts Account in time
deposits of the Securities Administrator as permitted pursuant to clause (ii)
of
the definition of Permitted Investments or as otherwise directed in writing
by a
majority of the Certificateholders. All such investments must be payable on
demand or mature on a Distribution Date or such other date as directed by the
Certificateholders. All such Eligible Investments will be made in the name
of
the Trustee of the Supplemental Interest Trust (in its capacity as such) or
its
nominee. All income and gain realized from any such investment shall be
deposited in the Termination Receipts Account or the Replacement Receipts
Account, as applicable, and all losses, if any, shall be borne by the related
account.
Unless
otherwise permitted by the Rating Agencies as evidenced in a written
confirmation, the Depositor shall arrange for replacement swap agreement(s)
and
the Securities Administrator shall promptly, with the assistance and cooperation
of the Depositor, use amounts on deposit in the Termination Receipts Account,
if
necessary, to enter into replacement swap agreement(s) which shall be executed
and delivered by the Securities Administrator on behalf of the Supplemental
Interest Trust upon receipt of written confirmation from each Rating Agency
that
such replacement Swap Agreement(s) will not result in the reduction or
withdrawal of the rating of any outstanding Class of Certificates with respect
to which it is a Rating Agency.
Amounts
on deposit in the Replacement Receipts Account shall be held for the benefit
of
the related Swap Counterparty and paid to such Swap Counterparty if the
Supplemental Interest Trust is required to make a payment to such Swap
Counterparty following an event of default or termination event with respect
to
the Supplemental Interest Trust under the related Swap Agreement. Any amounts
not so applied shall, following the termination or expiration of such Swap
Agreement, be paid to the Class [X] Certificates.
ARTICLE
V
THE
CERTIFICATES
Section
5.01 The
Certificates.
The
Certificates shall be substantially in the forms attached hereto as exhibits.
The Certificates shall be issuable in registered form, in the minimum
denominations, integral multiples in excess thereof (except that one Certificate
in each Class may be issued in a different amount) and aggregate
denominations per Class set forth in the Preliminary
Statement.
-89-
The
Depositor hereby directs the Securities Administrator to register the
Class [X] and Class [P] Certificates in the name of the Depositor or
its designee. On a date as to which the Depositor notifies the Securities
Administrator, the Securities Administrator shall transfer the Class [X]
and Class [P] Certificates in the name of the NIM Trustee, or such other
name or names as the Depositor shall request, and to deliver the Class [X]
and Class [P] Certificates to the NIM Trustee or to such other Person or
Persons as the Depositor shall request.
Subject
to Section 11.02 respecting the final distribution on the Certificates, on
each Distribution Date the Securities Administrator shall make distributions
to
each Certificateholder of record on the preceding Record Date either (x) by
wire transfer in immediately available funds to the account of such holder
at a
bank or other entity having appropriate facilities therefor, if such Holder
has
so notified the Securities Administrator at least [ ] Business
Days prior to the related Record Date or (y) by check mailed by first Class
mail to such Certificateholder at the address of such holder appearing in the
Certificate Register; provided,
however,
so long
as such Certificate is a Book-Entry Certificate, all distributions on such
Certificate will be made through the Depository or the Depository
Participant.
The
Certificates shall be executed by manual or facsimile signature on behalf of
the
Securities Administrator by an authorized officer. Certificates bearing the
manual or facsimile signatures of individuals who were, at the time such
signatures were affixed, authorized to sign on behalf of the Securities
Administrator shall bind the Securities Administrator, notwithstanding that
such
individuals or any of them have ceased to be so authorized prior to the
authentication and delivery of any such Certificates or did not hold such
offices at the date of such Certificate. No Certificate shall be entitled to
any
benefit under this Agreement, or be valid for any purpose, unless authenticated
by the Securities Administrator by manual signature, and such authentication
upon any Certificate shall be conclusive evidence, and the only evidence, that
such Certificate has been duly executed and delivered hereunder. All
Certificates shall be dated the date of their authentication. On the Closing
Date, the Securities Administrator shall authenticate the Certificates to be
issued at the direction of the Depositor, or any affiliate thereof.
Section
5.02 Certificate
Register; Registration of Transfer and Exchange of Certificates.
(a) The Securities Administrator shall maintain, or cause to be
maintained in accordance with the provisions of Section 5.06, a Certificate
Register for the Trust Fund in which, subject to the provisions of subsections
(b) and (c) below and to such reasonable regulations as it may prescribe,
the Securities Administrator shall provide for the registration of Certificates
and of transfers and exchanges of Certificates as herein provided. Upon
surrender for registration of transfer of any Certificate, the Securities
Administrator shall execute and deliver, in the name of the designated
transferee or transferees, one or more new Certificates of the same
Class and aggregate Percentage Interest.
At
the
option of a Certificateholder, Certificates may be exchanged for other
Certificates of the same Class in authorized denominations and evidencing
the same aggregate Percentage Interest upon surrender of the Certificates to
be
exchanged at the office or agency of the Securities Administrator. Whenever
any
Certificates are so surrendered for exchange, the Securities Administrator
shall
execute, authenticate, and deliver the Certificates which the Certificateholder
making the exchange is entitled to receive. Every Certificate presented or
surrendered for registration of transfer or exchange shall be accompanied by
a
written instrument of transfer in form satisfactory to the Securities
Administrator duly executed by the holder thereof or his attorney duly
authorized in writing.
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No
service charge to the Certificateholders shall be made for any registration
of
transfer or exchange of Certificates, but payment of a sum sufficient to cover
any tax or governmental charge that may be imposed in connection with any
transfer or exchange of Certificates may be required.
All
Certificates surrendered for registration of transfer or exchange shall be
cancelled and subsequently destroyed by the Securities Administrator in
accordance with the Securities Administrator’s customary
procedures.
(b) No
transfer of a Private Certificate shall be made unless such transfer is made
pursuant to an effective registration statement under the Securities Act and
any
applicable state securities laws or is exempt from the registration requirements
under said Act and such state securities laws. In determining whether a transfer
is being made pursuant to an effective registration statement, the Securities
Administrator shall be entitled to rely solely upon a written notice to such
effect from the Depositor. Except with respect to (i) the transfer of the
Class [X], Class [P] or Class [R] Certificates to the Depositor
or an Affiliate of the Depositor, (ii) the transfer of the Class [X]
or Class [P] Certificates to the NIM Issuer or the NIM Trustee, or
(iii) a transfer of the Class [X] or Class [P] Certificates from
the NIM Issuer or the NIM Trustee to the Depositor or an Affiliate of the
Depositor, in the event that a transfer of a Private Certificate which is a
Physical Certificate is to be made in reliance upon an exemption from the
Securities Act and such laws, in order to assure compliance with the Securities
Act and such laws, the Certificateholder desiring to effect such transfer shall
certify to the Securities Administrator in writing the facts surrounding the
transfer in substantially the form set forth in Exhibit H (the
“Transferor
Certificate”)
and
either (i) there shall be delivered to the Securities Administrator a
letter in substantially the form of Exhibit I (the “Rule 144A
Letter”)
or
(ii) there shall be delivered to the Securities Administrator at the
expense of the transferor an Opinion of Counsel stating that such transfer
may
be made without registration under the Securities Act. In the event that a
transfer of a Private Certificate which is a Book-Entry Certificate is to be
made in reliance upon an exemption from the Securities Act and such laws, in
order to assure compliance with the Securities Act and such laws, the
Certificateholder desiring to effect such transfer will be deemed to have made
as of the transfer date each of the certifications set forth in the Transferor
Certificate in respect of such Certificate and the transferee will be deemed
to
have made as of the transfer date each of the certifications set forth in the
Rule 144A Letter in respect of such Certificate, in each case as if such
Certificate were evidenced by a Physical Certificate. As directed by the
Depositor, the Securities Administrator shall provide to any Holder of a Private
Certificate and any prospective transferee designated by any such Holder,
information regarding the related Certificates and the Mortgage Loans and such
other information as shall be necessary to satisfy the condition to eligibility
set forth in Rule 144A(d)(4) for transfer of any such Certificate without
registration thereof under the Securities Act pursuant to the registration
exemption provided by Rule 144A. The Depositor, the Master Servicer, the
Servicer and the Trustee shall cooperate with the Securities Administrator
in
providing the Rule 144A information referenced in the preceding sentence,
including providing to the Securities Administrator such information regarding
the Certificates, the Mortgage Loans and other matters regarding the Trust
Fund
as the Securities Administrator shall reasonably determine to meet its
obligation under the preceding sentence. Each Holder of a Private Certificate
desiring to effect such transfer shall, and does hereby agree to, indemnify
the
Securities Administrator, the Trustee, the Servicer, the Master Servicer and
the
Depositor against any liability that may result if the transfer is not so exempt
or is not made in accordance with such federal and state laws.
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Except
with respect to (i) the transfer of the Class [X], Class [P] or
Class [R] Certificates to the Depositor or an Affiliate of the Depositor,
(ii) the transfer of the Class [X] or Class [P] Certificates to
the NIM Issuer or the NIM Trustee, or (iii) a transfer of the
Class [X] or Class [P] Certificates from the NIM Issuer or the NIM
Trustee to the Depositor or an Affiliate of the Depositor, no transfer of an
ERISA-Restricted Certificate shall be made unless the Securities Administrator
shall have received either (i) a representation from the transferee of such
Certificate acceptable to and in form and substance satisfactory to the
Securities Administrator (in the event such Certificate is a Private Certificate
or a Residual Certificate, such requirement is satisfied only by the Securities
Administrator’s receipt of a representation letter from the transferee
substantially in the form of Exhibit I), to the effect that such transferee
is not an employee benefit plan or arrangement subject to Section 406 of
ERISA, a plan subject to Section 4975 of the Code or a plan subject to any
Federal, state or local law (“Similar
Law”)
materially similar to the foregoing provisions of ERISA or the Code, nor a
person acting on behalf of any such plan or arrangement nor using the assets
of
any such plan or arrangement to effect such transfer, or (ii) in the case
of an ERISA-Restricted Certificate other than a Residual Certificate or a
Class [P] Certificate that has been the subject of an ERISA-Qualifying
Underwriting, and the purchaser is an insurance company, a representation that
the purchaser is an insurance company that is purchasing such Certificates
with
funds contained in an “insurance company general account” (as such term is
defined in Section V(e) of Prohibited Transaction Class Exemption
(“PTCE”)
95-60)
and that the purchase and holding of such Certificates are covered under
Sections I and III of PTCE 95-60 or (iii) in the case of any such
ERISA-Restricted Certificate other than a Residual Certificate or Class [P]
Certificate presented for registration in the name of an employee benefit plan
subject to Title I of ERISA, a plan or arrangement subject to
Section 4975 of the Code (or comparable provisions of any subsequent
enactments), or a plan subject to Similar Law, or a trustee of any such plan
or
any other person acting on behalf of any such plan or arrangement or using
such
plan’s or arrangement’s assets, an Opinion of Counsel satisfactory to the
Securities Administrator, which Opinion of Counsel shall not be an expense
of
the Depositor, the Trustee, the Master Servicer, the Servicer, the Securities
Administrator or the Trust Fund, addressed to the Securities Administrator,
to
the effect that the purchase or holding of such ERISA-Restricted Certificate
will not constitute or result in a non-exempt prohibited transaction within
the
meaning of ERISA, Section 4975 of the Code or any Similar Law and will not
subject the Trustee, the Depositor, the Securities Administrator, the Master
Servicer or the Servicer to any obligation in addition to those expressly
undertaken in this Agreement or to any liability. For purposes of the preceding
sentence, with respect to an ERISA-Restricted Certificate that is not a Physical
Certificate or a Residual Certificate, in the event the representation letter
referred to in the preceding sentence is not furnished, such representation
shall be deemed to have been made to the Securities Administrator by the
transferee’s (including an initial acquirer’s) acceptance of the
ERISA-Restricted Certificates. Notwithstanding anything else to the contrary
herein, (a) any purported transfer of an ERISA-Restricted Certificate that
is a Physical Certificate, other than a Class [P] Certificate or Residual
Certificate, to or on behalf of an employee benefit plan subject to ERISA,
the
Code or Similar Law without the delivery to the Securities Administrator of
a
representation letter or an Opinion of Counsel satisfactory to the Securities
Administrator as described above shall be void and of no effect and (b) any
purported transfer of a Class [P] Certificate or Residual Certificate to a
transferee that does not make the representation in clause (i) above
shall be void and of no effect.
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None
of
the Class [R] or Class [P] Certificates may be sold to any employee
benefit plan subject to Title I of ERISA, any plan subject to
Section 4975 of the Code, or any plan subject to any Similar Law or any
person investing on behalf or with plan assets of such plan.
No
transfer of an ERISA-Restricted Swap Certificate prior to the termination of
the
Swap Agreement shall be made unless the Securities Administrator shall have
received a representation letter from the transferee of such Certificate,
substantially in the form set forth in Exhibit I, to the effect that either
(i)
such transferee is neither an employee benefit plan or arrangement subject
to
Section 406 of ERISA, a plan subject to Section 4975 of the Code or a plan
subject to Similar Law nor a Person acting on behalf of any such Plan or using
the assets of any such Plan to effect such transfer or (ii) the acquisition
and
holding of the ERISA-Restricted Swap Certificate are eligible for exemptive
relief under XXXX 00-00, XXXX 00-0, XXXX 91-38, PTCE 95-60 or PTCE 96-23.
Notwithstanding anything else to the contrary herein, any purported transfer
of
an ERISA-Restricted Swap Certificate prior to the termination of the Swap
Agreement on behalf of such Plan without the delivery to the Securities
Administrator of a representation letter as described above shall be void and
of
no effect. If the ERISA-Restricted Swap Certificate is a Book-Entry Certificate,
the transferee will be deemed to have made a representation as provided in
clause (i) or (ii) of this paragraph, as applicable.
If
any
ERISA-Restricted Swap Certificate, or any interest therein, is acquired or
held
in violation of the provisions of the preceding paragraph, the next preceding
permitted beneficial owner will be treated as the beneficial owner of that
Certificate, retroactive to the date of transfer to the purported beneficial
owner. Any purported beneficial owner whose acquisition or holding of an
ERISA-Restricted Swap Certificate, or interest therein, was effected in
violation of the provisions of the preceding paragraph shall indemnify to the
extent permitted by law and hold harmless the Depositor, the Securities
Administrator, the Trustee, the Servicer and the Master Servicer from and
against any and all liabilities, claims, costs or expenses incurred by such
parties as a result of such acquisition or holding.
To
the
extent permitted under applicable law (including, but not limited to, ERISA),
the Securities Administrator shall be under no liability to any Person for
any
registration of transfer of any ERISA-Restricted Certificate or ERISA-Restricted
Swap Certificate that is in fact not permitted by this Section 5.02(b) or
for making any payments due on such Certificate to the Holder thereof or taking
any other action with respect to such Holder under the provisions of this
Agreement so long as, in the case of a Physical Certificate, the transfer was
registered by the Securities Administrator in accordance with the foregoing
requirements.
(c) Each
Person who has or who acquires any Ownership Interest in a Residual Certificate
shall be deemed by the acceptance or acquisition of such Ownership Interest
to
have agreed to be bound by the following provisions, and the rights of each
Person acquiring any Ownership Interest in a Residual Certificate are expressly
subject to the following provisions:
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(i) Each
Person holding or acquiring any Ownership Interest in a Residual Certificate
shall be a Permitted Transferee and shall promptly notify the Securities
Administrator of any change or impending change in its status as a Permitted
Transferee;
(ii) No
Ownership Interest in a Residual Certificate may be registered on the Closing
Date or thereafter transferred, and the Securities Administrator shall not
register the Transfer of any Residual Certificate unless, in addition to the
certificates required to be delivered to the Securities Administrator under
subparagraph (b) above, the Securities Administrator shall have been
furnished with an affidavit (a “Transfer
Affidavit”)
of the
initial owner or the proposed transferee in the form attached hereto as
Exhibit G;
(iii) Each
Person holding or acquiring any Ownership Interest in a Residual Certificate
shall agree (A) to obtain a Transfer Affidavit from any other Person to
whom such Person attempts to Transfer its Ownership Interest in a Residual
Certificate, (B) to obtain a Transfer Affidavit from any Person for whom
such Person is acting as nominee, trustee or agent in connection with any
Transfer of a Residual Certificate and (C) not to Transfer its Ownership
Interest in a Residual Certificate or to cause the Transfer of an Ownership
Interest in a Residual Certificate to any other Person if it has actual
knowledge that such Person is a Non-Permitted Transferee;
(iv) Any
attempted or purported Transfer of any Ownership Interest in a Residual
Certificate in violation of the provisions of this Section 5.02(c) shall be
absolutely null and void and shall vest no rights in the purported Transferee.
If any purported transferee shall become a Holder of a Residual Certificate
in
violation of the provisions of this Section 5.02(c), then the last
preceding Permitted Transferee shall be restored to all rights as Holder thereof
retroactive to the date of registration of Transfer of such Residual
Certificate. The Securities Administrator shall be under no liability to any
Person for any registration of Transfer of a Residual Certificate that is in
fact not permitted by Section 5.02(a) and this Section 5.02(c) or for
making any payments due on such Certificate to the Holder thereof or taking
any
other action with respect to such Holder under the provisions of this Agreement
so long as the Transfer was registered after receipt of the related Transfer
Affidavit, Transferor Certificate and the Rule 144A Letter. The Securities
Administrator shall be entitled but not obligated to recover from any Holder
of
a Residual Certificate that was in fact a Non-Permitted Transferee at the time
it became a Holder or, at such subsequent time as it became a Non-Permitted
Transferee, all payments made on such Residual Certificate at and after either
such time. Any such payments so recovered by the Securities Administrator shall
be paid and delivered by the Securities Administrator to the last preceding
Permitted Transferee of such Certificate; and
(v) The
Depositor shall use its best efforts to make available, upon receipt of written
request from the Securities Administrator, all information necessary to compute
any tax imposed under Section 860E(e) of the Code as a result of a Transfer
of an Ownership Interest in a Residual Certificate to any Holder who is a
Non-Permitted Transferee.
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The
restrictions on Transfers of a Residual Certificate set forth in this
Section 5.02(c) shall cease to apply (and the applicable portions of the
legend on a Residual Certificate may be deleted) with respect to Transfers
occurring after delivery to the Securities Administrator of an Opinion of
Counsel, which Opinion of Counsel shall not be an expense of the Trust Fund,
the
Trustee, the Securities Administrator or the Servicer, to the effect that the
elimination of such restrictions will not cause any REMIC created hereunder
to
fail to qualify as a REMIC at any time that the Certificates are outstanding
or
result in the imposition of any tax on the Trust Fund, a Certificateholder
or
another Person. Each Person holding or acquiring any Ownership Interest in
a
Residual Certificate hereby consents to any amendment of this Agreement which,
based on an Opinion of Counsel furnished to the Securities Administrator, is
reasonably necessary (a) to ensure that the record ownership of, or any
beneficial interest in, a Residual Certificate is not transferred, directly
or
indirectly, to a Person that is a Non-Permitted Transferee and (b) to
provide for a means to compel the Transfer of a Residual Certificate which
is
held by a Person that is a Non-Permitted Transferee to a Holder that is a
Permitted Transferee.
(d) The
preparation and delivery of all certificates and opinions referred to above
in
this Section 5.02 in connection with transfer shall be at the expense of
the parties to such transfers.
(e) Except
as
provided below, the Book-Entry Certificates shall at all times remain registered
in the name of the Depository or its nominee and at all times:
(i) registration of the Certificates may not be transferred by the
Securities Administrator except to another Depository; (ii) the Depository
shall maintain book-entry records with respect to the Certificate Owners and
with respect to ownership and transfers of such Book-Entry Certificates;
(iii) ownership and transfers of registration of the Book-Entry
Certificates on the books of the Depository shall be governed by applicable
rules established by the Depository; (iv) the Depository may collect its
usual and customary fees, charges and expenses from its Depository Participants;
(v) the Securities Administrator shall deal with the Depository, Depository
Participants and indirect participating firms as representatives of the
Certificate Owners of the Book-Entry Certificates for purposes of exercising
the
rights of holders under this Agreement, and requests and directions for and
votes of such representatives shall not be deemed to be inconsistent if they
are
made with respect to different Certificate Owners; and (vi) the Securities
Administrator may rely and shall be fully protected in relying upon information
furnished by the Depository with respect to its Depository Participants and
furnished by the Depository Participants with respect to indirect participating
firms and persons shown on the books of such indirect participating firms as
direct or indirect Certificate Owners.
All
transfers by Certificate Owners of Book-Entry Certificates shall be made in
accordance with the procedures established by the Depository Participant or
brokerage firm representing such Certificate Owner. Each Depository Participant
shall only transfer Book-Entry Certificates of Certificate Owners it represents
or of brokerage firms for which it acts as agent in accordance with the
Depository’s normal procedures.
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If
(x) (i) the Depository or the Depositor advises the Securities
Administrator in writing that the Depository is no longer willing or able to
properly discharge its responsibilities as Depository, and (ii) the
Securities Administrator or the Depositor is unable to locate a qualified
successor, or (y) the Depositor notifies the Depository (and the Securities
Administrator consents) of its intent to terminate the book-entry system through
the Depository and, upon receipt of notice of such intent from the Depository,
the Depository Participants holding beneficial interests in the Book-Entry
Certificates agree to initiate such termination, the Securities Administrator
shall notify all Certificate Owners, through the Depository, of the occurrence
of any such event and of the availability of definitive, fully registered
Certificates (the “Definitive
Certificates”)
to
Certificate Owners requesting the same. Upon surrender to the Securities
Administrator of the related Class of Certificates by the Depository,
accompanied by the instructions from the Depository for registration, the
Securities Administrator shall issue the Definitive Certificates. None of the
Servicer, the Depositor or the Securities Administrator shall be liable for
any
delay in delivery of such instruction and each may conclusively rely on, and
shall be protected in relying on, such instructions. The Depositor shall provide
the Securities Administrator with an adequate inventory of Certificates to
facilitate the issuance and transfer of Definitive Certificates. Upon the
issuance of Definitive Certificates all references herein to obligations imposed
upon or to be performed by the Depository shall be deemed to be imposed upon
and
performed by the Securities Administrator, to the extent applicable with respect
to such Definitive Certificates and the Securities Administrator shall recognize
the Holders of the Definitive Certificates as Certificateholders hereunder;
provided,
that
the Securities Administrator shall not by virtue of its assumption of such
obligations become liable to any party for any act or failure to act of the
Depository.
(f) Each
Private Certificate presented or surrendered for registration of transfer or
exchange shall be accompanied by a written instrument of transfer and
accompanied by IRS Form W-8ECI, W-8BEN, W-8IMY (and all appropriate attachments)
or W-9 in form satisfactory to the Securities Administrator, duly executed
by
the Certificateholder or his attorney duly authorized in writing. Each
Certificate presented or surrendered for registration of transfer or exchange
shall be canceled and subsequently disposed of by the Securities Administrator
in accordance with its customary practice. No service charge shall be made
for
any registration of transfer or exchange of Private Certificates, but the
Securities Administrator may require payment of a sum sufficient to cover any
tax or governmental charge that may be imposed in connection with any transfer
or exchange of Private Certificates.
Section
5.03 Mutilated,
Destroyed, Lost or Stolen Certificates.
If
(a) any mutilated Certificate is surrendered to the Securities
Administrator, or the Securities Administrator receives evidence to its
satisfaction of the destruction, loss or theft of any Certificate and
(b) there is delivered to the Depositor, the Securities Administrator and
the Trustee such security or indemnity as may be required by them to hold each
of them harmless, then, in the absence of notice to the Securities Administrator
that such Certificate has been acquired by a bona fide purchaser, the Securities
Administrator shall execute, authenticate and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like Class, tenor and Percentage Interest. In connection with
the
issuance of any new Certificate under this Section 5.03, the Securities
Administrator may require the payment of a sum sufficient to cover any tax
or
other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Securities Administrator)
connected therewith. Any replacement Certificate issued pursuant to this
Section 5.03 shall constitute complete and indefeasible evidence of
ownership, as if originally issued, whether or not the lost, stolen or destroyed
Certificate shall be found at any time.
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Section
5.04 Persons
Deemed Owners.
The
Trustee, the Depositor, the Securities Administrator and any agent of the
Trustee, the Depositor or the Securities Administrator may treat the Person
in
whose name any Certificate is registered as the owner of such Certificate for
the purpose of receiving distributions as provided in this Agreement and for
all
other purposes whatsoever, and neither the Trustee, the Depositor, the
Securities Administrator nor any agent of the Trustee, the Depositor or the
Securities Administrator shall be affected by any notice to the
contrary.
Section
5.05 Access
to List of Certificateholders’ Names and Addresses.
If
three or more Certificateholders (a) request such information in writing
from the Securities Administrator, (b) state that such Certificateholders
desire to communicate with other Certificateholders with respect to their rights
under this Agreement or under the Certificates and (c) provide a copy of
the communication which such Certificateholders propose to transmit, or if
the
Depositor or the Servicer shall request such information in writing from the
Securities Administrator, then the Securities Administrator shall, within
[ ] Business Days after the receipt of such request, provide
the Depositor, the Servicer or such Certificateholders at such recipients’
expense the most recent list of the Certificateholders of such Trust Fund held
by the Securities Administrator, if any. The Depositor and every
Certificateholder, by receiving and holding a Certificate, agree that the
Securities Administrator shall not be held accountable by reason of the
disclosure of any such information as to the list of the Certificateholders
hereunder, regardless of the source from which such information was
derived.
Section
5.06 Maintenance
of Office or Agency.
The
Securities Administrator will maintain or cause to be maintained at its expense
an office or offices or agency or agencies where Certificates may be surrendered
for registration of transfer or exchange. The Securities Administrator initially
designates its offices located at [ ]. The Securities
Administrator shall give prompt written notice to the Certificateholders of
any
change in such location of any such office or agency.
ARTICLE
VI
THE
DEPOSITOR AND THE SERVICER
Section
6.01 Respective
Liabilities of the Depositor and the Servicer.
The
Depositor and the Servicer shall each be liable in accordance herewith only
to
the extent of the obligations specifically and respectively imposed upon and
undertaken by them herein.
Section
6.02 Merger
or Consolidation of the Depositor or the Servicer.
(a) The Depositor and the Servicer will each keep in full effect its
existence, rights and franchises as a corporation, under the laws of the United
States or under the laws of one of the states thereof and will each 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 respective duties under this Agreement.
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(b) The
Servicer shall maintain a net worth of at least $[ ] (as
determined in accordance with generally accepted accounting principles) and,
to
the extent that any licensing or permits are applicable to its operations,
shall
maintain such license or permits that are required for it to do business or
service residential mortgage loans in any jurisdictions in which the Mortgaged
Properties are located.
(c) Any
Person into which the Depositor or the Servicer may be merged or consolidated,
or any Person resulting from any merger or consolidation to which the Depositor
or the Servicer shall be a party, or any person succeeding to the business
of
the Depositor or the Servicer, shall be the successor of the Depositor or the
Servicer, as the case may be, 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 successor or surviving Person to the Servicer shall make the covenant set
forth in Section 6.02(a).
Section
6.03 Limitation
on Liability of the Depositor, the Servicer and Others.
Neither
the Depositor, the Servicer, nor any of their respective directors, officers,
employees or agents, shall be under any liability to the Certificateholders
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 Depositor, the Servicer or any such Person
against any breach of representations or warranties made by it herein or protect
the Depositor, the Servicer or any such Person from any liability which would
otherwise be imposed by reasons of willful misfeasance, bad faith or negligence
(or gross negligence in the case of the Depositor) in the performance of duties
or by reason of reckless disregard of obligations and duties hereunder. The
Depositor, its Affiliates, the Servicer and any of their respective directors,
officers, employees or agents 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 Depositor, its Affiliates, the Servicer and any of their
respective directors, officers, employees or agents shall be indemnified by
the
Trust Fund and held harmless against any loss, liability or expense incurred
in
connection with any audit, controversy or judicial proceeding relating to a
governmental taxing authority or any legal action relating to this Agreement
or
the Certificates other than any loss, liability or expense related to any
specific Mortgage Loan or Mortgage Loans (except as any such loss, liability
or
expense shall be otherwise reimbursable pursuant to this Agreement and any
loss,
liability or expense incurred by reason of willful misfeasance, bad faith or
negligence (or gross negligence in the case of the Depositor) in the performance
of duties hereunder or by reason of reckless disregard of obligations and duties
hereunder. Neither the Depositor nor the Servicer shall be under any obligation
to appear in, prosecute or defend any legal action that is not incidental to
its
respective duties hereunder and which in its opinion may involve it in any
expense or liability; provided,
however,
that
the Depositor may in its discretion undertake any such action (or direct the
Trustee to undertake such actions pursuant to Section 2.03 for the benefit
of the Certificateholders) that it may deem necessary or desirable in respect
of
this Agreement and the rights and duties of the parties hereto and interests
of
the Trustee and the Certificateholders hereunder. In such event, the legal
expenses and costs of such action and any liability resulting therefrom shall
be
expenses, costs and liabilities of the Trust Fund, and the Depositor and the
Servicer shall be entitled to be reimbursed therefor out of the Collection
Account.
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Section
6.04 Limitation
on Resignation of the Servicer.
Subject
to Section 7.01, no Servicer shall not assign this Agreement or resign from
the obligations and duties hereby imposed on it except by mutual consent of
the
Servicer, the Depositor, the Master Servicer and the Securities Administrator
with prior written notice to the Trustee or upon the determination that its
duties hereunder are no longer permissible under applicable law and such
incapacity cannot be cured by the Servicer. Any such resignation shall not
relieve the Servicer of responsibility for any of the obligations specified
in
Sections 7.01 and 7.02 as obligations that survive the resignation or
termination of the Servicer. Any such determination permitting the resignation
of the Servicer shall be evidenced by an Opinion of Counsel to such effect
delivered to the Depositor, the Securities Administrator and the Master Servicer
which Opinion of Counsel shall be in form and substance acceptable to the
Depositor, the Securities Administrator and the Master Servicer. No such
resignation shall become effective until a successor shall have assumed the
Servicer’s responsibilities and obligations hereunder.
Section
6.05 Additional
Indemnification by the Servicer; Third Party Claims.
Notwithstanding the limitations set forth in Section 6.03, the Servicer shall
indemnify the Depositor, the Master Servicer, the Securities Administrator,
the
Trustee, the Trust Fund and any Affiliate, director, officer, employee or agent
of the Depositor and hold each of them harmless against any and all claims,
losses, damages, penalties, fines, forfeitures, reasonable and necessary legal
fees and related costs, judgments, and any other costs, fees and expenses that
any of them may sustain in any way related to any breach by the Servicer, of
(i) any of its representations and warranties referred to in
Section 2.03(a), (ii) any error in any tax or information return
prepared by the Servicer, (iii) the failure of the Servicer to perform its
duties and service the Mortgage Loans in compliance with the terms of this
Agreement or (iv) any
failure by the Servicer, any Subservicer or any Subcontractor to
deliver any information, report, certification, accountants’ letter or other
material when and as required under this Agreement, including any report under
Sections 3.22, 3.23, 3.24 and 3.29 or any failure by the Servicer to identify
pursuant to Section 3.02(c) any Subcontractor that is a Servicing Function
Participant. The Servicer immediately shall notify the Depositor, the Master
Servicer, the Securities Administrator and the Trustee 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 Depositor and the Securities Administrator)
the
defense of any such claim and pay all expenses in connection therewith,
including counsel fees, and promptly pay, discharge and satisfy any judgment
or
decree which may be entered against it or the Depositor, the Securities
Administrator or the Trustee in respect of such claim. In
the
case of any failure of performance described in clause (iv) of this Section
6.05, the Servicer shall promptly reimburse the Trustee, the Master Servicer,
the Securities Administrator or the 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 the transaction relating to this
Agreement, or for execution of a certification pursuant to Rule 13a-14(d) or
Rule 15d-14(d) under the Exchange Act with respect to this 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 Servicer, any
Subservicer or any Subcontractor.
This
indemnity shall survive the termination of this Agreement and the earlier
resignation or removal of the Servicer and the parties indemnified by the
Servicer under this paragraph.
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Section
6.06 Compliance
with Regulation AB; Cooperation of Parties.
Notwithstanding any other provision of this Agreement, the Servicer acknowledges
and agrees that the purpose of Sections 3.02, 3.22, 3.23, 3.24, 3.29, 6.05
and
7.01(i) and Exhibit S of this Agreement is to facilitate compliance by the
Trustee, the Securities Administrator, the Master Servicer and the Depositor
with the provisions of Regulation AB. Therefore, the Servicer agrees that (a)
the obligations of the Servicer hereunder shall be interpreted in such a manner
as to accomplish that purpose, (b) such obligations may change over time due
to
interpretive advice or guidance of the Commission, convention or consensus
among
active participants in the asset-backed securities markets, advice of counsel,
or otherwise in respect of the requirements of Regulation AB, (c) the Servicer
shall agree to enter into such amendments to this Agreement as may be necessary,
in the judgment of the Depositor, the Master Servicer and the Securities
Administrator and their respective counsel, to comply with such interpretive
advice or guidance, convention, consensus, advice of counsel, or otherwise,
(d)
the Servicer shall otherwise comply with requests made by the Trustee, the
Securities Administrator, the Master Servicer or the Depositor, and mutually
agreed upon by the Servicer, for delivery of additional or different information
as such parties may determine in good faith is necessary to comply with the
provisions of Regulation AB and (e) the
Servicer shall (i) agree to such modifications and enter into such amendments
to
this Agreement as may be necessary, in the judgment of the Depositor, the Master
Servicer and
the
Securities Administrator and
their
respective counsel,,
and
mutually agreed upon by the Servicer, to
comply
with any such clarification, interpretive guidance, convention or consensus
and
(ii) promptly
upon request provide to the Depositor or the Securities Administrator for
inclusion in any periodic report required to be filed under the Securities
Exchange Act, such items of information regarding this Agreement and matters
related to the Servicer (collectively, the “Servicer Information”), provided
that
such
information shall be required to be provided by the Servicer only to the extent
that such shall be determined by the Depositor in its sole discretion and its
counsel to be necessary or advisable to comply with any Commission and industry
guidance and convention.
ARTICLE
VII
DEFAULT
Section
7.01 Events
of Default.
“Event
of Default”,
wherever used herein, means any one of the following events:
(a) any
failure by the Servicer to remit to the Master Servicer any payment required
to
be made under the terms of this Agreement which continues unremedied for a
period of [ ] Business Day after the date upon which written
notice of such failure, requiring the same to be remedied, shall have been
given
to the Servicer by the Depositor or by the Master Servicer, or to the Servicer,
the Depositor, the Master Servicer, the Securities Administrator and the Trustee
by Certificateholders entitled to at least [ ]% of the Voting
Rights in the Certificates; or
(b) the
failure on the part of the Servicer duly to observe or perform in any material
respect any other of the covenants or agreements on the part of the Servicer
set
forth in this Agreement which continues unremedied for a period of
[ ] days (except that (x) such number of days shall
be [ ] in the case of a failure to pay any premium for any
insurance policy required to be maintained under this Agreement and
(y) such number of days shall be [ ] in the case of a
failure to observe or perform any of the obligations set forth in
Sections 3.02, 3.23, 3.24 or 8.12) after the earlier of (i) the
date on which written notice of such failure, requiring the same to be remedied,
shall have been given to the Servicer by the Depositor or by the Master
Servicer, or to the Servicer, the Depositor, the Master Servicer, the Securities
Administrator and the Trustee by Certificateholders entitled to at least
[ ]% of the Voting Rights in the Certificates and
(ii) actual knowledge of such failure by a Servicing Officer of the
Servicer; or
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(c) 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,
bankruptcy, readjustment of debt, marshalling of assets and liabilities or
similar proceedings, or for the winding-up or liquidation of its affairs, shall
have been entered against the Servicer and such decree or order shall have
remained in force undischarged or unstayed for a period of [ ]
consecutive days; or
(d) the
Servicer shall consent to the appointment of a conservator or receiver or
liquidator in any insolvency, bankruptcy, readjustment of debt, marshalling
of
assets and liabilities or similar proceedings of or relating to the Servicer
or
of or relating to all or substantially all of its property; or
(e) the
Servicer shall admit in writing its inability generally to pay its debts as
they
become due, file a petition to take advantage of any applicable insolvency
or
reorganization statute, make an assignment for the benefit of its creditors,
or
voluntarily suspend payment of its obligations; or
(f) any
failure of the Servicer to make any P&I Advance on any Remittance Date
required to be made from its own funds pursuant to Section 4.01 which
continues unremedied for [ ] Business Day immediately following
the Remittance Date; or
(g) a
breach
of any representation and warranty of the Servicer referred to in
Section 2.03(a), which materially and adversely affects the interests of
the Certificateholders and which continues unremedied for a period of
[ ] days after the date upon which written notice of such
breach is given to the Servicer by the Master Servicer or by the Depositor,
or
to the Servicer, the Master Servicer, the Depositor, the Securities
Administrator and the Trustee by Certificateholders entitled to at least
[ ]% of the Voting Rights in the Certificates; or
(h) Fitch
reduces its primary subprime servicer rating of the Servicer to “RPS3-“ or
lower, Xxxxx’x reduces its primary subprime servicer rating of the Servicer to
“SQ3” or lower, or Standard & Poor’s reduces its primary subprime servicer
rating of the Servicer to “Average” or lower, and any such downgrade continues
unremedied for a period of ninety days; or
(i) any
failure by the Servicer to duly perform, within the required time period, its
obligations to provide any certifications under Sections 3.02, 3.22, 3.23 3.24
and 3.29 or any other information, data or materials required to be provided
hereunder, including any items required to be included in any Exchange Act
report, which failure continues unremedied for a period of [ ]
days after the date on which written notice of such failure, requiring the
same
to be remedied, shall have been given to the Servicer by any party to this
Agreement or by the Master Servicer; or
(j) a
breach
of the representations and warranties of the Servicer set forth in Schedule
II
hereto, which materially and adversely affects the interests of the
Certificateholders and which continues unremedied for a period of
[ ] days after the date upon which written notice of such
breach is given to the Servicer by the Master Servicer or by the Depositor,
or
to the Servicer, the Master Servicer, the Depositor, the Securities
Administrator and the Trustee by Certificateholders entitled to at least
[ ]% of the Voting Rights in the Certificates.
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If
an
Event of Default described in clauses (a) through (j) of this
Section 7.01 shall occur, then, and in each and every such case, so long as
such Event of Default shall not have been remedied, the Master Servicer may,
or
at the direction of a majority of the Voting Rights the Master Servicer shall,
by notice in writing to the Servicer related to such Event of Default (with
a
copy to each Rating Agency and the Swap Counterparty), terminate all of the
rights and obligations of the Servicer under this Agreement and in and to the
Mortgage Loans and the proceeds thereof, other than its rights as a
Certificateholder hereunder; provided,
however,
that
the Master Servicer shall not be required to give written notice to the Servicer
of the occurrence of an Event of Default described in clauses (b) through
(j) of this Section 7.01 unless and until a Responsible Officer of the
Master Servicer has actual knowledge of the occurrence of such an event;
provided further,
that
the Depositor shall give written notice to the Servicer and the Master Servicer
of the occurrence of an Event of Default described in clause (h) of
this Section 7.01 upon obtaining actual knowledge of the occurrence of such
an event. In the event that a Responsible Officer of the Master Servicer has
actual knowledge of the occurrence of an event of default described in
clause (a) of this Section 7.01, the Master Servicer shall give
written notice to the Servicer of the occurrence of such an event within
[ ] Business Day of the first day on which such Responsible
Officer obtains actual knowledge of such occurrence. On and after the receipt
by
the Servicer of such written notice, all authority and power of the Servicer
hereunder, whether with respect to the Mortgage Loans or otherwise, shall pass
to and be vested in the Master Servicer. Subject to Section 7.02, the
Master Servicer is hereby authorized and empowered to execute and deliver,
on
behalf of the Servicer, as attorney-in-fact or otherwise, any and all documents
and other instruments, and to do or accomplish all other acts or things
necessary or appropriate to effect the purposes of such notice of termination,
whether to complete the transfer and endorsement or assignment of the Mortgage
Loans and related documents, or otherwise. Unless expressly provided in such
written notice, no such termination shall affect any obligation of the Servicer
to pay amounts owed pursuant to Article VIII. The Servicer agrees to
cooperate with the Master Servicer in effecting the termination of the
Servicer’s responsibilities and rights hereunder, including, without limitation,
the transfer to the Master Servicer of all cash amounts which shall at the
time
be credited to the Collection Account, or thereafter be received with respect
to
the Mortgage Loans.
Notwithstanding
any termination of the activities of the Servicer hereunder, the Servicer shall
be entitled to receive from the Trust Fund, prior to transfer of its servicing
obligations hereunder, payment of all accrued and unpaid Servicing Fees and
reimbursement for all outstanding P&I Advances and Servicing
Advances.
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Section
7.02 Master
Servicer to Act; Appointment of Successor.
On and
after the time the Servicer receives a notice of termination pursuant to
Section 3.25 or Section 7.01, the Master Servicer shall, subject to
and to the extent provided in Section 3.05, and subject to the rights of
the Master Servicer to appoint a successor servicer pursuant to this Section
7.02, be the successor to the Servicer in its capacity as servicer under this
Agreement and the transactions set forth or provided for herein and shall be
subject to all the responsibilities, duties and liabilities relating thereto
placed on the Servicer by the terms and provisions hereof and applicable law
including the obligation to make P&I Advances and Servicing Advances,
pursuant to Section 3.25 or Section 7.01. It is understood and
acknowledged by the parties hereto that there will be a period of transition
before the transfer of servicing obligations is fully effective. Notwithstanding
the foregoing, the Master Servicer will have a period (not to exceed
[ ] days) to complete the transfer of all servicing data
and correct or manipulate such servicing data as may be required by the Master
Servicer to correct any errors or insufficiencies in the servicing data or
otherwise enable the Master Servicer to service the Mortgage Loans in accordance
with Accepted Servicing Practices. As compensation therefor, the Master Servicer
shall be entitled to all funds relating to the Mortgage Loans that the Servicer
would have been entitled to charge to the Collection Account if the Servicer
had
continued to act hereunder including, if the Servicer was receiving the
Servicing Fee, the Servicing Fee and the income on investments or gain related
to the Collection Account which the Servicer would be entitled to receive.
Notwithstanding the foregoing, if the Master Servicer has become the successor
to the Servicer in accordance with Section 7.01, the Master Servicer may,
if it shall be unwilling to so act, or shall, if it is prohibited by applicable
law from making P&I Advances and Servicing Advances pursuant to
Section 4.01, if it is otherwise unable to so act or at the written request
of Certificateholders entitled to at least a majority of the Voting Rights,
appoint, or petition a court of competent jurisdiction to appoint, any
established mortgage loan servicing institution the appointment of which does
not adversely affect then current rating of the Certificates by each Rating
Agency, as the successor to the Servicer hereunder in the assumption of all
or
any part of the responsibilities, duties or liabilities of the Servicer
hereunder. Any successor to the Servicer shall make the covenant set forth
in
Section 6.02(b). Any successor to the Servicer shall be an institution
which is willing to service the Mortgage Loans and which executes and delivers
to the Depositor and the Master Servicer an agreement accepting such delegation
and assignment, containing an assumption by such Person of the rights, powers,
duties, responsibilities, obligations and liabilities of the Servicer (other
than liabilities of the Servicer under Section 6.03 incurred prior to
termination of the Servicer under Section 7.01), with like effect as if
originally named as a party to this Agreement; provided,
that
each Rating Agency acknowledges that its rating of the Certificates in effect
immediately prior to such assignment and delegation will not be qualified or
reduced, as a result of such assignment and delegation. Pending appointment
of a
successor to the Servicer hereunder, the Master Servicer, unless the Master
Servicer is prohibited by law from so acting, shall, subject to
Section 3.05, act in such capacity as hereinabove provided. In connection
with such appointment and assumption, the Master Servicer may make such
arrangements for the compensation of such successor out of payments on Mortgage
Loans as it and such successor shall agree; provided,
however,
that no
such compensation shall be in excess of the Servicing Fee Rate and amounts
paid
to the Servicer from investments. The Master Servicer and such successor
servicer shall take such action, consistent with this Agreement, as shall be
necessary to effectuate any such succession. Neither the Master Servicer nor
any
other successor to the Servicer shall be deemed to be in default hereunder
by
reason of any failure to make, or any delay in making, any distribution
hereunder or any portion thereof or any failure to perform, or any delay in
performing, any duties or responsibilities hereunder, in either case caused
by
the failure of the Servicer to deliver or provide, or any delay in delivering
or
providing, any cash, information, documents or records to it.
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Notwithstanding
the foregoing, the parties hereto agree that the Master Servicer, in its
capacity as successor servicer, immediately shall assume all of the obligations
of the Servicer to make Advances and the Master Servicer will assume the
other
duties of the Servicer as soon as practicable, but in no event later than
[ ] days after the Master Servicer becomes successor servicer
pursuant to the preceding paragraph. Notwithstanding the foregoing, the Master
Servicer, in its capacity as successor servicer, shall not be responsible
for
the lack of information and/or documents that it cannot obtain through
reasonable efforts.
In
the
event that the Servicer is terminated pursuant to Section 7.01, such
terminated Servicer shall provide notices to the Mortgagors, transfer the
Servicing Files to a successor servicer and pay all of its own out-of-pocket
costs and expenses at its own expense. In addition, in the event that the
Servicer is terminated pursuant to Section 7.01, such terminated Servicer
shall pay all reasonable out-of-pocket costs and expenses of a servicing
transfer incurred by parties other than such terminated Servicer promptly upon
presentation of reasonable documentation of such costs. If the Master Servicer
is the terminated Servicer (except in the case where the Master Servicer in
its
role as successor servicer is being terminated pursuant to Section 7.01 by
reason of an Event of Default caused solely by the Master Servicer as the
successor servicer and not by the predecessor Servicer’s actions or omissions),
such costs shall be paid by the prior terminated Servicer promptly upon
presentation of reasonable documentation of such costs. If the terminated
Servicer defaults in its obligation to pay such costs and expenses, the same
shall be paid by the successor servicer or the Master Servicer, in which case
the successor servicer or the Master Servicer, as applicable, shall be entitled
to reimbursement therefor from the Trust Fund.
Any
successor to the Servicer as servicer shall give notice to the Mortgagors of
such change of servicer and shall, during the term of its service as servicer,
maintain in force the policy or policies that the Servicer is required to
maintain pursuant to Section 3.13.
Section
7.03 Notification
to Certificateholders.
(a) Upon any termination of or appointment of a successor to the
Servicer, the Securities Administrator shall give prompt written notice thereof
to Certificateholders, each Rating Agency and the Swap
Counterparty.
(b) Within
[ ] days after the occurrence of any Event of Default, the
Securities Administrator shall transmit by mail to all Certificateholders,
each
Rating Agency and the Swap Counterparty notice of each such Event of Default
hereunder known to the Securities Administrator, unless such event shall have
been cured or waived.
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ARTICLE
VIII
CONCERNING
THE TRUSTEE
Section
8.01 Duties
of the Trustee.
The
Trustee, before the occurrence of a Master Servicer Event of Default and
after
the curing of all Master Servicer Events of Default that may have occurred,
shall undertake to perform such duties and only such duties as are specifically
set forth in this Agreement. In case a Master Servicer Event of Default has
occurred and remains uncured, the Trustee shall exercise such of the rights
and
powers vested in it by this Agreement, and use the same degree of care and
skill
in their exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person’s own affairs.
The
Trustee, upon receipt of all resolutions, certificates, statements, opinions,
reports, documents, orders or other instruments furnished to the Trustee that
are specifically required to be furnished pursuant to any provision of this
Agreement, shall examine them to determine whether they are in the form required
by this Agreement. The Trustee shall not be responsible for the accuracy or
content of any resolution, certificate, statement, opinion, report, document,
order, or other instrument.
No
provision of this Agreement shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act or
its
own willful misconduct.
Unless
an
Event of Default known to the Trustee has occurred and is
continuing:
(a) the
duties and obligations of the Trustee shall be determined solely by the express
provisions of this Agreement, the Trustee shall not be liable except for the
performance of the duties and obligations specifically set forth in this
Agreement, no implied covenants or obligations shall be read into this Agreement
against the Trustee, and the Trustee may conclusively rely, as to the truth
of
the statements and the correctness of the opinions expressed therein, upon
any
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Agreement which it believes in good faith to be genuine
and
to have been duly executed by the proper authorities respecting any matters
arising hereunder;
(b) the
Trustee shall not be liable for an error of judgment made in good faith by
a
Responsible Officer or Responsible Officers of the Trustee, unless it is finally
proven that the Trustee was negligent in ascertaining the pertinent facts;
and
(c) the
Trustee shall not be liable with respect to any action taken, suffered, or
omitted to be taken by it in good faith in accordance with the direction of
the
Holders of Certificates evidencing not less than [ ]% of the
Voting Rights of Certificates relating to the time, method, and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee under this Agreement.
Section
8.02 Certain
Matters Affecting the Trustee.
Except
as otherwise provided in Section 8.01:
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(a) the
Trustee may rely upon and shall be protected in acting or refraining from
acting
upon any resolution, Officer’s Certificate, certificate of auditors or any other
certificate, statement, instrument, opinion, report, notice, request, consent,
order, appraisal, bond or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties and the
Trustee shall have no responsibility to ascertain or confirm the genuineness
of
any signature of any such party or parties;
(b) the
Trustee may consult with counsel, financial advisers or accountants and the
advice of any such counsel, financial advisers or accountants and any Opinion
of
Counsel shall be full and complete authorization and protection in respect
of
any action taken or suffered or omitted by it hereunder in good faith and
in
accordance with such advice or Opinion of Counsel;
(c) the
Trustee shall not be 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 it by this Agreement;
(d) the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, approval, bond or other paper or document,
unless requested in writing to do so by the Holders of Certificates evidencing
not less than [ ]% of the Voting Rights allocated to each
Class of Certificates;
(e) the
Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents, accountants, custodians,
nominees or attorneys and the Trustee shall not be responsible for any
misconduct or negligence on the part of any agents, accountants or attorneys
appointed with due care by it hereunder;
(f) the
Trustee shall not be required to risk or expend its own funds or otherwise
incur
any financial liability in the performance of any of its duties or in the
exercise of any of its rights or powers hereunder if it shall have reasonable
grounds for believing that repayment of such funds or indemnity satisfactory
to
it against such risk or liability is not assured to it;
(g) the
Trustee shall not be liable for any loss on any investment of funds pursuant
to
this Agreement;
(h) unless
a
Responsible Officer of the Trustee has actual knowledge of the occurrence of
a
Master Servicer Event of Default or an Event of Default, the Trustee shall
not
be deemed to have knowledge of a Master Servicer Event of Default or an Event
of
Default until a Responsible Officer of the Trustee shall have received written
notice thereof;
(i) the
Trustee shall be under no obligation to exercise any of the trusts, rights
or
powers vested in it by this Agreement or to institute, conduct or defend any
litigation hereunder or in relation hereto at the request, order or direction
of
any of the Certificateholders, pursuant to this Agreement, unless such
Certificateholders shall have offered to the Trustee reasonable security or
indemnity satisfactory to the Trustee against the costs, expenses and
liabilities which may be incurred therein or thereby; and
(j) if
the
Trustee, in its role as successor Master Servicer under this Agreement, assumes
the servicing or master servicing with respect to any of the Mortgage Loans,
it
shall not assume liability for the representations and warranties of the
Servicer or Master Servicer, as applicable, or for any errors or omissions
of
the Servicer or Master Servicer, as applicable.
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Section
8.03 Trustee
Not Liable for Certificates or Mortgage Loans.
The
recitals contained herein and in the Certificates shall be taken as the
statements of the Depositor and the Trustee assumes no responsibility for
their
correctness. The Trustee makes no representations as to the validity or
sufficiency of this Agreement, the Swap Agreement, or of the Certificates
or of
any Mortgage Loan or related document. The Trustee shall not be accountable
for
the use or application by the Depositor, the Master Servicer, the Servicer,
the
Securities Administrator or the Swap Counterparty of any funds paid to the
Depositor, the Master Servicer, the Servicer, the Securities Administrator
or
the Swap Counterparty in respect of the Mortgage Loans or deposited in or
withdrawn from the Collection Account, the Distribution Account or any other
fund or account with respect to the Certificates by the Depositor, the Master
Servicer, the Servicer, the Securities Administrator or the Swap
Counterparty.
The
Trustee shall have no responsibility for filing or recording any financing
or
continuation statement in any public office at any time or to otherwise perfect
or maintain the perfection of any security interest or lien granted to it
hereunder.
Section
8.04 Trustee
May Own Certificates.
The
Trustee in its individual or any other capacity may become the owner or pledgee
of Certificates with the same rights as it would have if it were not the
Trustee.
Section
8.05 Trustee’s
Fees Indemnification and Expenses.
(a) As compensation for its activities under this Agreement, the Trustee
shall be paid its fee by the Master Servicer from the Master Servicer’s own
funds pursuant to a separate agreement. The Trustee shall have no lien on the
Trust Fund for the payment of such fees.
(b) The
Trustee shall be entitled to be reimbursed, from funds on deposit in the
Distribution Account, amounts sufficient to indemnify and hold harmless the
Trustee and any director, officer, employee, or agent of the Trustee against
any
loss, liability, or expense (including reasonable attorneys’ fees) incurred in
connection with any claim or legal action relating to:
(i) this
Agreement,
(ii) the
Certificates, or
(iii) the
performance of any of the Trustee’s duties under this Agreement,
other
than any loss, liability, or expense (i) resulting from any breach of the
Servicer’s obligations in connection with this Agreement for which the Servicer
has performed its obligation to indemnify the Trustee pursuant to
Section 6.05, (ii) resulting from any breach of the Mortgage Loan
Seller’s obligations in connection with this Agreement for which such Mortgage
Loan Seller has performed its obligation to indemnify the Trustee pursuant
to
Section 2.03(h), (iii) resulting from any breach of the Master
Servicer’s obligation hereunder for which the Master Servicer has performed its
obligation to indemnify the Trustee pursuant to this Agreement or
(iv) incurred because of willful misconduct, bad faith, or negligence in
the performance of any of the Trustee’s duties under this Agreement. Without
limiting the foregoing, except as otherwise agreed upon in writing by the
Depositor and the Trustee, and except for any expense, disbursement, or advance
arising from the Trustee’s negligence, bad faith, or willful misconduct, the
Trust Fund shall pay or reimburse the Trustee for all reasonable expenses,
disbursements, and advances incurred or made by the Trustee in accordance with
this Agreement with respect to:
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(A) the
reasonable compensation, expenses, and disbursements of its counsel not
associated with the closing of the issuance of the Certificates,
and
(B) the
reasonable compensation, expenses, and disbursements of any accountant,
engineer, or appraiser that is not regularly employed by the Trustee, to the
extent that the Trustee must engage them to perform services under this
Agreement.
The
Trustee’s right to indemnity and reimbursement under this Section 8.05(b) shall
survive the termination of this Agreement and the resignation or removal of
the
Trustee under this Agreement.
Except
as
otherwise provided in this Agreement or a separate letter agreement between
the
Trustee and the Depositor, the Trustee shall not be entitled to payment or
reimbursement for any routine ongoing expenses incurred by the Trustee in the
ordinary course of its duties as Trustee under this Agreement or for any other
routine expenses incurred by the Trustee; provided,
further,
that no
expense shall be reimbursed hereunder if it would not constitute an
“unanticipated expense incurred by the REMIC” within the meaning of the REMIC
Provisions.
Section
8.06 Eligibility
Requirements for the Trustee.
The
Trustee hereunder shall at all times be a [corporation or association organized
and doing business under the laws of a state or the United States of America,
authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus of at least $50,000,000, subject to supervision or
examination by federal or state authority and with a credit rating which would
not cause any of the Rating Agencies to reduce their respective then current
ratings of the Certificates (or having provided such security from time to
time
as is sufficient to avoid such reduction) as evidenced in writing by each Rating
Agency. If such corporation or association publishes reports of condition at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this
Section 8.06 the combined capital and surplus of such corporation or
association shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published.] In case at any time the
Trustee shall cease to be eligible in accordance with this Section 8.06,
the Trustee shall resign immediately in the manner and with the effect specified
in Section 8.07. The entity serving as Trustee may have normal banking and
trust relationships with the Depositor and its affiliates, the Master Servicer,
the Securities Administrator or the Servicer and its affiliates; provided,
however,
that
such entity cannot be an affiliate of the Depositor or the Servicer other than
the Trustee in its role as successor to the Master Servicer.
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Section
8.07 Resignation
and Removal of the Trustee.
The
Trustee may at any time resign and be discharged from the trusts hereby created
by giving written notice of resignation to the Depositor, the Master Servicer,
the Securities Administrator and each Rating Agency not less than
[ ] days before the date specified in such notice, when, subject
to Section 8.08, such resignation is to take effect and acceptance by a
successor trustee in accordance with Section 8.08 meeting the
qualifications set forth in Section 8.06. If no successor trustee meeting
such qualifications shall have been so appointed and have accepted appointment
within [ ] days after the giving of such notice or
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee.
If
at any
time the Trustee shall cease to be eligible in accordance with Section 8.06
and shall fail to resign after written request thereto by the Depositor, or
if
at any time the Trustee shall become incapable of acting, or shall be adjudged
as bankrupt or insolvent, or a receiver of the Trustee or of its property shall
be appointed, or any public officer shall take charge or control of the Trustee
or of its property or affairs for the purpose of rehabilitation, conservation
or
liquidation, or a tax is imposed with respect to the Trust Fund by any state
in
which the Trustee or the Trust Fund is located and the imposition of such tax
would be avoided by the appointment of a different trustee, then the Depositor
or the Servicer may remove the Trustee and appoint a successor trustee by
written instrument, in triplicate, one copy of which shall be delivered to
the
Trustee, one copy to the Servicer and one copy to the successor
trustee.
The
Holders of Certificates entitled to at least a majority of the Voting Rights
may
at any time remove the Trustee and appoint a successor trustee by written
instrument or instruments, in triplicate, signed by such Holders or their
attorneys-in-fact duly authorized, one complete set of which shall be delivered
by the successor Trustee to the Servicer, one complete set to the Trustee so
removed and one complete set to the successor so appointed. The successor
trustee shall notify each Rating Agency of any removal of the
Trustee.
Any
resignation or removal of the Trustee and appointment of a successor trustee
pursuant to this Section 8.07 shall become effective upon acceptance of
appointment by the successor trustee as provided in
Section 8.08.
Section
8.08 Successor
Trustee.
Any
successor trustee appointed as provided in Section 8.07 shall execute,
acknowledge and deliver to the Depositor and to its predecessor trustee and
the
Servicer an instrument accepting such appointment hereunder and thereupon the
resignation or removal of the predecessor trustee shall become effective and
such successor trustee, without any further act, deed or conveyance, shall
become fully vested with all the rights, powers, duties and obligations of
its
predecessor hereunder, with like effect as if originally named as trustee
herein. The Depositor, the Servicer and the predecessor trustee shall execute
and deliver such instruments and do such other things as may reasonably be
required for more fully and certainly vesting and confirming in the successor
trustee all such rights, powers, duties, and obligations.
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No
successor trustee shall accept appointment as provided in this Section 8.08
unless at the time of its acceptance, the successor trustee is eligible under
Section 8.06 and its appointment does not adversely affect then current
rating of the Certificates.
Upon
acceptance of appointment by a successor trustee as provided in this
Section 8.08, the Depositor shall mail notice of the succession of such
trustee hereunder to all Holders of Certificates. If the Depositor fails
to mail
such notice within [ ] days after acceptance of appointment by
the successor trustee, the successor trustee shall cause such notice to be
mailed at the expense of the Depositor.
Section
8.09 Merger
or Consolidation of the Trustee.
Any
corporation into which the Trustee may be merged or converted or with which
it
may be consolidated or any corporation resulting from any merger, conversion
or
consolidation to which the Trustee shall be a party, or any corporation
succeeding to the business of the Trustee, shall be the successor of the
Trustee
hereunder; provided,
that
such corporation shall be eligible under Section 8.06 without the execution
or filing of any paper or further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding.
Section
8.10 Appointment
of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any
part
of the Trust Fund or property securing any Credit Line Agreement may at the
time
be located, the Servicer and the Trustee acting jointly shall have the power
and
shall execute and deliver all instruments to appoint one or more Persons
approved by the Trustee to act as co-trustee or co-trustees jointly with the
Trustee, or separate trustee or separate trustees, of all or any part of the
Trust Fund, and to vest in such Person or Persons, in such capacity and for
the
benefit of the Certificateholders, such title to the Trust Fund or any part
thereof, whichever is applicable, and, subject to the other provisions of this
Section 8.10, such powers, duties, obligations, rights and trusts as the
Servicer and the Trustee may consider appropriate. If the Servicer shall not
have joined in such appointment within [ ] days after the
receipt by it of a request to do so, or in the case an Event of Default shall
have occurred and be continuing, the Trustee alone shall have the power to
make
such appointment. No co-trustee or separate trustee hereunder shall be required
to meet the terms of eligibility as a successor trustee under Section 8.06
and no notice to Certificateholders of the appointment of any co-trustee or
separate trustee shall be required under Section 8.08.
Every
separate trustee and co-trustee shall, to the extent permitted by law, be
appointed and act subject to the following provisions and
conditions:
(a) To
the
extent necessary to effectuate the purposes of this Section 8.10, all
rights, powers, duties and obligations conferred or imposed upon the Trustee,
except for the obligation of the Trustee (as successor Master Servicer) under
this Agreement to advance funds on behalf of the Master Servicer, shall be
conferred or imposed upon and exercised or performed by the Trustee and such
separate trustee or co-trustee jointly (it being understood that such separate
trustee or co-trustee is not authorized to act separately without the Trustee
joining in such act), except to the extent that under any law of any
jurisdiction in which any particular act or acts are to be performed (whether
as
Trustee hereunder or as successor to the Master Servicer hereunder), the Trustee
shall be incompetent or unqualified to perform such act or acts, in which event
such rights, powers, duties and obligations (including the holding of title
to
the applicable Trust Fund or any portion thereof in any such jurisdiction)
shall
be exercised and performed singly by such separate trustee or co-trustee, but
solely at the direction of the Trustee;
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(b) No
trustee hereunder shall be held personally liable because of any act or omission
of any other trustee hereunder and such appointment shall not, and shall
not be
deemed to, constitute any such separate trustee or co-trustee as agent of
the
Trustee;
(c) The
Trustee may at any time accept the resignation of or remove any separate
trustee
or co-trustee; and
(d) The
Trust
Fund, and not the Trustee, shall be liable for the payment of reasonable
compensation, reimbursement and indemnification to any such separate trustee
or
co-trustee.
Any
notice, request or other writing given to the Trustee shall be deemed to have
been given to each of the separate trustees and co-trustees, when and as
effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article VIII. Each separate trustee and co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or property
specified in its instrument of appointment, either jointly with the Trustee
or
separately, as may be provided therein, subject to all the provisions of this
Agreement, specifically including every provision of this Agreement relating
to
the conduct of, affecting the liability of, or affording protection and
indemnity to, the Trustee. Every such instrument shall be filed with the Trustee
and a copy thereof given to the Master Servicer and the Depositor.
Any
separate trustee or co-trustee may, at any time, constitute the Trustee its
agent or attorney-in-fact, with full power and authority, to the extent not
prohibited by law, to do any lawful act under or in respect of this Agreement
on
its behalf and in its name. If any separate trustee or co-trustee shall die,
become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee.
Section
8.11 Tax
Matters.
It is
intended that the assets with respect to which any REMIC election pertaining
to
the Trust Fund is to be made, as set forth in the Preliminary Statement, shall
constitute, and that the conduct of matters relating to such assets shall be
such as to qualify such assets as, a “real estate mortgage investment conduit”
as defined in and in accordance with the REMIC Provisions. In furtherance of
such intention, the Securities Administrator covenants and agrees that it shall
act as agent (and the Securities Administrator is hereby appointed to act as
agent) on behalf of each REMIC created hereunder and that in such capacity
it
shall:
(a) prepare
and file in a timely manner, a U.S. Real Estate Mortgage Investment Conduit
(REMIC) Income Tax Return (Form 1066 or any successor form adopted by the
Internal Revenue Service), which return the Trustee shall sign upon receipt
from
the Securities Administrator, and the Securities Administrator shall prepare
and
file with the Internal Revenue Service and applicable state or local tax
authorities income tax or information returns for each taxable year with respect
to each REMIC hereunder containing such information and at the times and in
the
manner as may be required by the Code or state or local tax laws, regulations,
or rules, and furnish to Certificateholders the schedules, statements or
information at such times and in such manner as may be required
thereby;
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(b) within
[ ] days of the Closing Date, apply for an employer
identification number from the Internal Revenue Service via Form SS-4 or
any other acceptable method for all tax entities and shall also furnish to
the
Internal Revenue Service, on Form 8811 or as otherwise may be required by
the Code, the name, title, address, and telephone number of the person that
the
holders of the Certificates may contact for tax information relating thereto,
together with such additional information as may be required by such Form,
and
update such information at the time or times in the manner required by the
Code;
(c) make
an
election that each REMIC created hereunder be treated as a REMIC on the federal
tax return for its first taxable year (and, if necessary, under applicable
state
law);
(d) prepare
and forward to the Certificateholders and to the Internal Revenue Service and,
if necessary, state tax authorities, all information returns and reports as
and
when required to be provided to them in accordance with the REMIC Provisions,
including the calculation of any original issue discount using the prepayment
assumption (as described in the Prospectus Supplement);
(e) provide
information necessary for the computation of tax imposed on the transfer of
a
Residual Certificate to a Person that is a Non-Permitted Transferee, or an
agent
(including a broker, nominee or other middleman) of a Non-Permitted Transferee,
or a pass-through entity in which a Non-Permitted Transferee is the record
holder of an interest (the reasonable cost of computing and furnishing such
information may be charged to the Person liable for such tax);
(f) to
the
extent that they are under its control, conduct matters relating to such assets
at all times that any Certificates are outstanding so as to maintain the status
of each REMIC created hereunder as a REMIC under the REMIC
Provisions;
(g) not
knowingly or intentionally take any action or omit to take any action that
would
cause the termination of the REMIC status of any of the REMICs created
hereunder;
(h) pay,
from
the sources specified in the last paragraph of this Section 8.11, the
amount of any federal or state tax, including prohibited transaction taxes
as
described below, imposed on each REMIC created hereunder before its termination
when and as the same shall be due and payable (but such obligation shall not
prevent the Securities Administrator or any other appropriate Person from
contesting any such tax in appropriate proceedings and shall not prevent the
Securities Administrator from withholding payment of such tax, if permitted
by
law, pending the outcome of such proceedings);
(i) cause
federal, state or local income tax or information returns to be signed by the
Securities Administrator or, if required by applicable tax law, the Trustee
or
such other person as may be required to sign such returns by the Code or state
or local laws, regulations or rules; and
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(j) maintain
records relating to each REMIC created hereunder, including the income,
expenses, assets, and liabilities thereof on a calendar year basis and on
the
accrual method of accounting and the adjusted basis of the assets determined
at
such intervals as may be required by the Code, as may be necessary to prepare
the foregoing returns, schedules, statements or information.
The
Holder of the largest Percentage Interest of the Class [R] Certificates
shall act as Tax Matters Person for each REMIC created hereunder, within
the
meaning of Treasury Regulations Section 1.860F-4(d), and the Securities
Administrator is hereby designated as agent of such Certificateholder for
such
purpose (or if the Securities Administrator is not so permitted, such Holder
shall be the Tax Matters Person in accordance with the REMIC Provisions).
In
such capacity, the Securities Administrator shall, as and when necessary
and
appropriate, represent each REMIC created hereunder in any administrative
or
judicial proceedings relating to an examination or audit by any governmental
taxing authority, request an administrative adjustment as to any taxable
year of
each REMIC created hereunder, enter into settlement agreements with any
governmental taxing agency, extend any statute of limitations relating to
any
tax item of each REMIC created hereunder, and otherwise act on behalf of
each
REMIC in relation to any tax matter or controversy involving it.
The
Securities Administrator shall treat the beneficial owners of the Certificates
(other than the Class [P], Class [X] and Class [R] Certificates) as having
entered into a notional principal contract with the beneficial owners of the
Class [X] Certificates. Pursuant to each such notional principal contract,
all
beneficial owners of the LIBOR Certificates shall be treated as having agreed
to
pay, on each Distribution Date, to the beneficial owners of the Class [X]
Certificates an aggregate amount equal to the excess, if any, of (i) the amount
payable on such Distribution Date on the interest in the [Upper Tier] REMIC
corresponding to such Class of Certificates over (ii) the amount payable on
such
Class of Certificates on such Distribution Date (such excess, a “[Class I]
Shortfall”). A [Class I Shortfall] payable from interest collections shall be
allocated to each Class of Certificates to the extent that interest accrued
on
such Class for the related Interest Accrual Period at the Interest Rate for
a
Class, computed by substituting “[REMIC 2] Net Funds Cap” for “[Group I]
Available Funds Cap,” “[Group II] Available Funds Cap,” or “[Class M] Available
Funds Cap,” as applicable in the definition thereof, exceeds the amount of
interest accrued for the related Interest Accrual Period based on the applicable
Available Funds Cap, and a [Class I] Shortfall payable from principal
collections shall be allocated to the most subordinate Class of Certificates
with an outstanding principal balance to the extent of such balance. In
addition, pursuant to such notional principal contract, the beneficial owner
of
the Class [X] Certificates shall be treated as having agreed to pay Basis Risk
Carryover Amounts to the Owners of the LIBOR Certificates in accordance with
the
terms of this Agreement. Any
payments to the Certificates in light of the foregoing shall not be payments
with respect to a “regular interest” in a REMIC within the meaning of Code
Section 860G(a)(1). However, any payment from the Certificates of a [Class
I]
Shortfall shall be treated for tax purposes as having been received by the
beneficial
owners
of such
Certificates in respect of their Interests in the [Upper Tier] REMIC and as
having been paid by such beneficial
owners
to the
Supplemental Interest Trust pursuant to the notional principal
contract. Thus,
each Certificate (other than a Class [P] and Class [R] Certificate) shall be
treated as representing not only ownership of regular interests in the [Upper
Tier] REMIC, but also ownership of an interest in (and obligations with respect
to) a notional principal contract. For tax purposes, the notional principal
contract shall be deemed to have a value in favor of the Certificates entitled
to receive Basis Risk Carryover Amounts of $[ ] as of the
Closing Date.
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Notwithstanding
the priority and sources of payments set forth in Article IV hereof or
otherwise, the Securities Administrator shall account for all distributions
on
the Certificates as set forth in this Section 8.11. In no event shall any
payments of Basis Risk Carryover Amounts provided for in this Section 8.11
be
treated as payments
with respect to a “regular interest” in a REMIC within the meaning of Code
Section 860G(a)(1). The
Securities Administrator shall file or cause to be filed with the IRS together
with Form 1041 or such other form as may be applicable and shall furnish
or
cause to be furnished, to the Class [P] Certificateholders, the
Class [X] Certificateholders, the LIBOR Certificateholders, the respective
amounts described above that are received, in the time or times and in the
manner required by the Code.
To
enable
the Securities Administrator to perform its duties under this Agreement, the
Depositor shall provide to the Securities Administrator within ten days
after the Closing Date all information or data that the Securities Administrator
requests in writing and determines to be relevant for tax purposes to the
valuations and offering prices of the Certificates, including the price, yield,
prepayment assumption, and projected cash flows of the Certificates and the
Mortgage Loans. Moreover, the Depositor shall provide information to the
Securities Administrator concerning the value to each Class of Certificates
of the right to receive Basis Risk Carryover Amounts from the [Excess Reserve
Fund Account]. Unless otherwise advised by the Depositor, for federal income
tax
purposes, the Securities Administrator is hereby directed to assign a value
of
zero to the right of each Holder allocating the purchase price of an initial
Offered Certificateholder between such right and the related Upper Tier Regular
Interest. Thereafter, the Depositor shall provide to the Securities
Administrator promptly upon written request therefor any additional information
or data that the Securities Administrator may, from time to time, reasonably
request to enable the Securities Administrator to perform its duties under
this
Agreement; provided,
however,
that
the Depositor shall not be required to provide any information regarding the
Mortgage Loans that the Servicer is required to provide to the Securities
Administrator pursuant to this Agreement. The Depositor hereby indemnifies
the
Securities Administrator for any losses, liabilities, damages, claims, or
expenses of the Securities Administrator arising from any errors or
miscalculations of the Securities Administrator that result from any failure
of
the Depositor to provide, pursuant to this paragraph, accurate information
or
data to the Securities Administrator on a timely basis.
None
of
the Master Servicer, the Securities Administrator or the Trustee shall (i)
permit the creation of any interests in any REMIC other than the regular and
residual interests set forth in the Preliminary Statement, (ii) receive any
amount representing a fee or other compensation for services (except as
otherwise permitted by this Agreement or the related Mortgage Loan documents)
or
(iii) otherwise knowingly or intentionally take any action, cause the Trust
Fund
to take any action or fail to take (or fail to cause to be taken) any action
reasonably within its control and the scope of duties more specifically set
forth herein, that, under the REMIC Provisions, if taken or not taken, as the
case may be, could (i) endanger the status of any REMIC as a REMIC or (ii)
result in the imposition of a tax upon any REMIC or the Trust Fund (including
but not limited to the tax on “prohibited transactions” as defined in Section
860F(a)(2) of the Code and the tax on contributions to a REMIC set forth in
Section 860G(d) of the Code, or the tax on “net income from foreclosure
property”) unless the Securities Administrator receives an Opinion of Counsel
(at the expense of the party seeking to take such action or, if such party
fails
to pay such expense, and the Securities Administrator determines that taking
such action is in the best interest of the Trust Fund and the
Certificateholders, at the expense of the Trust Fund, but in no event at the
expense of the Securities Administrator) to the effect that the contemplated
action will not, with respect to the Trust Fund or any REMIC created hereunder,
endanger such status or result in the imposition of such a tax).
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If
any
tax is imposed on “prohibited transactions” of a REMIC created hereunder as
defined in Section 860F(a)(2) of the Code, on the “net income from
foreclosure property” of any Lower Tier REMIC as defined in Section 860G(c)
of the Code, on any contribution to either of the Lower Tier REMIC or Upper
Tier
REMIC after the Startup Day pursuant to Section 860G(d) of the Code, or any
other tax is imposed, including any minimum tax imposed on either REMIC pursuant
to Sections 23153 and 24874 of the California Revenue and Taxation Code, if
not paid as otherwise provided for herein, the tax shall be paid by (i) the
Master Servicer, the Trustee, or the Securities Administrator, as applicable,
if
such tax arises out of or results from negligence of the Master Servicer, the
Trustee or the Securities Administrator, as applicable, in the performance
of
any of its obligations under this Agreement, (ii) the Mortgage Loan Seller
if
such tax arises out of or results from such Mortgage Loan Seller’s obligation to
repurchase a Mortgage Loan pursuant to Section 2.03, (iii) the Sponsor, if
such
tax arises out of or results from the Sponsor’s obligation to repurchase a
Mortgage Loan pursuant to Section 2.03(k), (iv) the Servicer, in the case of
any
such minimum tax, and otherwise if such tax arises out of or results from a
breach by the Servicer of any of its obligations under this Agreement, or
(v) in all other cases, or if the Master Servicer, the Trustee, the
Securities Administrator or the Servicer fails to honor its obligations under
the preceding clause (i) or (ii), any such tax will be paid with
amounts otherwise to be distributed to the Certificateholders, as provided
in
Section 4.02(a).
Section
8.12 Commission
Reporting.
(a) The
Securities Administrator shall, in accordance with industry standards, prepare
and file with the Commission, via XXXXX, the following reports in respect of
the
Trust as and to the extent required under the Exchange Act:
(i) (A)
Within [ ] days after each Distribution Date (subject to permitted
extensions under the Exchange Act), the Securities Administrator shall prepare
and file on behalf of the Trust any Form 10-D required by the Exchange Act,
in
form and substance as required by the Exchange Act. The Securities Administrator
shall file each Form 10-D with a copy of the related Monthly Statement attached
thereto. Any disclosure in addition to the Monthly Statement that is required
to
be included on Form 10-D (“Additional Form 10-D Disclosure”) shall be determined
and prepared by and at the direction of the Depositor pursuant to the following
paragraph and the Securities Administrator will have no duty or liability for
any failure hereunder to determine or prepare any Additional Form 10-D
Disclosure, except as set forth in the next paragraph.
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(B)
As
set forth on Exhibit V hereto, within [ ] calendar days after the
related Distribution Date, (i) certain parties (as specified in Exhibit V
hereto), shall be required to provide to the Securities Administrator, to
the
extent known, in XXXXX-compatible form, or in such other form as otherwise
agreed upon by the Securities Administrator and such party, the form and
substance of any Additional Form 10-D Disclosure, if applicable, (ii) the
Securities Administrator shall forward to the Depositor, the form and substance
of the Additional Form 10-D Disclosure, and (iii) the Depositor will approve,
as
to form and substance, or disapprove, as the case may be, the inclusion of
the
Additional Form 10-D Disclosure on Form 10-D. The Depositor will be responsible
for any reasonable fees and expenses assessed or incurred by the Securities
Administrator in connection with including any Additional Form 10-D Disclosure
on Form 10-D pursuant to this paragraph.
(C)
After
preparing the Form 10-D, the Securities Administrator shall forward
electronically a draft copy of the Form 10-D to the Depositor and the Master
Servicer for review. No later than [ ] Business Days prior to the
[ ] calendar day after the related Distribution Date, a senior
officer of the Master Servicer in charge of the master servicing function shall
sign the Form 10-D and return an electronic or fax copy of such signed Form
10-D
(with an original executed hard copy to follow by overnight mail) to the
Securities Administrator. If a Form 10-D cannot be filed on time or if a
previously filed Form 10-D needs to be amended, the Securities Administrator
will follow the procedures set forth in paragraph (d) of this Section 8.12.
Promptly (but no later than [ ] Business Day) after filing with the
Commission, the Securities Administrator will make available on its internet
website a final executed copy of each Form 10-D. The signing party at the Master
Servicer can be contacted at the address set forth in Section 12.05 for notices
to the Master Servicer. Each party to this Agreement acknowledges that the
performance by the Securities Administrator of its duties under this Section
8.12(a)(i) related to the timely preparation and filing of Form 10-D is
contingent upon such parties strictly observing all applicable deadlines in
the
performance of their duties under this Section 8.12(a)(i). The Securities
Administrator shall have no liability for any loss, expense, damage, claim
arising out of or with respect to any failure to properly prepare and/or timely
file such Form 10-D, where such failure results from the Securities
Administrator’s inability or failure to obtain or receive, on a timely basis,
any information from any other party hereto needed to prepare, arrange for
execution or file such Form 10-D, not resulting from its own negligence, bad
faith or willful misconduct.
(ii) (A)
Within [ ] days after the end of each fiscal year of the Trust or
such earlier date as may be required by the Exchange Act (the “10-K
Filing Deadline”)
(it
being understood that the fiscal year for the Trust ends on [ ]
of each year), commencing in [March] 20[ ], the Securities
Administrator shall prepare and file on behalf of the Trust a Form 10-K, in
form
and substance as required by the Exchange Act. Each such Form 10-K shall include
the following items, in each case to the extent they have been delivered to
the
Securities Administrator within the applicable time frames set forth in this
Agreement, (i) an annual compliance statement for the Servicer, each Additional
Servicer, the Master Servicer and the Securities Administrator (each, a
“Reporting
Servicer”)
as
described under Section 3.24(b), (ii)(A) the annual reports on assessment of
compliance with Servicing Criteria for each Reporting Servicer, as described
under Section 3.22, and (B) if each Reporting Servicer’s report on assessment of
compliance with Servicing Criteria described under Section 3.22 identifies
any
material instance of noncompliance, disclosure identifying such instance of
noncompliance, or if each Reporting Servicer’s report on assessment of
compliance with Servicing Criteria described under Section 3.22 is not included
as an exhibit to such Form 10-K, disclosure that such report is not included
and
an explanation why such report is not included, (iii)(A) the registered public
accounting firm attestation report for each Reporting Servicer, as described
under Section 3.23, and (B) if any registered public accounting firm attestation
report described under Section 3.23 identifies any material instance of
noncompliance, disclosure identifying such instance of noncompliance, or if
any
such registered public accounting firm attestation report is not included as
an
exhibit to such Form 10-K, disclosure that such report is not included and
an
explanation why such report is not included, and (iv) a Xxxxxxxx-Xxxxx
Certification as described in Section 3.24. Any disclosure or information in
addition to (i) through (iv) above that is required to be included on Form
10-K
(“Additional
Form 10-K Disclosure”)
shall
be determined and prepared by and at the direction of the Depositor pursuant
to
the following paragraph and the Securities Administrator will have no duty
or
liability for any failure hereunder to determine or prepare any Additional
Form
10-K Disclosure, except as set forth in the next paragraph.
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(B)
As
set forth on Exhibit W hereto, no later than [March 10] (with a [ ]
calendar day cure period) of each year that the Trust is subject to the Exchange
Act reporting requirements, commencing in 20[ ], (i) certain parties
hereto (as specified in Exhibit W) shall be required to provide to the
Securities Administrator, to the extent known, in XXXXX-compatible form, or
in
such other form as otherwise agreed upon by the Securities Administrator and
such party, the form and substance of any Additional Form 10-K Disclosure,
if
applicable, (ii) the Securities Administrator shall forward to the Depositor,
the form and substance of the Additional Form 10-K Disclosure, and (iii) the
Depositor will approve, as to form and substance, or disapprove, as the case
may
be, the inclusion of the Additional Form 10-K Disclosure on Form 10-K. The
Depositor will be responsible for any reasonable fees and expenses assessed
or
incurred by the Securities Administrator in connection with including any
Additional Form 10-K Disclosure on Form 10-K pursuant to this
paragraph.
(C)
After
preparing the Form 10-K, the Securities Administrator shall forward
electronically a draft copy of the Form 10-K to the Master Servicer for review.
No later than [ ] New York City time on the
[ ] Business Day prior to the 10-K Filing Deadline, a senior
officer of the Master Servicer in charge of the master servicing function shall
sign the Form 10-K and return an electronic or fax copy of such signed Form
10-K
(with an original executed hard copy to follow by overnight mail) to the
Securities Administrator. If a Form 10-K cannot be filed on time or if a
previously filed Form 10-K needs to be amended, the Securities Administrator
will follow the procedures set forth in paragraph (d) of this Section 8.12.
Promptly (but no later than [ ] Business Day) after filing with the
Commission, the Securities Administrator will make available on its internet
website a final executed copy of each Form 10-K. The signing party at the Master
Servicer can be contacted at the address set forth in Section 12.05 for notices
to the Master Servicer. The parties to this Agreement acknowledge that the
performance by the Securities Administrator of its duties under this Section
8.12(a)(ii) related to the timely preparation and filing of Form 10-K is
contingent upon such parties (and any Additional Servicer or Servicing Function
Participant) strictly observing all applicable deadlines in the performance
of
their duties under this Section 8.12(a)(ii) and Sections 3.22, 3.23 and 3.24.
The Securities Administrator shall have no liability for any loss, expense,
damage, claim arising out of or with respect to any failure to properly prepare
and/or timely file such Form 10-K, where such failure results from the
Securities Administrator’s inability or failure to obtain or receive, on a
timely basis, any information from any other party hereto needed to prepare,
arrange for execution or file such Form 10-K, not resulting from its own
negligence, bad faith or willful misconduct.
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(iii) (A)
Within [ ] Business Days after the occurrence of an event
requiring disclosure on Form 8-K (each such event, a “Reportable
Event”),
and
if requested by the Depositor, the Securities Administrator shall prepare and
file on behalf of the Trust any Form 8-K, as required by the Exchange Act,
provided
that the
Depositor shall file the initial Form 8-K in connection with the issuance of
the
Certificates. Any disclosure or information related to a Reportable Event or
that is otherwise required to be included on Form 8-K (“Form
8-K Disclosure Information”)
shall
be determined and prepared by and at the direction of the Depositor pursuant
to
the following paragraph and the Securities Administrator will have no duty
or
liability for any failure hereunder to determine or prepare any Form 8-K
Disclosure Information or any Form 8-K, except as set forth in the next
paragraph.
(B)
As
set forth on Exhibit X hereto, for so long as the Trust is subject to the
Exchange Act reporting requirements, no later than the end of business on the
[ ] Business Day after the occurrence of a Reportable Event (i)
certain parties hereto as set forth in Exhibit W shall be required to provide
to
the Securities Administrator, to the extent known, in XXXXX-compatible form,
or
in such other form as otherwise agreed upon by the Securities Administrator
and
such party, the form and substance of any Form 8-K Disclosure Information,
if
applicable, (ii) the Securities Administrator shall forward to the Depositor,
the form and substance of the Form 8-K Disclosure Information, and (iii) the
Depositor will approve, as to form and substance, or disapprove, as the case
may
be, the inclusion of the Form 8-K Disclosure Information. The Depositor will
be
responsible for any reasonable fees and expenses assessed or incurred by the
Securities Administrator in connection with including any Form 8-K Disclosure
Information on Form 8-K pursuant to this paragraph.
(C)
After
preparing the Form 8-K, the Securities Administrator shall forward
electronically a draft copy of the Form 8-K to the Master Servicer for review.
No later than [ ] New York City time on the
[ ] Business Day after the Reportable Event, a senior officer
of the Master Servicer in charge of the master servicing function shall sign
the
Form 8-K and return an electronic or fax copy of such signed Form 8-K (with
an
original executed hard copy to follow by overnight mail) to the Securities
Administrator. If a Form 8-K cannot be filed on time or if a previously filed
Form 8-K needs to be amended, the Securities Administrator will follow the
procedures set forth in paragraph (d) of this Section 8.12. Promptly (but no
later than [ ] Business Day) after filing with the Commission, the
Securities Administrator will, make available on its internet website a final
executed copy of each Form 8-K. The signing party at the Master Servicer can
be
contacted at the address specified in Section 12.05 for notices to the Master
Servicer. The parties to this Agreement acknowledge that the performance by
the
Securities Administrator of its duties under this Section 8.12(d)(iii) related
to the timely preparation and filing of Form 8-K is contingent upon such parties
strictly observing all applicable deadlines in the performance of their duties
under this Section 8.12(d)(iii). The Securities Administrator shall have no
liability for any loss, expense, damage, claim arising out of or with respect
to
any failure to properly prepare and/or timely file such Form 8-K, where such
failure results from the Securities Administrator’s inability or failure to
obtain or receive, on a timely basis, any information from any other party
hereto needed to prepare, arrange for execution or file such Form 8-K, not
resulting from its own negligence, bad faith or willful misconduct.
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(b) The
Depositor acknowledges and agrees that the Securities Administrator may include
in any Exchange Act report all relevant information, data, and exhibits as
the
Securities Administrator may receive in connection with such report irrespective
of any provision or Regulation AB that may permit the exclusion of such
material. By the way of example, the Securities Administrator may file all
assessments of compliance, attestation reports and compliance statements timely
received from any Item 1122 Servicing Function Participant irrespective of
any
applicable minimum pool asset percentage requirement for disclosure related
to
such Servicing Function Participant.
(c) The
Depositor agrees to furnish promptly to the Master Servicer, from time to time
upon request, such additional information, data, reports, documents, and
financial statements within the Depositor’s possession or control as the
Securities Administrator reasonably requests as necessary or appropriate to
prepare and file the foregoing reports. The Securities Administrator shall
make
available to the Depositor copies of all Exchange Act reports filed
hereunder.
(d)
(i) Prior
to
[ ] of the first year in which the Securities Administrator is
able to do so under applicable law, the Securities Administrator shall file
a
Form 15 relating to the automatic suspension of reporting in respect of the
Trust under the Exchange Act.
(ii)
In
the event that the Securities Administrator is unable to timely file with the
Commission all or any required portion of any Form 8-K, 10-D or 10-K required
to
be filed by this Agreement because required disclosure information was either
not delivered to it or delivered to it after the delivery deadlines set forth
in
this Agreement or for any other reason, the Securities Administrator will
immediately notify the Depositor. In the case of Form 10-D and 10-K, the parties
to this Agreement will cooperate to prepare and file a Form 12b-25 and a 10-DA
and 10-KA as applicable, pursuant to Rule 12b-25 of the Exchange Act. In the
case of Form 8-K, the Securities Administrator will, upon receipt of all
required Form 8-K Disclosure Information and upon the approval and direction
of
the Depositor, include such disclosure information on the next Form 10-D. In
the
event that any previously filed Form 8-K, 10-D or 10-K needs to be amended,
the
Securities Administrator will notify the Depositor and the Servicer and such
parties will cooperate to prepare any necessary 8-KA, 10-DA or 10-KA. Any Form
15, From 12b-25 or any amendment to Form 8-K, 10-D or 10-K shall be signed
by a
senior officer of the Master Servicer in charge of the master servicing
function. The parties to this Agreement acknowledge that the performance by
the
Securities Administrator of its duties under this Section 8.12(d) related to
the
timely preparation and filing of Form 15, a Form 12b-25 or any amendment to
Form
8-K, 10-D or 10-K is contingent upon each such party performing its duties
under
this Section. The Securities Administrator shall have no liability for any
loss,
expense, damage, claim arising out of or with respect to any failure to properly
prepare and/or timely file any such Form 15, Form 12b-25 or any amendments
to
Forms 8-K, 10-D or 10-K, where such failure results from the Securities
Administrator’s inability or failure to obtain or receive, on a timely basis,
any information from any other party hereto needed to prepare, arrange for
execution or file such Form 15, Form 12b-25 or any amendments to Forms 8-K,
10-D
or 10-K, not resulting from its own negligence, bad faith or willful misconduct.
The Depositor shall be responsible for all costs and expenses of the Securities
Administrator related to the preparation and filing of any such
amendment.
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(e) Other
than the Exchange Act reports specified above, the Securities Administrator
shall have no responsibility to file any items or reports with the Commission
under the Exchange Act or otherwise; provided,
however,
the
Securities Administrator and Master Servicer will cooperate with the Depositor
in connection with any additional filings with respect to the Trust as the
Depositor deems necessary under the Exchange Act.
(f) The
Depositor shall pay all costs and expenses of the Securities Administrator
related to the preparation and filing of any Current Report on Form 8-K, any
Monthly Statement on Form 10-D (other than the costs and expense of the
Securities Administrator associated with the preparation and filing of the
Monthly Statement), or any amendment to any Exchange Act report. Except as
otherwise provided herein, all expenses incurred by the Securities Administrator
in connection with its preparation and filing of Exchange Act reports hereunder
shall not be reimbursable from the Trust.
Section
8.13 Tax
Classification of the [Excess Reserve Fund Account] and the Supplemental
Interest Trust.
For
federal income tax purposes, the Securities Administrator shall treat the
[Excess Reserve Fund Account] and the Supplemental Interest Trust as
beneficially owned by the holders of the Class [X] Certificates and shall
treat such portion of the Trust Fund as a grantor trust, within the meaning
of
subpart E, Part I of subchapter J of the Code. The Securities
Administrator shall treat the rights that each Class of LIBOR Certificates
has to receive payments of Basis Risk Carryover Amounts from the [Excess Reserve
Fund Account] as rights to receive payments under a notional principal contract
written by the Class [X] Certificateholders in favor of each such
Class and beneficially owned by each such Class through the grantor
trust. Accordingly, each Class of Certificates (excluding the
Class [X], Class [P] and Class [R] Certificates) will be
comprised of two components - an [Upper Tier] REMIC Regular Interest and an
interest in a notional principal contract, and the Class [X] Certificates
will be comprised of two components - an [Upper Tier] REMIC Regular Interest
and
an interest in the [Excess Reserve Fund Account], subject to obligation to
pay
Basis Risk Carryover Amounts. The Securities Administrator shall allocate the
issue price for a Class of Certificates among the respective components for
purposes of determining the issue price of the [Upper Tier] REMIC Regular
Interest component based on information received from the
Depositor.
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ARTICLE
IX
ADMINISTRATION
OF THE MORTGAGE LOANS
BY
THE MASTER SERVICER
Section
9.01 Duties
of the Master Servicer; Enforcement of Servicer Obligations.
(a) The Master Servicer, on behalf of the Trustee, the Securities
Administrator, the Depositor and the Certificateholders, shall monitor the
performance of the obligations of the Servicer under this Agreement, and (except
as set forth below) shall use its reasonable good faith efforts to cause the
Servicer to duly and punctually perform its duties and obligations hereunder.
Upon the occurrence of an Event of Default of which a Responsible Officer of
the
Master Servicer has actual knowledge, the Master Servicer shall promptly notify
the Securities Administrator and the Trustee and shall specify in such notice
the action, if any, the Master Servicer plans to take in respect of such
default. So long as an Event of Default shall occur and be continuing, the
Master Servicer shall take the actions specified in Article VII.
If
(i) the Servicer reports a delinquency on a monthly report and
(ii) the Servicer, by [ ] (New York Time) on the related
Remittance Date, neither makes an Advance nor provides the Securities
Administrator and the Master Servicer with an Officer’s Certificate certifying
that such an Advance would be a Nonrecoverable P&I Advance or Nonrecoverable
Servicing Advance, then the Master Servicer shall deposit in the Distribution
Account not later than the [Business Day] immediately preceding the related
Distribution Date an Advance in an amount equal to the difference between
(x) with respect to each Monthly Payment due on a Mortgage Loan that is
delinquent (other than Relief Act Interest Shortfalls) and for which the
Servicer was required to make an Advance pursuant to this Agreement and
(y) amounts deposited in the Collection Account to be used for Advances
with respect to such Mortgage Loan, except to the extent the Master Servicer
determines any such Advance to be a Nonrecoverable P&I Advance or
Nonrecoverable Servicing Advance. Subject to the foregoing and
Section 7.02, the Master Servicer shall continue to make such Advances for
so long as the Servicer is required to do so under this Agreement. If
applicable, on the [Business Day] immediately preceding the Distribution Date,
the Master Servicer shall deliver an Officer’s Certificate to the Trustee
stating that the Master Servicer elects not to make an Advance in a stated
amount and detailing the reason(s) it deems the Advance to be a Nonrecoverable
P&I Advance or Nonrecoverable Servicing Advance. Any amounts deposited by
the Master Servicer pursuant to this Section 9.01 shall be net of the
Servicing Fee for the related Mortgage Loans.
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(b) The
Master Servicer shall pay the costs of monitoring the Servicer as required
hereunder (including costs associated with (i) termination of the Servicer,
(ii) the appointment of a successor servicer or (iii) the transfer to
and assumption of, the servicing by the Master Servicer) and shall, to the
extent permitted hereunder, seek reimbursement therefor initially from the
terminated Servicer. In the event the full costs associated with the transition
of servicing responsibilities to the Master Servicer are not paid for by
the
predecessor or successor servicer (provided such successor servicer is not
the
Master Servicer), the Master Servicer may be reimbursed therefor by the Trust
for all costs incurred by the Master Servicer associated with any such transfer
of servicing duties from the Servicer to the Master Servicer or any other
successor servicer.
(c) If
the
Master Servicer assumes the servicing with respect to any of the Mortgage Loans,
it will not assume liability for the representations and warranties of the
Servicer it replaces or for any errors or omissions of the
Servicer.
(d) Neither
the Depositor nor the Securities Administrator shall consent to the assignment
by the Servicer of the Servicer’s rights and obligations under this Agreement
without the prior written consent of the Master Servicer, which consent shall
not be unreasonably withheld.
Section
9.02 Assessment,
Attestation Annual Statement as to Compliance of the Master
Servicer.
The Master Servicer will deliver or cause to be delivered to the Depositor
and
the Securities Administrator, on or before [March 15th]
of each
calendar year, commencing in 20[ ], the assessment of compliance,
attestation report and annual statement of compliance required of a Servicing
Function Participant under Item 1122 of Regulation AB.
Section
9.03 [Reserved].
Section
9.04 Maintenance
of Fidelity Bond and Errors and Omissions Insurance.
The
Master Servicer, at its expense, shall maintain in effect a blanket fidelity
bond and an errors and omissions insurance policy, affording coverage with
respect to all directors, officers, directors, employees and other Persons
acting on such Master Servicer’s behalf, and covering errors and omissions in
the performance of the Master Servicer’s obligations hereunder. The errors and
omissions insurance policy and the fidelity bond shall be in such form and
amount generally acceptable for entities serving as master servicers or
trustees.
Section
9.05 Representations
and Warranties of the Master Servicer.
(a) The Master Servicer hereby represents and warrants to the Depositor, the
Securities Administrator and the Trustee, for the benefit of the
Certificateholders, as of the Closing Date that:
(i) it
is a
[ ] validly existing and in good standing under the laws of the
[ ], and as Master Servicer has full power and authority to
transact any and all business contemplated by this Agreement and to execute,
deliver and comply with its obligations under the terms of this Agreement,
the
execution, delivery and performance of which have been duly authorized by all
necessary corporate action on the part of the Master Servicer;
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(ii) the
execution and delivery of this Agreement by the Master Servicer and its
performance and compliance with the terms of this Agreement will not
(A) violate the Master Servicer’s charter or bylaws, (B) violate any
law or regulation or any administrative decree or order to which it is subject
or (C) constitute a default (or an event which, with notice or lapse of
time, or both, would constitute a default) under, or result in the breach
of,
any material contract, agreement or other instrument to which the Master
Servicer is a party or by which it is bound or to which any of its assets
are
subject, which violation, default or breach would materially and adversely
affect the Master Servicer’s ability to perform its obligations under this
Agreement;
(iii) this
Agreement constitutes, assuming due authorization, execution and delivery
hereof
by the other respective parties hereto, a legal, valid and binding obligation
of
the Master Servicer, enforceable against it in accordance with the terms
hereof,
except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium and other laws affecting the enforcement of
creditors’ rights in general, and by general equity principles (regardless of
whether such enforcement is considered in a proceeding in equity or at
law);
(iv) the
Master Servicer is not in default with respect to any order or decree of any
court or any order or regulation of any federal, state, municipal or
governmental agency to the extent that any such default would materially and
adversely affect its performance hereunder;
(v) the
Master Servicer is not a party to or bound by any agreement or instrument or
subject to any charter provision, bylaw or any other corporate restriction
or
any judgment, order, writ, injunction, decree, law or regulation that may
materially and adversely affect its ability as Master Servicer to perform its
obligations under this Agreement or that requires the consent of any third
person to the execution of this Agreement or the performance by the Master
Servicer of its obligations under this Agreement;
(vi) no
litigation is pending or, to the best of the Master Servicer’s knowledge,
threatened against the Master Servicer which would prohibit its entering into
this Agreement or performing its obligations under this Agreement;
(vii) no
consent, approval, authorization or order of any court or governmental agency
or
body is required for the execution, delivery and performance by the Master
Servicer of or compliance by the Master Servicer with this Agreement or the
consummation of the transactions contemplated by this Agreement, except for
such
consents, approvals, authorizations and orders (if any) as have been obtained;
and
(viii) the
consummation of the transactions contemplated by this Agreement are in the
ordinary course of business of the Master Servicer.
(b) It
is
understood and agreed that the representations and warranties set forth in
this
Section shall survive the execution and delivery of this Agreement. The Master
Servicer shall indemnify the Depositor, the Servicer, Securities Administrator,
the Trustee and the Trust and hold them harmless against any loss, damages,
penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments, and other reasonable costs and expenses resulting from any claim,
demand, defense or assertion based on or grounded upon, or resulting from,
a
material breach of the Master Servicer’s representations and warranties
contained in Section 9.05(a) above. It is understood and agreed that the
enforcement of the obligation of the Master Servicer set forth in this
Section 9.05 to indemnify the Depositor, the Servicer, Securities
Administrator, the Trustee and the Trust constitutes the sole remedy of the
Depositor and the Trustee, respecting a breach of the foregoing representations
and warranties. Such indemnification shall survive any termination of the Master
Servicer as Master Servicer hereunder, any termination of this Agreement and
resignation or removal of the Trustee.
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Any
cause
of action against the Master Servicer relating to or arising out of the breach
of any representations and warranties made in this Section shall accrue upon
discovery of such breach by either the Depositor, the Master Servicer,
Securities Administrator or the Trustee or notice thereof by any one of such
parties to the other parties.
Section
9.06 Master
Servicer Events of Default.
Each of
the following shall constitute a “Master
Servicer Event of Default”:
(a) any
failure by the Master Servicer to deposit in the Distribution Account any
payment received by it from the Servicer to make any P&I Advance or required
to be made by the Master Servicer under the terms of this Agreement which
continues unremedied for a period of [ ] Business Days
after the date upon which written notice of such failure, requiring the same
to
be remedied, shall have been given to the Master Servicer by any other party
hereto;
(b) failure
by the Master Servicer to duly observe or perform, in any material respect,
any
other covenants, obligations or agreements of the Master Servicer as set forth
in this Agreement which failure continues unremedied for a period of thirty
(30) days after the date on which written notice of such failure, requiring
the same to be remedied, shall have been given to the Master Servicer by the
Trustee or to the Master Servicer and Trustee by the holders of Certificates
evidencing at least [ ]% of the Voting Rights;
(c) 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,
bankruptcy, readjustment of debt, marshaling of assets and liabilities or
similar proceedings, or for the winding-up or liquidation of its affairs, shall
have been entered against the Master Servicer and such decree or order shall
have remained in force, undischarged or unstayed for a period of
[ ] days;
(d) the
Master Servicer shall consent to the appointment of a conservator or receiver
or
liquidator in any insolvency, bankruptcy, readjustment of debt, marshaling
of
assets and liabilities or similar proceedings of or relating to the Master
Servicer or relating to all or substantially all of its property;
(e) the
Master Servicer shall admit in writing its inability to pay its debts as they
become due, file a petition to take advantage of any applicable insolvency
or
reorganization statute, make an assignment for the benefit of its creditors,
or
voluntarily suspend payment of its obligations for
[ ] Business Days;
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(f) Except
as
otherwise set forth herein, the Master Servicer attempts to assign this
Agreement or its responsibilities hereunder or to delegate its duties hereunder
(or any portion thereof) without the consent of the Securities Administrator
and
the Depositor;
(g) the
indictment of the Master Servicer for the taking of any action by the Master
Servicer, any Affiliate or any director or employee thereof that constitutes
fraud or criminal activity in the performance of its obligations under this
Agreement, in each case, where such indictment materially and adversely affects
the ability of the Master Servicer to perform its obligations under this
Agreement (subject to the condition that such indictment is not dismissed
within
[ ]; or
(h) failure
of the Master Servicer to timely provide the Depositor with the Assessment,
Attestation and Annual Statement of Compliance required by Item 1122 of
Regulation AB in accordance with Section 9. 02.
In
each
and every such case, so long as a Master Servicer Event of Default shall not
have been remedied, in addition to whatever rights the Trustee may have at
law
or equity to damages, including injunctive relief and specific performance,
the
Trustee, by notice in writing to the Master Servicer, may, and upon the request
of the Holders of Certificates representing at least [ ]% of
the Voting Rights shall, terminate with cause all the rights and obligations
of
the Master Servicer under this Agreement.
Upon
receipt by the Master Servicer of such written notice, all authority and power
of the Master Servicer under this Agreement, shall pass to and be vested in
any
successor master servicer appointed hereunder which accepts such appointments.
Upon written request from the Trustee or the Depositor, the Master Servicer
shall prepare, execute and deliver to the successor entity designated by the
Trustee any and all documents and other instruments related to the performance
of its duties hereunder as the Master Servicer and, place in such successor’s
possession all such documents with respect to the master servicing of the
Mortgage Loans and do or cause to be done all other acts or things necessary
or
appropriate to effect the purposes of such notice of termination, at the Master
Servicer’s sole expense. The Master Servicer shall cooperate with the Trustee
and such successor master servicer in effecting the termination of the Master
Servicer’s responsibilities and rights hereunder, including without limitation,
the transfer to such successor master servicer for administration by it of
all
cash amounts which shall at the time be credited to the Distribution Account
or
are thereafter received with respect to the Mortgage Loans.
Section
9.07 Waiver
of Default.
By a
written notice, the Trustee may at the direction of Holders of Certificates
evidencing at least [ ]% of the Voting Rights waive any default
by the Master Servicer 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 Master Servicer 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.
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Section
9.08 Successor
to the Master Servicer.
Upon
termination of the Master Servicer’s responsibilities and duties under this
Agreement, the Trustee shall appoint a successor, which shall succeed to
all
rights and assume all of the responsibilities, duties and liabilities of
the
Master Servicer under this Agreement prior to the termination of the Master
Servicer. Any successor shall be a Xxxxxx Xxx and Xxxxxxx Mac approved servicer
in good standing and acceptable to the Depositor and the Rating Agencies.
In
connection with such appointment and assumption, the Trustee may make such
arrangements for the compensation of such successor out of payments on Mortgage
Loans as it and such successor shall agree; provided,
however,
that in
no event shall the master servicing fee paid to such successor master servicer
exceed that paid to the Master Servicer hereunder. In the event that the
Master
Servicer’s duties, responsibilities and liabilities under this Agreement are
terminated, the Master Servicer shall continue to discharge its duties and
responsibilities hereunder until the effective date of such termination 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 of its successor. The termination of the Master Servicer
shall not become effective until a successor shall be appointed pursuant
hereto
and shall in no event (i) relieve the Master Servicer of responsibility for
the representations and warranties made pursuant to Section 9.05(a) hereof
and the remedies available to the Trustee under Section 9.05(b) hereof, it
being understood and agreed that the provisions of Section 9.05 hereof
shall be applicable to the Master Servicer notwithstanding any such sale,
assignment, resignation or termination of the Master Servicer or the termination
of this Agreement; or (ii) affect the right of the Master Servicer to
receive payment and/or reimbursement of any amounts accruing to it hereunder
prior to the date of termination (or during any transition period in which
the
Master Servicer continues to perform its duties hereunder prior to the date
the
successor master servicer fully assumes its duties).
If
no
successor Master Servicer has accepted its appointment within
[ ] days of the time the Trustee receives the resignation
of the Master Servicer, the Trustee shall be the successor Master Servicer
in
all respects under this Agreement and shall have all the rights and powers
and
be subject to all the responsibilities, duties and liabilities relating thereto,
including the obligation to make Advances; provided,
however,
that
any failure to perform any duties or responsibilities caused by the Master
Servicer’s failure to provide information required by this Agreement shall not
be considered a default by the Trustee hereunder. In the Trustee’s capacity as
such successor, the Trustee shall have the same limitations on liability herein
granted to the Master Servicer. Notwithstanding anything herein to the contrary,
the Trustee in its role as successor Master Servicer shall have no obligation
to
monitor or supervise the Servicer, shall only have the obligation to make
Advances if it terminates the Servicer pursuant to Section 7.01 (in its role
as
successor Master Servicer), and shall make such Advances only pursuant to
Section 7.02. As compensation therefor, the Trustee shall be entitled to receive
the compensation, reimbursement and indemnities otherwise payable to the Master
Servicer, including the fees and other amounts payable pursuant to
Section 9.09 hereof.
Any
successor master servicer appointed as provided herein, shall execute,
acknowledge and deliver to the Master Servicer and to the Trustee an instrument
accepting such appointment, wherein the successor shall make the representations
and warranties set forth in Section 9.05 hereof, and whereupon such
successor shall become fully vested with all of the rights, powers, duties,
responsibilities, obligations and liabilities of the Master Servicer, with
like
effect as if originally named as a party to this Agreement. Any termination
or
resignation of the Master Servicer or termination of this Agreement shall not
affect any claims that the Trustee may have against the Master Servicer arising
out of the Master Servicer’s actions or failure to act prior to any such
termination or resignation or in connection with the Trustee’s assumption of
such obligations, duties and responsibilities.
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Upon
a
successor’s acceptance of appointment as such, the Master Servicer shall notify
by mail the Trustee of such appointment.
Section
9.09 Compensation
of the Master Servicer.
As
compensation for its activities under this Agreement, the Master Servicer
shall
be paid the Master Servicing Fee.
Section
9.10 Merger
or Consolidation.
Any
Person into which the Master Servicer may be merged or consolidated, or any
Person resulting from any merger, conversion, other change in form or
consolidation to which the Master Servicer shall be a party, or any Person
succeeding to the business of the Master Servicer, shall be the successor
to the
Master Servicer 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 successor or resulting Person to the Master Servicer shall (i) be a
Person (or have an Affiliate) that is qualified and approved to service mortgage
loans for Xxxxxx Xxx and Xxxxxxx Mac (provided further
that a
successor Master Servicer that satisfies subclause (i) through an
Affiliate agrees to service the Mortgage Loans in accordance with all applicable
Xxxxxx Mae and Xxxxxxx Mac guidelines) and (ii) have a net worth of not
less than $25,000,000.
Section
9.11 Resignation
of the Master Servicer.
Except
as otherwise provided in Sections 9.08 and 9.10 hereof, the Master Servicer
shall not resign from the obligations and duties hereby imposed on it unless
the
Master Servicer’s duties hereunder are no longer permissible under applicable
law or are in material conflict by reason of applicable law with any other
activities carried on by it and cannot be cured. Any such determination
permitting the resignation of the Master Servicer shall be evidenced by an
Opinion of Counsel that shall be independent to such effect delivered to the
Trustee. No such resignation shall become effective until the Trustee shall
have
assumed, or a successor master servicer satisfactory to the Trustee and the
Depositor shall have assumed, the Master Servicer’s responsibilities and
obligations under this Agreement. Notice of such resignation shall be given
promptly by the Master Servicer and the Depositor to the Trustee.
[If
at
any time, [ ], as Master Servicer, resigns under this
Section 9.11, or is removed as Master Servicer pursuant to
Section 9.06, then at such time [ ] shall also resign (and
shall be entitled to resign) as Securities Administrator under this
Agreement.]
Section
9.12 Assignment
or Delegation of Duties by the Master Servicer.
Except
as expressly provided herein, the Master Servicer shall not assign or transfer
any of its rights, benefits or privileges hereunder to any other Person, or
delegate to or subcontract with, or authorize or appoint any other Person to
perform any of the duties, covenants or obligations to be performed by the
Master Servicer; provided,
however,
that
the Master Servicer shall have the right with the prior written consent of
the
Depositor (which shall not be unreasonably withheld or delayed), and upon
delivery to the Trustee and the Depositor of a letter from each Rating Agency
to
the effect that such action shall not result in a downgrade of the ratings
assigned to any of the Certificates, to delegate or assign to or subcontract
with or authorize or appoint any qualified Person to perform and carry out
any
duties, covenants or obligations to be performed and carried out by the Master
Servicer hereunder. Notice of such permitted assignment shall be given promptly
by the Master Servicer to the Depositor and the Trustee. If, pursuant to any
provision hereof, the duties of the Master Servicer are transferred to a
successor master servicer, the entire compensation payable to the Master
Servicer pursuant hereto shall thereafter be payable to such successor master
servicer but in no event shall the fee payable to the successor master servicer
exceed that payable to the predecessor master servicer.
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Section
9.13 Limitation
on Liability of the Master Servicer.
Neither
the Master Servicer nor any of the directors, officers, employees or agents
of
the Master Servicer shall be under any liability to the Trustee or the
Certificateholders 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 Master Servicer or any such person against
any liability that would otherwise be imposed by reason of willful malfeasance,
bad faith or negligence in the performance of its duties or by reason of
reckless disregard for its obligations and duties under this Agreement. The
Master Servicer and any director, officer, employee or agent of the Master
Servicer may rely in good faith on any document prima facie properly executed
and submitted by any Person respecting any matters arising hereunder. The
Master
Servicer shall be under no obligation to appear in, prosecute or defend any
legal action that is not incidental to its duties as Master Servicer with
respect to the Mortgage Loans under this Agreement and that in its opinion
may
involve it in any expenses or liability; provided,
however,
that
the Master Servicer may in its sole discretion undertake any such action
that it
may deem necessary or desirable in respect to this Agreement and the rights
and
duties of the parties hereto and the interests of the Certificateholders
hereunder. In such event, the legal expenses and costs of such action and
any
liability resulting therefrom, shall be liabilities of the Trust, and the
Master
Servicer shall be entitled to be reimbursed therefor out of the Distribution
Account in accordance with the provisions of Section 9.09 and
Section 9.14.
The
Master Servicer shall not be liable under this Agreement for any acts or
omissions of the Servicer except to the extent that damages or expenses are
incurred as a result of such act or omissions and such damages and expenses
would not have been incurred but for the negligence, willful malfeasance, bad
faith or recklessness of the Master Servicer in supervising, monitoring and
overseeing the performance of the obligations of the Servicer as required under
this Agreement.
Section
9.14 Indemnification;
Third Party Claims.
The
Master Servicer agrees to indemnify the Depositor, the Servicer, Securities
Administrator, the Trustee, and the Trust and hold them harmless against any
and
all claims, losses, penalties, fines, forfeitures, legal fees and related costs,
judgments, and any other costs, liability, fees and expenses that the Depositor,
the Securities Administrator, the Trustee or the Trust may sustain as a result
of the Master Servicer’s (a) willful malfeasance, bad faith or negligence in the
performance of its duties hereunder, (b) reckless disregard for its obligations
and duties under this Agreement or (c) failure to provide the assessment,
attestation and annual statement of compliance in accordance with Section 9.02.
The Depositor, the Servicer, the Securities Administrator and the Trustee shall
immediately notify the Master Servicer if a claim is made by a third party
with
respect to this Agreement or the Mortgage Loans which would entitle the
Depositor, the Servicer, the Securities Administrator, the Trustee or the Trust
to indemnification under this Section 9.14, whereupon the Master Servicer
shall assume the defense of any such claim and pay all expenses in connection
therewith, including counsel fees, and promptly pay, discharge and satisfy
any
judgment or decree which may be entered against it or them in respect of such
claim.
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The
Master Servicer agrees to indemnify and hold harmless the Trustee from and
against any and all claims, losses, penalties, fines, forfeitures, legal
fees
and related costs, judgments, and any other costs, liability, fees and expenses
(including reasonable attorneys’ fees) that the Trustee may sustain as a result
of such liability or obligations of the Master Servicer and in connection
with
the Trustee’s assumption (not including the Trustee’s performance, except to the
extent that costs or liability of the Trustee are created or increased as
a
result of negligent or wrongful acts or omissions of the Master Servicer
prior
to its replacement as Master Servicer) of the Master Servicer’s obligations,
duties or responsibilities under such agreement.
The
Trust
will indemnify the Master Servicer and hold it harmless against any and all
claims, losses, penalties, fines, forfeitures, legal fees and related costs,
judgments, and any other costs, liabilities, fees and expenses that the Master
Servicer may incur or sustain in connection with, arising out of or related
to
this Agreement or the Certificates, except to the extent that any such loss,
liability or expense is related to (i) a material breach of the Master
Servicer’s representations and warranties in this Agreement, (ii) the
Master Servicer’s willful malfeasance, bad faith or negligence or by reason of
its reckless disregard of its duties and obligations under this Agreement or
(iii) failure to provide the assessment, attestation and annual statement of
compliance in accordance with Section 9.02; provided that any such loss,
liability or expense constitutes an “unanticipated expense incurred by the
REMIC” within the meaning of Treasury Regulations
Section 1.860G-1(b)(3)(ii). The Master Servicer shall be entitled to
reimbursement for any such indemnified amount from funds on deposit in the
Distribution Account.
ARTICLE
X
CONCERNING
THE SECURITIES ADMINISTRATOR
Section
10.01 Duties
of Securities Administrator.
The
Securities Administrator shall undertake to perform such duties and only such
duties as are specifically set forth in this Agreement.
The
Securities Administrator, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Securities Administrator that are specifically required to be furnished
pursuant to any provision of this Agreement shall examine them to determine
whether they are in the form required by this Agreement; provided,
however,
that
the Securities Administrator shall not be responsible for the accuracy or
content of any such resolution, certificate, statement, opinion, report,
document, order or other instrument. If any such instrument is found not to
conform in any material respect to the requirements of this Agreement, the
Securities Administrator shall notify the Certificateholders of such non
conforming instrument in the event the Securities Administrator, after so
requesting, does not receive a satisfactorily corrected instrument.
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No
provision of this Agreement shall be construed to relieve the Securities
Administrator from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct; provided,
however,
that:
(i) the
duties and obligations of the Securities Administrator shall be determined
solely by the express provisions of this Agreement, the Securities Administrator
shall not be liable except for the performance of such duties and obligations
as
are specifically set forth in this Agreement, no implied covenants or
obligations shall be read into this Agreement against the Securities
Administrator and the Securities Administrator may conclusively rely, as
to the
truth of the statements and the correctness of the opinions expressed therein,
upon any certificates or opinions furnished to the Securities Administrator
and
conforming to the requirements of this Agreement which it believed in good
faith
to be genuine and to have been duly executed by the proper authorities
respecting any matters arising hereunder;
(ii) the
Securities Administrator shall not be liable for an error of judgment made
in
good faith by a Responsible Officer or Responsible Officers of the Securities
Administrator, unless it shall be conclusively determined by a court of
competent jurisdiction, such determination no longer subject to appeal, that
the
Securities Administrator was negligent in ascertaining the pertinent
facts;
(iii) the
Securities Administrator shall not be liable with respect to any action or
inaction taken, suffered or omitted to be taken by it in good faith in
accordance with the direction of Holders of Certificates evidencing not less
than [ ]% of the Voting Rights of Certificates relating to the
time, method and place of conducting any proceeding for any remedy available
to
the Securities Administrator, or exercising or omitting to exercise any trust
or
power conferred upon the Securities Administrator under this Agreement;
and
(iv) the
Securities Administrator shall not be accountable, shall have no liability
and
makes no representation as to any acts or omissions hereunder of the Master
Servicer or the Trustee.
Section
10.02 Certain
Matters Affecting the Securities Administrator.
Except
as otherwise provided in Section 10.01:
(i) the
Securities Administrator may request and conclusively rely upon and shall be
fully protected in acting or refraining from acting upon any resolution,
Officer’s Certificate, certificate of auditors or any other certificate,
statement, instrument, opinion, report, notice, request, consent, order,
appraisal, bond or other paper or document believed by it to be genuine and
to
have been signed or presented by the proper party or parties and the Securities
Administrator shall have no responsibility to ascertain or confirm the
genuineness of any signature of any such party or parties;
(ii) the
Securities Administrator may consult with counsel, financial advisers or
accountants and the advice of any such counsel, financial advisers or
accountants and any advice or Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken or suffered or
omitted by it hereunder in good faith and in accordance with such advice or
Opinion of Counsel;
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(iii) the
Securities Administrator shall not be liable for any action or inaction taken,
suffered or omitted by it in good faith and believed by it to be authorized
or
within the discretion or rights or powers conferred upon it by this
Agreement;
(iv) the
Securities Administrator shall not be bound to make any investigation into
the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond or other
paper
or document, unless requested in writing so to do by Holders of Certificates
evidencing not less than [ ]% of the Voting Rights allocated to
each Class of Certificates; provided,
however,
that if
the payment within a reasonable time to the Securities Administrator of the
costs, expenses or liabilities likely to be incurred by it in the making
of such
investigation is, in the opinion of the Securities Administrator, not reasonably
assured to the Securities Administrator by the security afforded to it by
the
terms of this Agreement, the Securities Administrator may require reasonable
indemnity against such expense or liability as a condition to so proceeding.
Nothing in this clause (iv) shall derogate from the obligation of the
Master Servicer to observe any applicable law prohibiting disclosure of
information regarding the Mortgagors, provided that the Master Servicer shall
have no liability for disclosure required by this Agreement;
(v) the
Securities Administrator may execute any of the trusts or powers hereunder
or
perform any duties hereunder either directly or by or through agents or
attorneys or a custodian and the Securities Administrator shall not be
responsible for any misconduct or negligence on the part of any such agent,
attorney or custodian appointed by the Securities Administrator with due
care;
(vi) the
Securities Administrator shall not be required to risk or expend its own funds
or otherwise incur any financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers hereunder if it shall
have reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not assured to it, and none of
the
provisions contained in this Agreement shall in any event require the Securities
Administrator to perform, or be responsible for the manner of performance of,
any of the obligations of the Master Servicer or the Trustee under this
Agreement;
(vii) the
Securities Administrator shall be under no obligation to exercise any of the
trusts, rights or powers vested in it by this Agreement or to institute, conduct
or defend any litigation hereunder or in relation hereto at the request, order
or direction of any of the Certificateholders, pursuant to the provisions of
this Agreement, unless such Certificateholders shall have offered to the
Securities Administrator reasonable security or indemnity satisfactory to the
Securities Administrator against the costs, expenses and liabilities which
may
be incurred therein or thereby; and
(viii) the
Securities Administrator shall have no obligation to appear in, prosecute or
defend any legal action that is not incidental to its duties hereunder and
which
in its opinion may involve it in any expense or liability; provided,
however,
that in
the event of a breach or default by the Swap Counterparty under the Swap
Agreement, the Securities Administrator shall pursue all legal remedies
available against the Swap Counterparty under the Swap Agreement, in
consultation with the Depositor; provided,
further,
that
the Securities Administrator may in its discretion undertake any such action
that it may deem necessary or desirable in respect of this Agreement and the
rights and duties of the parties hereto and the interests of the Trustee, the
Securities Administrator and the Certificateholders hereunder. In such event,
the legal expenses and costs of such action and any liability resulting
therefrom shall be expenses, costs and liabilities of the Trust Fund, and the
Securities Administrator shall be entitled to be reimbursed therefor out of
the
Collection Account.
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The
Securities Administrator shall have no duty (A) to see to any recording,
filing, or depositing of this Agreement or any agreement referred to herein
or
any financing statement or continuation statement evidencing a security
interest, or to see to the maintenance of any such recording or filing or
depositing or to any rerecording, refiling or redepositing thereof, (B) to
see to the provision of any insurance or (C) to see to the payment or
discharge of any tax, assessment, or other governmental charge or any lien
or
encumbrance of any kind owing with respect to, assessed or levied against,
any
part of the Trust Fund other than from funds available in the Distribution
Account.
Section
10.03 Securities
Administrator Not Liable for Certificates or Mortgage Loans.
The
recitals contained herein and in the Certificates shall be taken as the
statements of the Depositor or the transferor, as the case may be, and the
Securities Administrator assumes no responsibility for their correctness. The
Securities Administrator makes no representations as to the validity or
sufficiency of this Agreement, the Swap Agreement, or of the Certificates or
of
any Mortgage Loan or related document other than with respect to the Securities
Administrator’s execution and authentication of the Certificates. The Securities
Administrator shall not be accountable for the use or application by the
Depositor, the Trustee, the Master Servicer, or the Swap Counterparty of any
funds paid to the Depositor, the Trustee, the Master Servicer or the Swap
Counterparty in respect of the Mortgage Loans or deposited in or withdrawn
from
the Collection Account or any other fund or account with respect to the
Certificates by the Depositor, the Trustee, the Master Servicer or the Swap
Counterparty.
The
Securities Administrator executes the Certificates not in its individual
capacity but solely as Securities Administrator of the Trust Fund created by
this Agreement, in the exercise of the powers and authority conferred and vested
in it by this Agreement. Each of the undertakings and agreements made on the
part of the Securities Administrator on behalf of the Trust Fund in the
Certificates is made and intended not as a personal undertaking or agreement
by
the Securities Administrator but is made and intended for the purpose of binding
only the Trust Fund.
Section
10.04 Securities
Administrator May Own Certificates.
The
Securities Administrator in its individual or any other capacity may become
the
owner or pledgee of Certificates and may transact business with the parties
hereto and their Affiliates with the same rights as it would have if it were
not
the Securities Administrator.
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Section
10.05 Securities
Administrator’s Fees and Expenses.
The
Securities Administrator shall be entitled to the investment income earned
on
amounts in the Distribution Account during the Securities Administrator Float
Period. The Securities Administrator and any director, officer, employee, agent
or “control person” within the meaning of the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended (“Control
Person”),
of
the Securities Administrator shall be indemnified by the Trust and held harmless
against any loss, liability or expense (including reasonable attorney’s fees)
(i) incurred in connection with any claim or legal action relating to
(a) this Agreement, (b) the Mortgage Loans or (c) the
Certificates, other than any loss, liability or expense incurred by reason
of
willful misfeasance, bad faith or negligence in the performance of any of the
Securities Administrator’s duties hereunder, (ii) incurred in connection
with the performance of any of the Securities Administrator’s duties hereunder,
other than any loss, liability or expense incurred by reason of willful
misfeasance, bad faith or negligence in the performance of any of the Securities
Administrator’s duties hereunder or (iii) incurred by reason of any action
of the Securities Administrator taken at the direction of the
Certificateholders, provided that any such loss, liability or expense
constitutes an “unanticipated expense incurred by the REMIC” within the meaning
of Treasury Regulations Section 1.860G 1(b)(3)(ii). Such indemnity shall
survive the termination of this Agreement or the resignation or removal of
the
Securities Administrator hereunder. Without limiting the foregoing, and except
for any such expense, disbursement or advance as may arise from the Securities
Administrator’s negligence, bad faith or willful misconduct, or which would not
be an “unanticipated expense” within the meaning of the second preceding
sentence, the Securities Administrator shall be reimbursed by the Trust for
all
reasonable expenses, disbursements and advances incurred or made by the
Securities Administrator in accordance with any of the provisions of this
Agreement with respect to: (A) the reasonable compensation and the expenses
and disbursements of its counsel not associated with the closing of the issuance
of the Certificates, (B) the reasonable compensation, expenses and
disbursements of any accountant, engineer, appraiser or other agent that is
not
regularly employed by the Securities Administrator, to the extent that the
Securities Administrator must engage such Persons to perform acts or services
hereunder and (C) printing and engraving expenses in connection with
preparing any Definitive Certificates. The Trust shall fulfill its obligations
under this paragraph from amounts on deposit from time to time in the
Distribution Account.
The
Securities Administrator shall be required to pay all expenses incurred by
it in
connection with its activities hereunder and shall not be entitled to
reimbursement therefor except as provided in this Agreement.
Section
10.06 Eligibility
Requirements for Securities Administrator.
The
Securities Administrator hereunder shall at all times be a corporation or
association organized and doing business under the laws the United States of
America or any state thereof, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least $50,000,000,
subject to supervision or examination by federal or state authority and with
a
credit rating of at least investment grade. If such corporation or association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for
the
purposes of this Section 10.06 the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Securities Administrator shall cease to be eligible in
accordance with the provisions of this Section 10.06, the Securities
Administrator shall resign immediately in the manner and with the effect
specified in Section 10.07 hereof. The entity serving as Securities
Administrator may have normal banking and trust relationships with the Depositor
and its affiliates or the Trustee and its affiliates.
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Any
successor securities administrator (i) may not be the Mortgage Loan Seller,
the Master Servicer, the Servicer, the Depositor or an affiliate of the
Depositor unless such successor securities administrator’s functions are
operated through an institutional trust department of the Securities
Administrator, (ii) must be authorized to exercise corporate trust powers
under the laws of its jurisdiction of organization, and (iii) must be rated
at least “A/F1” by Fitch, if Fitch is a Rating Agency and if rated by Fitch, or
the equivalent rating by Standard & Poor’s or Xxxxx’x. If no successor
securities administrator shall have been appointed and shall have accepted
appointment within [ ] days after the Securities
Administrator ceases to be the Securities Administrator pursuant to
Section 10.07, then the Trustee may (but shall not be obligated to) become
the successor securities administrator. The Depositor shall appoint a successor
to the Securities Administrator in accordance with Section 10.07. The
Trustee shall notify the Rating Agencies of any change of Securities
Administrator.
Section
10.07 Resignation
and Removal of Securities Administrator.
The
Securities Administrator may at any time resign by giving written notice of
resignation to the Depositor and the Trustee and each Rating Agency not less
than [ ] days before the date specified in such notice
when, subject to Section 10.08, such resignation is to take effect, and
acceptance by a successor securities administrator in accordance with
Section 10.08 meeting the qualifications set forth in Section 10.06.
If no successor securities administrator meeting such qualifications shall
have
been so appointed by the Depositor and have accepted appointment within
[ ] days after the giving of such notice of resignation, the
resigning Securities Administrator may petition any court of competent
jurisdiction for the appointment of a successor securities
administrator.
If
at any
time the Securities Administrator shall cease to be eligible in accordance
with
the provisions of Section 10.06 hereof and shall fail to resign after
written request thereto by the Depositor, or if at any time the Securities
Administrator shall become incapable of acting, or shall be adjudged as bankrupt
or insolvent, or a receiver of the Securities Administrator or of its property
shall be appointed, or any public officer shall take charge or control of the
Securities Administrator or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation, or a tax is imposed with respect
to
the Trust Fund by any state in which the Securities Administrator or the Trust
Fund is located and the imposition of such tax would be avoided by the
appointment of a different securities administrator, then the Depositor may
remove the Securities Administrator and appoint a successor securities
administrator by written instrument, in triplicate, one copy of which instrument
shall be delivered to the Securities Administrator so removed, one copy of
which
shall be delivered to the Master Servicer and one copy to the successor
securities administrator.
The
Holders of Certificates entitled to at least [ ]% of the Voting
Rights may at any time remove the Securities Administrator and appoint a
successor securities administrator by written instrument or instruments, in
triplicate, signed by such Holders or their attorneys in fact duly authorized,
one complete set of which instruments shall be delivered by the successor
securities administrator to the Trustee, one complete set to the Securities
Administrator so removed and one complete set to the successor so appointed.
Notice of any removal of the Securities Administrator shall be given to each
Rating Agency by the successor securities administrator.
Any
resignation or removal of the Securities Administrator and appointment of a
successor securities administrator pursuant to any of the provisions of this
Section 10.07 shall become effective upon acceptance by the successor
securities administrator of appointment as provided in Section 10.08
hereof.
If
at any
time, [ ], as Securities Administrator, resigns under this
Section 10.07, or is removed as Securities Administrator pursuant to this
Section 10.07, then at such time [ ] shall also resign
(and shall be entitled to resign) as Master Servicer under this
Agreement.
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Section
10.08 Successor
Securities Administrator.
Any
successor securities administrator (which may be the Trustee) appointed as
provided in Section 10.07 hereof shall execute, acknowledge and deliver to
the Depositor and to its predecessor Securities Administrator and the Trustee
an
instrument accepting such appointment hereunder and thereupon the resignation
or
removal of the predecessor Securities Administrator shall become effective
and
such successor securities administrator, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with the like effect as if originally
named as Securities Administrator herein. The Depositor, the Trustee, the Master
Servicer and the predecessor Securities Administrator shall execute and deliver
such instruments and do such other things as may reasonably be required for
more
fully and certainly vesting and confirming in the successor securities
administrator all such rights, powers, duties, and obligations.
No
successor securities administrator shall accept appointment as provided in
this
Section 10.08 unless at the time of such acceptance such successor
securities administrator shall be eligible under the provisions of
Section 10.06 hereof and its appointment shall not adversely affect then
current rating of the Certificates, as confirmed in writing by each Rating
Agency.
Upon
acceptance by a successor securities administrator of appointment as provided
in
this Section 10.08, the Depositor shall mail notice of the succession of
such Securities Administrator hereunder to all Holders of Certificates. If
the
Depositor fails to mail such notice within [ ] days after
acceptance by the successor securities administrator of appointment, the
successor securities administrator shall cause such notice to be mailed at
the
expense of the Depositor.
Section
10.09 Merger
or Consolidation of Securities Administrator.
Any
corporation or other entity into which the Securities Administrator may be
merged or converted or with which it may be consolidated or any corporation
or
other entity resulting from any merger, conversion or consolidation to which
the
Securities Administrator shall be a party, or any corporation or other entity
succeeding to the business of the Securities Administrator, shall be the
successor of the Securities Administrator hereunder, provided that such
corporation or other entity shall be eligible under the provisions of
Section 10.06 hereof, without the execution or filing of any paper or
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.
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Section
10.10 Assignment
or Delegation of Duties by the Securities Administrator.
Except
as expressly provided herein, the Securities Administrator shall not assign
or
transfer any of its rights, benefits or privileges hereunder to any other
Person, or delegate to or subcontract with, or authorize or appoint any other
Person to perform any of the duties, covenants or obligations to be performed
by
the Securities Administrator; provided,
however,
that
the Securities Administrator shall have the right with the prior written
consent
of the Depositor (which shall not be unreasonably withheld or delayed), and
upon
delivery to the Trustee and the Depositor of a letter from each Rating Agency
to
the effect that such action shall not result in a downgrade of the ratings
assigned to any of the Certificates, to delegate or assign to or subcontract
with or authorize or appoint any qualified Person to perform and carry out
any
duties, covenants or obligations to be performed and carried out by the
Securities Administrator hereunder. Notice of such permitted assignment shall
be
given promptly by the Securities Administrator to the Depositor and the Trustee.
If, pursuant to any provision hereof, the duties of the Securities Administrator
are transferred to a successor securities administrator, the entire compensation
payable to the Securities Administrator pursuant hereto shall thereafter
be
payable to such successor securities administrator but in no event shall
the fee
payable to the successor securities administrator exceed that payable to
the
predecessor securities administrator.
Section
10.11 Attestation,
Annual Statement of Compliance of the Securities Administrator.
The
Securities Administrator will deliver or cause to be delivered to the Depositor,
on or before [March 15th]
of each
calendar year, commencing in 20[ ], the assessment of compliance,
attestation report and annual statement of compliance required of a Servicing
Function Participant under Item 1122 of Regulation AB.
ARTICLE
XI
TERMINATION
Section
11.01 Termination
upon Liquidation or Purchase of the Mortgage Loans.
Subject
to Section 11.03, the obligations and responsibilities of the Depositor,
the Master Servicer, the Servicer, the Securities Administrator and the Trustee
created hereby with respect to the Trust Fund shall terminate upon the earlier
of (a) the exercise of an Option to Purchase, on or after the Optional
Termination Date, in the aggregate of all Mortgage Loans (and REO Properties)
at
the price (the “Termination
Price”)
equal
to the sum of (i) 100.00% of the unpaid principal balance of each Mortgage
Loan (other than in respect of REO Property) plus accrued and unpaid interest
thereon at the applicable Mortgage Rate, (ii) the lesser of (x) the
appraised value of any REO Property as determined by the higher of two
appraisals completed by two independent appraisers selected by the Servicer
at
the expense of that Trust Fund and (y) the unpaid principal balance of each
Mortgage Loan related to any REO Property, in each case plus accrued and unpaid
interest thereon at the applicable Mortgage Rate, (iii) all unxxxxxxxxxx
X&X Xdvances, Servicing Advances and indemnification payments payable to the
Servicer (iv) any unreimbursed indemnification payments payable to the
Trustee, the Securities Administrator, the Master Servicer or the Depositor
under this Agreement and (v) any Swap Termination Payments payable to the Swap
Counterparty as a result of a termination pursuant to this Section 11.01 and
(b) the later of (i) the maturity or other liquidation (or any Advance
with respect thereto) of the last Mortgage Loan remaining in the Trust Fund
and
the disposition of all REO Property and (ii) the distribution to
Certificateholders of all amounts required to be distributed to them pursuant
to
this Agreement. In no event shall the trusts created hereby continue beyond
the
expiration of 21 years from the death of the survivor of the descendants of
Xxxxxx X. Xxxxxxx, the late Ambassador of the United States to the Court of
St. James’s, living on the date hereof.
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Notwithstanding
anything to the contrary contained herein, no such purchase by the Master
Servicer (either upon instruction from the Depositor or voluntarily) shall
be
permitted unless (i) after distribution of the proceeds thereof to the
Certificateholders (other than the Holders of the Class [X], Class [P] and
Residual Certificates and any other Classes of Certificates which constitute
NIM
Securities) pursuant to Section 11.02, the distribution of the remaining
proceeds to the Class [X] and Class [P] Certificates is sufficient to
pay the outstanding principal amount of and accrued and unpaid interest on
the
NIM Securities, to the extent the NIM Securities are then outstanding, or
(ii) prior to such purchase, the Master Servicer, remits to the Securities
Administrator an amount that, together with such remaining proceeds, will
be
sufficient to pay the outstanding principal amount of, and accrued and unpaid
interest on, the NIM Securities, to the extent the NIM Securities are then
outstanding.
Section
11.02 Final
Distribution on the Certificates.
If on
any Remittance Date, the Master Servicer determines that there are no
Outstanding Mortgage Loans and no other funds or assets in the Trust Fund other
than the funds in any Collection Account, the Master Servicer shall direct
the
Securities Administrator promptly to send a Notice of Final Distribution to
each
Certificateholder and to the Swap Counterparty. If the Master Servicer (upon
instruction from the Depositor or voluntarily) elects to exercise their option
to purchase the Mortgage Loans pursuant to clause (a) of
Section 11.01, at least [ ] days prior to the date the Notice of
Final Distribution is to be mailed to the affected Certificateholders, the
Master Servicer shall notify the Depositor, the Swap Counterparty and the
Securities Administrator of (a) the date on which the Servicer intends to
exercise such purchase option and (b) the Termination Price.
A
Notice
of Final Distribution, specifying the Distribution Date on which
Certificateholders may surrender their Certificates for payment of the final
distribution and cancellation, shall be given promptly by the Securities
Administrator by letter to Certificateholders mailed not earlier than the
[ ]th day and not later than the [ ]th day of the
month of such final distribution. Any such Notice of Final Distribution shall
specify (a) the Distribution Date upon which final distribution on the
Certificates will be made upon presentation and surrender of Certificates at
the
office therein designated, (b) the amount of such final distribution,
(c) the location of the office or agency at which such presentation and
surrender must be made and (d) that the Record Date otherwise applicable to
such Distribution Date is not applicable, distributions being made only upon
presentation and surrender of the Certificates at the office therein specified.
The Securities Administrator will give such Notice of Final Distribution to
the
Swap Counterparty and to each Rating Agency at the time such Notice of Final
Distribution is given to Certificateholders.
In
the
event such Notice of Final Distribution is given, the Servicer shall cause
all
funds in the Collection Account to be remitted to the Master Servicer for
deposit in the Distribution Account on the Business Day prior to the applicable
Distribution Date in an amount equal to the final distribution in respect of
the
Certificates. Upon such final deposit with respect to the Trust Fund and the
receipt by the Custodian of a Request for Release therefor, the Custodian shall
promptly release to the Servicer the Custodial Files for the Mortgage
Loans.
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Upon
presentation and surrender of the Certificates, the Securities Administrator
shall cause to be distributed to the Certificateholders of each
Class (after reimbursement of all amounts due to the Servicer, the Master
Servicer, the Securities Administrator, the Depositor, the Trustee and the
Swap
Counterparty hereunder), in each case on the final Distribution Date and
in the
order set forth in Section 4.02, in proportion to their respective
Percentage Interests, with respect to Certificateholders of the same Class,
up
to an amount equal to (i) as to each Class of Regular Certificates
(except the Class [X] Certificates), the Certificate Balance thereof plus
for each such Class and the Class [X] Certificates accrued interest
thereon in the case of an interest-bearing Certificate and all other amounts
to
which such Classes are entitled pursuant to Section 4.02 and (ii) as
to the Residual Certificates, the amount, if any, which remains on deposit
in
the Distribution Account (other than the amounts retained to meet claims)
after
application pursuant to clause (i) above.
In
the
event that any affected Certificateholders shall not surrender Certificates
for
cancellation within [six] months after the date specified in the Notice of
Final
Distribution, the Securities Administrator shall give a second written notice
to
the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
[six] months after such second notice all the applicable Certificates shall
not
have been surrendered for cancellation, the Securities Administrator may take
appropriate steps, or may appoint an agent to take appropriate steps, to contact
the remaining Certificateholders concerning surrender of their Certificates,
and
the cost thereof shall be paid out of the funds and other assets which remain
a
part of the Trust Fund. If within one year after the second notice all
Certificates shall not have been surrendered for cancellation, the
Class [R] Certificateholders shall be entitled to all unclaimed funds and
other assets of the Trust Fund which remain subject hereto.
Section
11.03 Additional
Termination Requirements.
In the
event an Option to Purchase is exercised with respect to the Mortgage Loans
as
provided in Section 11.01, the Trust Fund shall be terminated in accordance
with the following additional requirements, unless the Trustee has been supplied
with an Opinion of Counsel, at the expense of the party upon whose instruction
causes the exercise of an Option to Purchase, to the effect that the failure
to
comply with the requirements of this Section 11.03 will not (i) result
in the imposition of taxes on “prohibited transactions” on either the [Lower
Tier] REMIC or the [Upper Tier] REMIC as defined in Section 860F of the
Code or (ii) cause either the [Lower Tier] REMIC or the [Upper Tier] REMIC
to fail to qualify as a REMIC at any time that any Certificates are
outstanding:
(a) The
Securities Administrator on behalf of the Trustee shall sell all of the assets
of the Trust Fund to the party exercising the Option to Purchase, and, within
90 days of such sale, shall distribute to the Certificateholders the
proceeds of such sale in complete liquidation of each of the [Lower Tier] REMIC
and the [Upper Tier] REMIC; and
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(b) The
Securities Administrator shall attach a statement to the final federal income
tax return for each of the [Lower Tier] REMIC and the [Upper Tier] REMIC
stating
that pursuant to Treasury Regulations Section 1.860F-1, the first day of
the 90-day liquidation period for each such REMIC was the date on which the
Securities Administrator on behalf of the Trustee sold the assets of the
Trust
Fund to the Servicer.
ARTICLE
XII
MISCELLANEOUS
PROVISIONS
Section
12.01 Amendment.
This
Agreement may be amended from time to time by the Depositor, the Mortgage Loan
Seller, the Master Servicer, the Servicer, the Securities Administrator and
the
Trustee, without the consent of any of the Certificateholders or the Swap
Counterparty (except to the extent that the rights or obligations of the Swap
Counterparty hereunder or under the Swap Agreement are affected thereby, and
except to the extent that the ability of the Securities Administrator to perform
fully and timely its obligations under the Swap Agreement is adversely affected,
in which case prior written consent of the Swap Counterparty is required)
(i) to cure any ambiguity or mistake, (ii) to correct any defective
provision herein or to supplement any provision herein which may be inconsistent
with any other provision herein, (iii) to add to the duties of the
Depositor, the Master Servicer, the Servicer, the Securities Administrator
or
the Trustee, (iv) to add any other provisions with respect to matters or
questions arising hereunder or (v) to modify, alter, amend, add to or
rescind any of the terms or provisions contained in this Agreement; provided,
that
any action pursuant to clause (iv) or (v) above shall not, as
evidenced by an Opinion of Counsel (which Opinion of Counsel shall not be an
expense of the Trustee, the Master Servicer, the Securities Administrator or
the
Trust Fund), adversely affect in any material respect the interests of any
Certificateholder; provided,
further,
that
any such action pursuant to clause (iv) or (v) above shall not be
deemed to adversely affect in any material respect the interests of the
Certificateholders if the Person requesting the amendment obtains a letter
from
each Rating Agency stating that the amendment would not result in the
downgrading or withdrawal of the respective ratings then assigned to the
Certificates; it being understood and agreed that any such letter in and of
itself will not represent a determination as to the materiality of any such
amendment and will represent a determination only as to the credit issues
affecting any such rating. The Trustee, the Depositor, the Master Servicer,
the
Mortgage Loan Seller, the Servicer and the Securities Administrator also may
at
any time and from time to time amend this Agreement, but without the consent
of
the Certificateholders or the Swap Counterparty (except to the extent that
the
rights or obligations of the Swap Counterparty hereunder or under the Swap
Agreement are affected thereby, and except to the extent that the ability of
the
Securities Administrator to perform fully and timely its obligations under
the
Swap Agreement is adversely affected, in which case prior written consent of
the
Swap Counterparty is required) to modify, eliminate or add to any of its
provisions to such extent as shall be necessary or helpful to (i) maintain
the qualification of each REMIC created hereunder under the Code,
(ii) avoid or minimize the risk of the imposition of any tax on any REMIC
created hereunder pursuant to the Code that would be a claim at any time prior
to the final redemption of the Certificates or (iii) comply with any other
requirements of the Code; provided,
that
the Trustee and the Master Servicer have been provided an Opinion of Counsel,
which opinion shall be an expense of the party requesting such opinion but
in
any case shall not be an expense of the Trustee or the Trust Fund, to the effect
that such action is necessary or helpful to, as applicable, (i) maintain
such qualification, (ii) avoid or minimize the risk of the imposition of
such a tax or (iii) comply with any such requirements of the
Code.
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This
Agreement may also be amended from time to time by the Depositor, the Master
Servicer, the Servicer, the Mortgage Loan Seller, the Securities Administrator
and the Trustee, but with the consent of the Holders of Certificates evidencing
Percentage Interests aggregating not less than [ ]% of each
Class of Certificates affected thereby for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions
of
this Agreement or of modifying in any manner the rights of the Holders of
Certificates; provided,
however,
that no
such amendment shall (i) reduce in any manner the amount of, or delay the
timing of, payments required to be distributed on any Certificate without
the
consent of the Holder of such Certificate, (ii) adversely affect in any
material respect the interests of the Holders of any Class of Certificates
in a manner other than as described in clause (i), without the consent of
the Holders of Certificates of such Class evidencing, as to such Class,
Percentage Interests aggregating not less than [ ]%,
(iii) reduce the aforesaid percentages of Certificates the Holders of which
are required to consent to any such amendment, without the consent of the
Holders of all such Certificates then outstanding or (iv) adversely affect
the
rights or obligations of the Swap Counterparty hereunder or under the Swap
Agreement or the rights of the Securities Administrator to fully and timely
perform its obligations under the Swap Agreement without obtaining the prior
written consent of the Swap Counterparty.
Notwithstanding
any contrary provision of this Agreement, the Trustee and the Master Servicer
shall not consent to any amendment to this Agreement unless (i) it shall
have first received an Opinion of Counsel, which opinion shall not be an expense
of the Trustee, the Master Servicer or the Trust Fund, to the effect that such
amendment will not cause the imposition of any tax on any REMIC created
hereunder or the Certificateholders or cause any such REMIC to fail to qualify
as a REMIC or the grantor trust to fail to qualify as a grantor trust at any
time that any Certificates are outstanding and (ii) the party seeking such
amendment shall have provided written notice to the Rating Agencies (with a
copy
of such notice to the Trustee and the Master Servicer) of such amendment,
stating the provisions of the Agreement to be amended.
Notwithstanding
the foregoing provisions of this Section 12.01, with respect to any
amendment that significantly modifies the permitted activities of the Trustee
or
the Servicer, any Certificate beneficially owned by the Depositor shall be
deemed not to be outstanding (and shall not be considered when determining
the
percentage of Certificateholders consenting or when calculating the total number
of Certificates entitled to consent) for purposes of determining if the
requisite consents of Certificateholders under this Section 12.01 have been
obtained.
Promptly
after the execution of any amendment to this Agreement requiring the consent
of
Certificateholders, the Trustee shall furnish written notification of the
substance or a copy of such amendment to each Certificateholder and each Rating
Agency.
It
shall
not be necessary for the consent of Certificateholders under this
Section 12.01 to approve the particular form of any proposed amendment, but
it shall be sufficient if such consent shall approve the substance thereof.
The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe.
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Nothing
in this Agreement shall require the Trustee, the Master Servicer or the
Securities Administrator to enter into an amendment without receiving an
Opinion
of Counsel (which opinion shall not be an expense of the Trustee, the Master
Servicer, the Securities Administrator or the Trust Fund), satisfactory to
the
Trustee, the Master Servicer and the Securities Administrator, as applicable,
that (i) such amendment is permitted and is not prohibited by this
Agreement and that all requirements for amending this Agreement have been
complied with and (ii) either (A) the amendment does not adversely
affect in any material respect the interests of any Certificateholder or
(B) the conclusion set forth in the immediately preceding
clause (A) is not required to be reached pursuant to this
Section 12.01.
Notwithstanding
the foregoing, the Mortgage Loan Seller shall not be required or permitted
to
enter into any amendment to this Agreement unless the amendment would have
a
material and adverse effect on its rights or obligations under this
Agreement.
Section
12.02 Recordation
of Agreement; Counterparts.
This
Agreement 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, such recordation to be
effected by the Servicer at the direction and expense of the Depositor, but
only
upon receipt of an Opinion of Counsel to the effect that such recordation
materially and beneficially affects the interests of the
Certificateholders.
For
the
purpose of facilitating the recordation of this 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 but one and the same
instrument.
Section
12.03 Governing
Law.
THIS
AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.
Section
12.04 Intention
of Parties.
(a) It
is intended that the conveyance of the Depositor’s right, title and interest in
and to property constituting the Trust Fund pursuant to this Agreement shall
constitute, and shall be construed as, a sale of such property and not a grant
of a security interest to secure a loan. However, if such conveyance is deemed
to be in respect of a loan, it is intended that: (1) the rights and obligations
of the parties shall be established pursuant to the terms of this Agreement;
(2)
the Depositor hereby grants to the Trustee for the benefit of the Holders of
the
Certificates a first priority security interest to secure repayment of an
obligation in an amount equal to the aggregate Class Principal Amount of the
Certificates in all of the Depositor’s right, title and interest in, to and
under, whether now owned or hereafter acquired, the Trust Fund and the
Supplemental Interest Trust and all proceeds of any and all property
constituting the Trust Fund and the Supplemental Interest Trust to secure
payment of the Certificates (such security interest being, to the extent of
the
assets that constitute the Supplemental Interest Trust, pari
passu
with the
security interest as provided in clause (4) below); (3) this Agreement shall
constitute a security agreement under applicable law; and (4) the Swap
Counterparty shall be deemed, during the term of such agreement and while such
agreement is the property of the Trustee, to have a security interest in all
of
the assets that constitute the Supplemental Interest Trust, but only to the
extent of such Swap Counterparty’s right to payment under the Swap Agreement
(such security interest being pari
passu
with the
security interest as provided in clause (2) above). If such conveyance is deemed
to be in respect of a loan and the trust created by this Agreement terminates
prior to the satisfaction of the claims of any Person holding any Certificate,
the security interest created hereby shall continue in full force and effect
and
the Trustee shall be deemed to be the collateral agent for the benefit of such
Person, and all proceeds shall be distributed by the Securities Administrator
as
herein provided.
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(b) The
Depositor shall, to the extent consistent with this Agreement, take such
reasonable actions as may be necessary to ensure that, if this Agreement were
deemed to create a security interest in the Mortgage Loans and the other
property described above, such security interest would be deemed to be a
perfected security interest of first priority under applicable law and shall
be
maintained as such throughout the term of this Agreement. The Depositor shall,
at its own expense, make all initial filings on or about the Closing Date and
shall forward a copy of such filing or filings to the Trustee. Without limiting
the generality of the foregoing, the Depositor shall prepare and forward for
filing, or shall cause to be forwarded for filing, at the expense of the
Depositor, all filings necessary to maintain the effectiveness of any original
filings necessary under the relevant UCC to perfect the Trustee’s security
interest in or lien on the Mortgage Loans, including without limitation (x)
continuation statements, and (y) such other statements as may be occasioned
by
(1) any change of name of the Sponsor, the Depositor or the Trustee, (2) any
change of location of the jurisdiction of organization of the Sponsor or the
Depositor, (3) any transfer of any interest of the Sponsor or the Depositor
in
any Mortgage Loan or (4) any change under the relevant UCC or other applicable
laws. Neither the Sponsor nor the Depositor shall organize under the law of
any
jurisdiction other than the State under which each is organized as of the
Closing Date (whether changing its jurisdiction of organization or organizing
under an additional jurisdiction) without giving [ ] days prior
written notice of such action to its immediate and intermediate transferee,
including the Trustee. Before effecting such change, the Sponsor or the
Depositor proposing to change its jurisdiction of organization shall prepare
and
file in the appropriate filing office any financing statements or other
statements necessary to continue the perfection of the interests of its
immediate and intermediate transferees, including the Trustee, in the Mortgage
Loans. In connection with the transactions contemplated by this Agreement,
each
of the Sponsor and the Depositor authorizes its immediate or intermediate
transferee to file in any filing office any initial financing statements, any
amendments to financing statements, any continuation statements, or any other
statements or filings described in this paragraph (b).
Section
12.05 Notices.
(a) The Securities Administrator shall use its best efforts to
promptly provide notice to each Rating Agency with respect to each of the
following of which it has actual knowledge:
1. Any
material change or amendment to this Agreement;
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2. The
occurrence of any Event of Default that has not been cured;
3. The
resignation or termination of the Servicer, the Master Servicer, the Securities
Administrator or the Trustee and the appointment of any successor;
4. The
repurchase or substitution of Mortgage Loans pursuant to Section 2.03;
and
5. The
final
payment to Certificateholders.
(b) In
addition, the Securities Administrator shall promptly make available on its
internet website to each Rating Agency copies of the following:
1. Each
report to Certificateholders described in Section 4.03; and
2. Any
notice of a purchase of a Mortgage Loan pursuant to
Section 2.03.
(c) All
directions, demands, consents and notices hereunder shall be in writing and
shall be deemed to have been duly given when delivered to:
(i) in
the
case of the Depositor,
Structured Asset Securities Corporation, 000 Xxxxxxx Xxxxxx, 0xx
Xxxxx,
Xxx Xxxx, Xxx Xxxx 00000, Attention: Mortgage Finance, or such other address
as
may be hereafter furnished to the other parties by the Depositor in
writing;
(ii) in
the
case of the Servicer,
to
[ ],
(Attention: [ ]) or such other address as may be hereafter
furnished to other parties by [ ] in writing;
(iii) in
the
case of the Mortgage Loan Seller,
to
[ ],
(Attention: [ ]), or such other address as may be hereafter
furnished to other parties by [ ] in writing;
(iv) in
the
case of [ ],
to[ ]
Attention: [ ], or such other address as may be hereafter
furnished to the to the other parties by Xxxxx Fargo in writing;
(v) in
the
case of the Trustee,
to
[ ]
(Attention: [ ]), or such other address as may be hereafter
furnished to the to the other parties by the Trustee in writing;
(vi) in
the
case of the Swap Counterparty,
to
[ ],
(Attention:
[ ])
(vii) in
the
case of each of the Rating Agencies,
the
address specified therefor in the definition corresponding to the name of such
Rating Agency. Notices to Certificateholders shall be deemed given when mailed,
first class postage prepaid, to their respective addresses appearing in the
Certificate Register.
Section
12.06 Severability
of Provisions.
If any
one or more of the covenants, agreements, provisions or terms of this Agreement
shall be for any reason whatsoever held invalid, 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
or of the Certificates or the rights of the Holders thereof.
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Section
12.07 Assignment.
Notwithstanding anything to the contrary contained herein, except as provided
in
Section 6.02, this Agreement may not be assigned by the Servicer without
the prior written consent of the Trustee and Depositor;
Section
12.08 Limitation
on Rights of Certificateholders.
The
death or incapacity of any Certificateholder shall not operate to terminate
this
Agreement or the trust created hereby, nor entitle such Certificateholder’s
legal representative or heirs to claim an accounting or to take any action
or
commence any proceeding in any court for a petition or winding up of the
trust
created hereby, or otherwise affect the rights, obligations and liabilities
of
the parties hereto or any of them.
No
Certificateholder shall have any right to vote (except as provided herein)
or in
any manner otherwise control the operation and management of the Trust Fund,
or
the obligations of the parties hereto, nor shall anything herein set forth
or
contained in the terms of the Certificates be construed so as to constitute
the
Certificateholders from time to time as partners or members of an association;
nor shall any Certificateholder be under any liability to any third party
by
reason of any action taken by the parties to this Agreement pursuant to any
provision hereof.
No
Certificateholder shall have any right by virtue or by availing itself of any
provisions of this Agreement to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee a written notice of an Event
of Default and of the continuance thereof, as herein provided, and unless the
Holders of Certificates evidencing not less than [ ]% of the
Voting Rights evidenced by the Certificates shall also have made written request
to the Trustee to institute such action, suit or proceeding in its own name
as
Trustee hereunder and shall have offered to the Trustee such reasonable
indemnity as it may require against the costs, expenses, and liabilities to
be
incurred therein or thereby, and the Trustee, for [ ] days
after its receipt of such notice, request and offer of indemnity shall have
neglected or refused to institute any such action, suit or proceeding; it being
understood and intended, and being expressly covenanted by each
Certificateholder with every other Certificateholder and the Trustee, that
no
one or more Holders of Certificates shall have any right in any manner whatever
by virtue or by availing itself or themselves of any provisions of this
Agreement to affect, disturb or prejudice the rights of the Holders of any
other
of the Certificates, or to obtain or seek to obtain priority over or preference
to any other such Holder or to enforce any right under this Agreement, except
in
the manner herein provided and for the common benefit of all Certificateholders.
For the protection and enforcement of the provisions of this Section 12.08,
each and every Certificateholder and the Trustee shall be entitled to such
relief as can be given either at law or in equity.
Section
12.09 Inspection
and Audit Rights.
The
Servicer agrees that, on reasonable prior notice, which shall not be less than
[ ] Business Days prior written notice, it will permit any
representative of the Depositor or the Trustee during the Servicer’s normal
business hours, to examine all the books of account, records, reports and other
papers of the Servicer relating to the Mortgage Loans, to make copies and
extracts therefrom, to cause such books to be audited by independent certified
public accountants selected by the Depositor or the Trustee and to discuss
its
affairs, finances and accounts relating to the Mortgage Loans with its officers,
employees and independent public accountants (and by this provision the Servicer
hereby authorizes said accountants to discuss with such representative such
affairs, finances and accounts), all at such reasonable times and as often
as
may be reasonably requested. Any out-of-pocket expense of the Servicer incident
to the exercise by the Depositor or the Trustee of any right under this
Section 12.09 shall be borne by the Servicer.
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Section
12.10 Certificates
Nonassessable and Fully Paid.
It is
the intention of the Depositor that Certificateholders shall not be personally
liable for obligations of the Trust Fund, that the interests in the Trust Fund
represented by the Certificates shall be nonassessable for any reason
whatsoever, and that the Certificates, upon due authentication thereof by the
Securities Administrator pursuant to this Agreement, are and shall be deemed
fully paid.
Section
12.11 Rule of
Construction.
Article
and section headings are for the convenience of the reader and shall not be
considered in interpreting this Agreement or the intent of the parties
hereto.
Section
12.12 Waiver
of Jury Trial.
EACH
PARTY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY, WAIVES (TO THE EXTENT
PERMITTED BY APPLICABLE LAW) ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY
DISPUTE ARISING UNDER OR RELATING TO THIS AGREEMENT AND AGREES THAT ANY SUCH
DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY.
[SIGNATURE
PAGE FOLLOWS]
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IN
WITNESS WHEREOF, the Depositor, [ ], [ ],
[ ] and [ ] have caused their names to be
signed hereto by their respective officers thereunto duly authorized as of
the
day and year first above written.
STRUCTURED
ASSET SECURITIES CORPORATION, as Depositor
By
Name:
Title:
[ ],
solely as Trustee and not in its individual capacity
By:
__________________________________________________
Name:
Title:
[ ],
as Master Servicer
By:
__________________________________________________
Name:
Title:
[ ],
as Securities Administrator
By:
__________________________________________________
Name:
Title:
[ ],
as Custodian
By:
__________________________________________________
Name:
Title:
[ ],
as Servicer
By:
__________________________________________________
Name:
Title:
[ ],
as Mortgage Loan Seller
By:
__________________________________________________
Name:
Title:
ACKNOWLEDGED
BY
[ ],
as
Sponsor, solely for the purposes of Section
2.03(k).
By:
__________________________________
Name:
Title:
SCHEDULE
I
Mortgage
Loan Schedule
SCHEDULE
I-1
SCHEDULE
II
HIS
Asset
Securitization Corporation Trust, [ ]
Mortgage
Pass-Through Certificates, Series [ ]
Representations
and Warranties of the Servicer as to Corporate Matters
SCHEDULE
II-1
SCHEDULE
III
Structured
Asset Securities Corporation Trust [ ]
Mortgage
Pass-Through Certificates, Series [ ]
Representations
and Warranties of the Mortgage Loan Seller as to Corporate
Matters
SCHEDULE
III-1
SCHEDULE
IV
Structured
Asset Securities Corporation Trust [ ]
Mortgage
Pass-Through Certificates, Series [ ]
Representations
and Warranties of the Mortgage Loan Seller as to the Individual Mortgage
Loans
SCHEDULE
IV-1
EXHIBIT
A
[UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND
ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS AN INTEREST
IN
A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE “CODE”),
AND
CERTAIN OTHER ASSETS.
NO
TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE TRUSTEE SHALL HAVE
RECEIVED A REPRESENTATION LETTER FROM THE TRANSFEREE OF THIS CERTIFICATE TO
THE
EFFECT THAT EITHER (I) SUCH TRANSFEREE IS NEITHER AN EMPLOYEE BENEFIT PLAN
OR
OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO SECTION 406 OF ERISA AND/OR
SECTION 4975 OF THE CODE OR ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE SUCH
PLAN’S OR ARRANGEMENT’S ASSETS BY REASON OF THEIR INVESTMENT IN THE ENTITY (A
“PLAN”) NOR A PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR USING THE ASSETS OF
ANY SUCH PLAN TO EFFECT SUCH TRANSFER OR (II) THE ACQUISITION AND HOLDING OF
THIS CERTIFICATE ARE ELIGIBLE FOR EXEMPTIVE RELIEF UNDER PROHIBITED TRANSACTION
CLASS EXEMPTION (“PTCE”) 00-00, XXXX 00-0, XXXX 00-00, XXXX 00-00 XX XXXX 96-23.
ANY PURPORTED TRANSFER OF THIS CERTIFICATE PRIOR TO THE TERMINATION OF THE
SWAP
AGREEMENT TO OR ON BEHALF OF A PLAN WITHOUT THE DELIVERY TO THE TRUSTEE OF
A
REPRESENTATION LETTER AS DESCRIBED ABOVE SHALL BE VOID AND OF NO EFFECT. IF
THIS
CERTIFICATE IS A BOOK-ENTRY CERTIFICATE, THE TRANSFEREE WILL BE DEEMED TO HAVE
MADE A REPRESENTATION AS PROVIDED IN CLAUSE (I) OR (II) OF THIS PARAGRAPH,
AS
APPLICABLE.]
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Certificate
No:
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[
]
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[
]
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||
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Cut-off
Date:
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[ ]
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First
Distribution Date:
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[ ]
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Initial
Certificate Balance of this Certificate (“Denomination”):
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$[
]
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Initial
Certificate Balances of all Certificates of this Class:
|
[ ]
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$[ ]
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[ ]
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$[ ]
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CUSIP:
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[ ]
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[ ]
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[ ]
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[ ]
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ISIN:
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[ ]
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[ ]
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[ ]
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[ ]
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EXHIBIT
A-1
STRUCTURED
ASSET SECURITIES CORPORATION
Structured
Asset Securities Corporation Trust [ ]
Mortgage
Pass-Through Certificates, Series [ ]
[Class
A-][Class M-]
evidencing
a percentage interest in the distributions allocable to the Certificates of
the
above-referenced Class.
Principal
in respect of this Certificate is distributable monthly as set forth herein.
Accordingly, the Certificate Balance at any time may be less than the
Certificate Balance as set forth herein. This Certificate does not evidence
an
obligation of, or an interest in, and is not guaranteed by the Depositor, the
Trustee or any other party to the Agreement referred to below or any of their
respective affiliates. Neither this Certificate nor the Mortgage Loans are
guaranteed or insured by any governmental agency or
instrumentality.
This
certifies that [____________] is the registered owner of the Percentage Interest
evidenced by this Certificate (obtained by dividing the denomination of this
Certificate by the aggregate of the denominations of all Certificates of the
Class to which this Certificate belongs) in certain monthly distributions
pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date
specified above (the “Agreement”)
among
Structured Asset Securities Corporation, as depositor (the “Depositor”),
[ ], as servicer, [ ], as mortgage loan
seller, [ ], as master servicer, (in such capacity, the
“Master
Servicer”)
securities administrator (in such capacity, the “Securities
Administrator”)
and
custodian and [ ], as trustee (the “Trustee”).
To
the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.
Reference
is hereby made to the further provisions of this Certificate set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.
This
Certificate shall not be entitled to any benefit under the Agreement or be
valid
for any purpose unless manually authenticated by an authorized signatory of
the
Securities Administrator.
*
*
*
EXHIBIT
A-2
IN
WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
be
duly executed.
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Dated:
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[
],
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not
in its individual capacity, but solely as
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Securities
Administrator
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By:
____________________________________
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Authenticated:
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By:
__________________________________
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Authorized
Signatory of
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[
],
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not
in its individual capacity,
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but
solely as Securities Administrator
|
EXHIBIT
A-3
STRUCTURED
ASSET SECURITIES CORPORATION
Structured
Asset Securities Corporation Trust [ ]
Mortgage
Pass-Through Certificates
This
Certificate is one of a duly authorized issue of Certificates designated as
Structured Asset Securities Corporation Trust [ ] Mortgage
Pass-Through Certificates, of the Series specified on the face hereof (herein
collectively called the “Certificates”),
and
representing a beneficial ownership interest in the Trust Fund created by the
Agreement.
The
Certificateholder, by its acceptance of this Certificate, agrees that it will
look solely
to the
funds on deposit in the Distribution Account or Supplemental Interest Trust
Account for payment hereunder and that neither the Trustee nor the Securities
Administrator is liable to the Certificateholders for any amount payable under
this Certificate or the Agreement or, except as expressly provided in the
Agreement, subject to any liability under the Agreement.
This
Certificate does not purport to summarize the Agreement and reference is made
to
the Agreement for the interests, rights and limitations of rights, benefits,
obligations and duties evidenced thereby, and the rights, duties and immunities
of the Trustee.
Pursuant
to the terms of the Agreement, a distribution will be made on the
[ ] day of each month or, if such day is not a Business Day,
the Business Day immediately following (the “Distribution
Date”),
commencing on the first Distribution Date specified on the face hereof, to
the
Person in whose name this Certificate is registered at the close of business
on
the applicable Record Date in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to Holders of Certificates of the class to which this Certificate belongs on
such Distribution Date pursuant to the Agreement. The Record Date applicable
to
each Distribution Date is the Business Day immediately preceding such
Distribution Date.
Distributions
on this Certificate shall be made by wire transfer of immediately available
funds to the account of the Holder hereof at a bank or other entity having
appropriate facilities therefor, if such Certificateholder shall have so
notified the Securities Administrator in writing at least [five] Business Days
prior to the related Record Date and such Certificateholder shall satisfy the
conditions to receive such form of payment set forth in the Agreement, or,
if
not, by check mailed by first Class mail to the address of such
Certificateholder appearing in the Certificate Register. The final distribution
on each Certificate will be made in like manner, but only upon presentment
and
surrender of such Certificate at the offices designated by the Securities
Administrator for such purposes or such other location specified in the notice
to Certificateholders of such final distribution.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Trustee and
the rights of the Certificateholders under the Agreement at any time by the
parties to the Agreement with the consent of the Holders of Certificates
affected by such amendment evidencing the requisite Percentage Interest, as
provided in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders
of
this Certificate and of any Certificate issued upon the transfer hereof or
in
exchange therefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
EXHIBIT
A-4
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
of
the Securities Administrator upon surrender of this Certificate for registration
of transfer at the offices designated by the Securities Administrator for such
purposes, accompanied by a written instrument of transfer in form satisfactory
to the Securities Administrator duly executed by the holder hereof or such
holder’s attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations and evidencing the
same aggregate Percentage Interest in the Trust Fund will be issued to the
designated transferee or transferees.
The
Certificates are issuable only as registered Certificates without coupons in
denominations specified in the Agreement. As provided in the Agreement and
subject to certain limitations therein set forth, Certificates are exchangeable
for new Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.
No
service charge will be made for any such registration of transfer or exchange,
but the Securities Administrator may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection
therewith.
The
Trustee, the Depositor and the Securities Administrator and any agent of the
Trustee, the Depositor or the Securities Administrator may treat the Person
in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Trustee, the Depositor, the Securities Administrator nor any
such agent shall be affected by any notice to the contrary.
The
Master Servicer, upon the instruction of the Depositor, shall purchase the
Mortgage Loans and therefore cause the termination of the Trust on the initial
Optional Termination Date, which is the Distribution Date following the month
in
which the aggregate Stated Principal Balance of the Mortgage Loans as of the
last day of the related Due Period is less than or equal to
[ ]% of the aggregate Stated Principal Balance of the Mortgage
Loans as of the Cut-off Date; provided,
however,
the
Master Servicer in its own right may exercise the option to purchase the
Mortgage Loans and thereby cause the termination of the Trust on the
Distribution Date following the month in which the aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
is
less than or equal to [ ]% of the aggregate Stated Principal Balance
of the Mortgage Loans as of the Cut-off Date, if the Depositor has not
previously provided instructions to the Master Servicer to exercise such option
on the Depositor’s behalf on such Distribution Date.
The
obligations and responsibilities created by the Agreement will terminate as
provided in Section 11.01 of the Agreement.
EXHIBIT
A-5
Any
term
used herein that is defined in the Agreement shall have the meaning assigned
in
the Agreement, and nothing herein shall be deemed inconsistent with that
meaning.
EXHIBIT
A-6
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto
___________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
(Please
print or typewrite name and address including postal zip code of
assignee)
the
Percentage Interest evidenced by the within Certificate and hereby authorizes
the transfer of registration of such Percentage Interest to assignee on the
Certificate Register of the Trust Fund.
I
(We)
further direct the Securities Administrator to issue a new Certificate of a
like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:
_______________________________________________________________________________________________
Dated:
;
_______________________________________________
<
font id="TAB2" style="LETTER-SPACING: 9pt">
Signature by or on behalf of assignor
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
Distributions
shall be made, by wire transfer or otherwise, in immediately available funds
to
_____________________________________________,
__________________________________________________________________________________,
for
the
account of
__________________________________________________________________________________,
account
number __________, or, if mailed by check, to
__________________________________________________.
Applicable
statements should be mailed to
___________________________________________________,
_______________________________________________________________________________________
This
information is provided by ___________________________________,
the
assignee named above, or _____________________________, as
its
agent.
EXHIBIT
A-7
EXHIBIT
B
[NEITHER
THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
TRANSFEROR DELIVERS TO THE SECURITIES ADMINISTRATOR A TRANSFEROR LETTER IN
THE
FORM OF EXHIBIT H TO THE AGREEMENT REFERRED TO HEREIN AND EITHER
(I) THE SECURITIES ADMINISTRATOR RECEIVES A RULE 144A LETTER IN THE FORM OF
EXHIBIT I TO THE AGREEMENT REFERRED TO HEREIN OR (II) THE SECURITIES
ADMINISTRATOR RECEIVES AN OPINION OF COUNSEL, DELIVERED AT THE EXPENSE OF THE
TRANSFEROR, STATING THAT SUCH TRANSFER MAY BE MADE WITHOUT REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED.
NEITHER
THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR A REPRESENTATION LETTER
TO
THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO
TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
(“ERISA”),
OR A
PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO MATERIALLY
SIMILAR PROVISIONS OF APPLICABLE FEDERAL, STATE OR LOCAL LAW (“SIMILAR
LAW”)
OR A
PERSON INVESTING ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN. IN THE EVENT
THAT SUCH REPRESENTATION IS VIOLATED, OR ANY ATTEMPT IS MADE TO TRANSFER TO
A
PLAN OR ARRANGEMENT SUBJECT TO SECTION 406 OF ERISA, A PLAN SUBJECT TO
SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO SIMILAR LAW, OR A PERSON
ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS OF ANY
SUCH
PLAN OR ARRANGEMENT, SUCH ATTEMPTED TRANSFER OR ACQUISITION SHALL BE VOID AND
OF
NO EFFECT.]
|
Certificate
No.
|
:
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[P]
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|
Cut-off
Date
|
:
|
[
]
|
|
First
Distribution Date
|
:
|
[
]
|
|
Percentage
Interest of this Certificate
|
:
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[___]%
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CUSIP
|
:
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[
]
|
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ISIN
|
:
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[
]
|
EXHIBIT
B-1
STRUCTURED
ASSET SECURITIES CORPORATION
Structured
Asset Securities Corporation Trust [ ]
Mortgage
Pass-Through Certificates, Series [ ]
Class
[P]
evidencing
a percentage interest in the distribution of Prepayment Charges allocable to
the
Certificates of the above-referenced Class.
Distributions
in respect of this Certificate are distributable monthly as set forth herein.
This Certificate does not evidence an obligation of, or an interest in, and
is
not guaranteed by the Depositor, the Trustee or any other party to the Agreement
referred to below or any of their respective affiliates. Neither this
Certificate nor the Mortgage Loans are guaranteed or insured by any governmental
agency or instrumentality.
This
certifies that TFINN & CO. is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the denomination
of
this Certificate by the aggregate of the denominations of all Certificates
of
the Class to which this Certificate belongs) in certain monthly distributions
of
Prepayment Charges pursuant to a Pooling and Servicing Agreement dated as of
the
Cut-off Date specified above (the “Agreement”)
among
Structured Asset Securities Corporation, as depositor (the “Depositor”),
[ ], as servicer,
[ ],
as mortgage loan seller,
[ ],
as master servicer, (in such capacity, the “Master
Servicer”)
securities administrator (in such capacity, the “Securities
Administrator”)
and
custodian and
[ ],
as trustee (the “Trustee”).
To
the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.
This
Certificate does not have an Interest Rate and will solely be entitled to
receive distributions of Prepayment Charges to the extent set forth in the
Agreement. In addition, any distribution of the proceeds of any remaining assets
of the Trust will be made only upon presentment and surrender of this
Certificate at the offices designated by the Securities Administrator for such
purpose, or such other location specified in the notice to
Certificateholders.
No
transfer of a Certificate of this Class shall be made unless such disposition
is
exempt from the registration requirements of the Securities Act of 1933, as
amended (the “1933 Act”),
and
any applicable state securities laws or is made in accordance with the 1933
Act
and such laws. In the event of any such transfer, the Securities Administrator
shall require the transferor to execute a transferor certificate (in
substantially the form attached to the Agreement) and deliver either (i) a
Rule 144A Letter, in either case substantially in the form attached to the
Agreement, or (ii) a written Opinion of Counsel to the Securities
Administrator that such transfer may be made pursuant to an exemption,
describing the applicable exemption and the basis therefor, from the 1933 Act
or
is being made pursuant to the 1933 Act, which Opinion of Counsel shall be an
expense of the transferor.
EXHIBIT
B-2
No
transfer of a Certificate of this Class shall be made unless the Securities
Administrator shall have received a representation letter from the transferee
of
such Certificate, acceptable to and in form and substance satisfactory to the
Securities Administrator, to the effect that such transferee is not an employee
benefit plan subject to Section 406 of ERISA, Section 4975 of the Code
or any materially similar provisions of applicable federal, state or local
law
(“Similar
Law”),
or a
person acting on behalf of or investing plan assets of any such plan, which
representation letter shall not be an expense of the Securities
Administrator.
Reference
is hereby made to the further provisions of this Certificate set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.
This
Certificate shall not be entitled to any benefit under the Agreement or be
valid
for any purpose unless manually authenticated by an authorized signatory of
the
Securities Administrator.
*
*
*
EXHIBIT
B-3
IN
WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
be
duly executed.
|
Dated:
|
|
|
[
],
|
|
|
not
in its individual capacity, but solely as
|
|
|
Securities
Administrator
|
|
|
By:
____________________________________
|
|
|
Authenticated:
|
|
|
By:
__________________________________
|
|
|
Authorized
Signatory of
|
|
|
[
],
|
|
|
not
in its individual capacity,
|
|
|
but
solely as Securities Administrator
|
EXHIBIT
B-4
STRUCTURED
ASSET SECURITIES CORPORATION
Structured
Asset Securities Corporation Trust [ ]
Mortgage
Pass-Through Certificates
This
Certificate is one of a duly authorized issue of Certificates designated as
Structured Asset Securities Corporation Trust [ ] Mortgage
Pass-Through Certificates, of the Series specified on the face hereof (herein
collectively called the “Certificates”),
and
representing a beneficial ownership interest in the Trust Fund created by the
Agreement.
The
Certificateholder, by its acceptance of this Certificate, agrees that it will
look solely
to the
funds on deposit in the Distribution Account or constituting Prepayment Charges
for payment hereunder and that neither the Trustee nor the Securities
Administrator is liable to the Certificateholders for any amount payable under
this Certificate or the Agreement or, except as expressly provided in the
Agreement, subject to any liability under the Agreement.
This
Certificate does not purport to summarize the Agreement and reference is made
to
the Agreement for the interests, rights and limitations of rights, benefits,
obligations and duties evidenced thereby, and the rights, duties and immunities
of the Trustee.
Pursuant
to the terms of the Agreement, a distribution will be made on the
[ ]th day of each month or, if such day is not a Business Day,
the Business Day immediately following (the “Distribution
Date”),
commencing on the first Distribution Date specified on the face hereof, to
the
Person in whose name this Certificate is registered at the close of business
on
the applicable Record Date in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to Holders of Certificates of the class to which this Certificate belongs on
such Distribution Date pursuant to the Agreement. The Record Date applicable
to
each Distribution Date is the last Business Day of the month next preceding
the
month of such Distribution Date.
Distributions
on this Certificate shall be made by wire transfer of immediately available
funds to the account of the Holder hereof at a bank or other entity having
appropriate facilities therefor, if such Certificateholder shall have so
notified the Securities Administrator in writing at least [five] Business Days
prior to the related Record Date and such Certificateholder shall satisfy the
conditions to receive such form of payment set forth in the Agreement, or,
if
not, by check mailed by first Class mail to the address of such
Certificateholder appearing in the Certificate Register. The final distribution
on each Certificate will be made in like manner, but only upon presentment
and
surrender of such Certificate at the offices designated by the Securities
Administrator for such purposes or such other location specified in the notice
to Certificateholders of such final distribution.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Trustee and
the rights of the Certificateholders under the Agreement at any time by the
parties to the Agreement with the consent of the Holders of Certificates
affected by such amendment evidencing the requisite Percentage Interest, as
provided in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders
of
this Certificate and of any Certificate issued upon the transfer hereof or
in
exchange therefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
EXHIBIT
B-5
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
of
the Securities Administrator upon surrender of this Certificate for registration
of transfer at the offices designated by the Securities Administrator for such
purposes, accompanied by a written instrument of transfer in form satisfactory
to the Securities Administrator duly executed by the holder hereof or such
holder’s attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations and evidencing the
same aggregate Percentage Interest in the Trust Fund will be issued to the
designated transferee or transferees.
The
Certificates are issuable only as registered Certificates without coupons in
denominations specified in the Agreement. As provided in the Agreement and
subject to certain limitations therein set forth, Certificates are exchangeable
for new Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.
No
service charge will be made for any such registration of transfer or exchange,
but the Securities Administrator may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection
therewith.
The
Trustee, the Depositor and the Securities Administrator and any agent of the
Trustee, the Depositor or the Securities Administrator may treat the Person
in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Trustee, the Depositor, the Securities Administrator nor any
such agent shall be affected by any notice to the contrary.
The
Master Servicer, upon the instruction of the Depositor, shall purchase the
Mortgage Loans and therefore cause the termination of the Trust on the initial
Optional Termination Date, which is the Distribution Date following the month
in
which the aggregate Stated Principal Balance of the Mortgage Loans as of the
last day of the related Due Period is less than or equal to
[ ]% of the aggregate Stated Principal Balance of the Mortgage
Loans as of the Cut-off Date; provided,
however,
the
Master Servicer in its own right may exercise the option to purchase the
Mortgage Loans and thereby cause the termination of the Trust on the
Distribution date following the month in which the aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
is
less than or equal to [ ]% of the aggregate Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date, if the Depositor has
not
previously provided instructions to the Master Servicer to exercise such option
on the Depositor’s behalf on such Distribution Date.
The
obligations and responsibilities created by the Agreement will terminate as
provided in Section 11.01 of the Agreement.
EXHIBIT
B-6
Any
term
used herein that is defined in the Agreement shall have the meaning assigned
in
the Agreement, and nothing herein shall be deemed inconsistent with that
meaning.
EXHIBIT
B-7
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________(Please
print or typewrite name and address including postal zip code of assignee)
the
Percentage Interest evidenced by the within Certificate and hereby authorizes
the transfer of registration of such Percentage Interest to assignee on the
Certificate Register of the Trust Fund.
I
(We)
further direct the Securities Administrator to issue a new Certificate of
a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:
_______________________________________________________________________________________________
Dated:
_______________________________________________
Signature
by or on behalf of assignor
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
Distributions
shall be made, by wire transfer or otherwise, in immediately available funds
to
_____________________________________________,
__________________________________________________________________________________,
for the account of
__________________________________________________________________________________,
account number __________, or, if mailed by check, to
__________________________________________________. Applicable statements
should
be mailed to ___________________________________________________,
_______________________________________________________________________________________
This
information is provided by ___________________________________, the assignee
named above, or _____________________________, as its agent.
EXHIBIT
B-8
EXHIBIT
C
[SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL INTEREST”
IN TWO “REAL ESTATE MORTGAGE INVESTMENT CONDUITS,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
AS
AMENDED (THE “CODE”).
NEITHER
THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR A TRANSFER AFFIDAVIT IN
ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.
NEITHER
THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED (I) TO A PERSON
OTHER THAN A PERMITTED TRANSFEREE IN COMPLIANCE WITH SECTION 5.02(C) OF THE
AGREEMENT OR (II) UNLESS THE TRANSFEREE DELIVERS TO THE SECURITIES
ADMINISTRATOR A REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS
NOT
AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”),
OR A
PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO MATERIALLY
SIMILAR PROVISIONS OF APPLICABLE FEDERAL, STATE OR LOCAL LAW (“SIMILAR
LAW”)
OR A
PERSON INVESTING ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN. IN THE EVENT
THAT SUCH REPRESENTATION IS VIOLATED, OR ANY ATTEMPT IS MADE TO TRANSFER TO
A
PLAN OR ARRANGEMENT SUBJECT TO SECTION 406 OF ERISA, A PLAN SUBJECT TO
SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO SIMILAR LAW, OR A PERSON
ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS OF ANY
SUCH
PLAN OR ARRANGEMENT, SUCH ATTEMPTED TRANSFER OR ACQUISITION SHALL BE VOID AND
OF
NO EFFECT.]
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Certificate
No.
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:
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[R]
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|
Cut-off
Date
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:
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[
]
|
|
First
Distribution Date
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:
|
[
]
|
|
Percentage
Interest of this Certificate
|
:
|
[ ]
|
|
CUSIP
|
:
|
[
]
|
|
ISN
|
:
|
[
]
|
EXHIBIT
C-1
STRUCTURED
ASSET SECURITIES CORPORATION
Structured
Asset Securities Corporation Trust [ ]
Mortgage
Pass-Through Certificates, Series [ ]
Class
[R]
evidencing
a percentage interest in the distributions allocable to the Certificates of
the
above-referenced Class.
Distributions
in respect of this Certificate are distributable monthly as set forth herein.
This Class [R] Certificate has no Certificate Balance and is not entitled
to distributions in respect of principal or interest. This Certificate does
not
evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Trustee or any other party to the Agreement referred to below
or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or
instrumentality.
This
certifies that [ ] is the registered owner of the Percentage
Interest specified above of any monthly distributions due to the Class [R]
Certificates pursuant to a Pooling and Servicing Agreement dated as of the
Cut-off Date specified above (the “Agreement”)
among
Structured Asset Securities Corporation, as depositor (the “Depositor”),
[ ]
as servicer, [ ], as mortgage loan seller,
[ ], as master servicer, (in such capacity, the “Master
Servicer”)
securities administrator (in such capacity, the “Securities
Administrator”)
and
custodian and
[ ],
as trustee (the “Trustee”).
To
the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.
Any
distribution of the proceeds of any remaining assets of the Trust will be made
only upon presentment and surrender of this Class [R] Certificate at the
offices designated by the Securities Administrator for such purpose, or such
other location specified in the notice to Certificateholders.
No
transfer of a Class [R] Certificate shall be made unless the Securities
Administrator shall have received a representation letter from the transferee
of
such Certificate, acceptable to and in form and substance satisfactory to the
Securities Administrator, to the effect that such transferee is not an employee
benefit plan or arrangement subject to Section 406 of ERISA, a plan or
arrangement subject to Section 4975 of the Code or a plan subject to
Similar Law, or a person acting on behalf of any such plan or arrangement nor
using the assets of any such plan or arrangement to effect such transfer, which
representation letter shall not be an expense of the Trustee, the Securities
Administrator, the Depositor, the Master Servicer or the Trust Fund. In the
event that such representation is violated, or any attempt is made to transfer
to a plan or arrangement subject to Section 406 of ERISA or a plan subject
to Section 4975 of the Code or a plan subject to Similar Law, or a person
acting on behalf of any such plan or arrangement or using the assets of any
such
plan or arrangement, such attempted transfer or acquisition shall be void and
of
no effect.
EXHIBIT
C-2
Each
Holder of this Class [R] Certificate shall be deemed by the acceptance or
acquisition an Ownership Interest in this Class [R] Certificate to have
agreed to be bound by the following provisions, and the rights of each Person
acquiring any Ownership Interest in this Class [R] Certificate are
expressly subject to the following provisions: (i) each Person holding or
acquiring any Ownership Interest in this Class [R] Certificate shall be a
Permitted Transferee and shall promptly notify the Securities Administrator
of
any change or impending change in its status as a Permitted Transferee,
(ii) no Ownership Interest in this Class [R] Certificate may be
registered on the Closing Date or thereafter transferred, and the Securities
Administrator shall not register the Transfer of this Certificate unless, in
addition to the certificates required to be delivered to the Securities
Administrator under Section 5.02(b) of the Agreement, the Securities
Administrator shall have been furnished with a Transfer Affidavit of the initial
owner or the proposed transferee in the form attached as Exhibit G to the
Agreement, (iii) each Person holding or acquiring any Ownership Interest in
this Class [R] Certificate shall agree (A) to obtain a Transfer
Affidavit from any other Person to whom such Person attempts to Transfer its
Ownership Interest this Class [R] Certificate, (B) to obtain a
Transfer Affidavit from any Person for whom such Person is acting as nominee,
trustee or agent in connection with any Transfer of this Class [R]
Certificate, (C) not to cause income with respect to the Class [R]
Certificate to be attributable to a foreign permanent establishment or fixed
base, within the meaning of an applicable income tax treaty, of such Person
or
any other U.S. Person and (D) not to Transfer the Ownership Interest in
this Class [R] Certificate or to cause the Transfer of the Ownership
Interest in this Class [R] Certificate to any other Person if it has actual
knowledge that such Person is a Non-Permitted Transferee and (iv) any
attempted or purported Transfer of the Ownership Interest in this Class [R]
Certificate in violation of the provisions herein shall be absolutely null
and
void and shall vest no rights in the purported Transferee.
Reference
is hereby made to the further provisions of this Certificate set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.
This
Certificate shall not be entitled to any benefit under the Agreement or be
valid
for any purpose unless manually authenticated by an authorized signatory of
the
Securities Administrator.
*
*
*
EXHIBIT
C-3
IN
WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
be
duly executed.
|
Dated:
|
|
|
[
],
|
|
|
not
in its individual capacity, but solely as
|
|
|
Securities
Administrator
|
|
|
By:
____________________________________
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|
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Authenticated:
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|
|
By:
__________________________________
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|
|
Authorized
Signatory of
|
|
|
[
],
|
|
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not
in its individual capacity,
|
|
|
but
solely as Securities Administrator
|
EXHIBIT
C-4
STRUCTURED
ASSET SECURITIES CORPORATION
Structured
Asset Securities Corporation Trust [ ]
Mortgage
Pass-Through Certificates
This
Certificate is one of a duly authorized issue of Certificates designated as
Structured Asset Securities Corporation Trust [ ] Mortgage
Pass-Through Certificates, of the Series specified on the face hereof (herein
collectively called the “Certificates”),
and
representing a beneficial ownership interest in the Trust Fund created by the
Agreement.
The
Certificateholder, by its acceptance of this Certificate, agrees that it will
look solely
to the
funds on deposit in the Distribution Account or Supplemental Interest Trust
Account for payment hereunder and that neither the Trustee nor the Securities
Administrator is liable to the Certificateholders for any amount payable under
this Certificate or the Agreement or, except as expressly provided in the
Agreement, subject to any liability under the Agreement.
This
Certificate does not purport to summarize the Agreement and reference is made
to
the Agreement for the interests, rights and limitations of rights, benefits,
obligations and duties evidenced thereby, and the rights, duties and immunities
of the Trustee.
Pursuant
to the terms of the Agreement, a distribution will be made on the [ ]
day of each month or, if such day is not a Business Day, the Business Day
immediately following (the “Distribution
Date”),
commencing on the first Distribution Date specified on the face hereof, to
the
Person in whose name this Certificate is registered at the close of business
on
the applicable Record Date in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to Holders of Certificates of the class to which this Certificate belongs on
such Distribution Date pursuant to the Agreement. The Record Date applicable
to
each Distribution Date is the last Business Day of the month next preceding
the
month of such Distribution Date.
Distributions
on this Certificate shall be made by wire transfer of immediately available
funds to the account of the Holder hereof at a bank or other entity having
appropriate facilities therefor, if such Certificateholder shall have so
notified the Securities Administrator in writing at least [ ]
Business Days prior to the related Record Date and such Certificateholder shall
satisfy the conditions to receive such form of payment set forth in the
Agreement, or, if not, by check mailed by first Class mail to the address of
such Certificateholder appearing in the Certificate Register. The final
distribution on each Certificate will be made in like manner, but only upon
presentment and surrender of such Certificate at the offices designated by
the
Securities Administrator for such purpose, or such other location specified
in
the notice to Certificateholders of such final distribution.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Trustee and
the rights of the Certificateholders under the Agreement at any time by the
parties to the Agreement with the consent of the Holders of Certificates
affected by such amendment evidencing the requisite Percentage Interest, as
provided in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders
of
this Certificate and of any Certificate issued upon the transfer hereof or
in
exchange therefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
EXHIBIT
C-5
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
of
the Securities Administrator upon surrender of this Certificate for registration
of transfer at the offices designated by the Securities Administrator for such
purposes, accompanied by a written instrument of transfer in form satisfactory
to the Securities Administrator duly executed by the holder hereof or such
holder’s attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations and evidencing the
same aggregate Percentage Interest in the Trust Fund will be issued to the
designated transferee or transferees.
The
Certificates are issuable only as registered Certificates without coupons in
denominations specified in the Agreement. As provided in the Agreement and
subject to certain limitations therein set forth, Certificates are exchangeable
for new Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.
No
service charge will be made for any such registration of transfer or exchange,
but the Securities Administrator may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection
therewith.
The
Trustee, the Depositor and the Securities Administrator and any agent of the
Trustee, the Depositor or the Securities Administrator may treat the Person
in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Trustee, the Depositor, the Securities Administrator nor any
such agent shall be affected by any notice to the contrary.
The
Master Servicer, upon the instruction of the Depositor, shall purchase the
Mortgage Loans and therefore cause the termination of the Trust on the initial
Optional Termination Date, which is the Distribution Date following the month
in
which the aggregate Stated Principal Balance of the Mortgage Loans as of the
last day of the related Due Period is less than or equal to [ ]% of
the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date; provided,
however,
the
Master Servicer in its own right may exercise the option to purchase the
Mortgage Loans and thereby cause the termination of the Trust on the
Distribution Date following the month in which the aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
is
less than or equal to [ ]% of the aggregate Stated Principal Balance
of the Mortgage Loans as of the Cut-off Date, if the Depositor has not
previously provided instructions to the Master Servicer to exercise such option
on the Depositor’s behalf on such Distribution Date.
The
obligations and responsibilities created by the Agreement will terminate as
provided in Section 11.01 of the Agreement.
EXHIBIT
C-6
Any
term
used herein that is defined in the Agreement shall have the meaning assigned
in
the Agreement, and nothing herein shall be deemed inconsistent with that
meaning.
EXHIBIT
C-7
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
(Please
print or typewrite name and address including postal zip code of assignee)
the
Percentage Interest evidenced by the within Certificate and hereby authorizes
the transfer of registration of such Percentage Interest to assignee on the
Certificate Register of the Trust Fund.
I
(We)
further direct the Securities Administrator to issue a new Certificate of
a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:
___________________________________________________________________________________
Dated:
_______________________________________________
Signature
by or on behalf of assignor
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
Distributions
shall be made, by wire transfer or otherwise, in immediately available funds
to
_____________________________________________,
________________________________________________________________________________,
for the account of
__________________________________________________________________________________,
account number __________, or, if mailed by check, to
__________________________________________________. Applicable statements
should
be mailed to ___________________________________________________,
_______________________________________________________________________________________
This
information is provided by ___________________________________, the assignee
named above, or _____________________________, as its agent.
EXHIBIT
C-8
EXHIBIT
D
[SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS AN INTEREST
IN
A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)
AND
CERTAIN OTHER ASSETS.
NEITHER
THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
TRANSFEROR DELIVERS TO THE SECURITIES ADMINISTRATOR A TRANSFEROR LETTER IN
THE
FORM OF EXHIBIT H TO THE AGREEMENT REFERRED TO HEREIN AND EITHER
(I) THE SECURITIES ADMINISTRATOR RECEIVES A RULE 144A LETTER IN THE FORM OF
EXHIBIT I TO THE AGREEMENT REFERRED TO HEREIN OR (II) THE SECURITIES
ADMINISTRATOR RECEIVES AN OPINION OF COUNSEL, DELIVERED AT THE EXPENSE OF THE
TRANSFEROR, THAT SUCH TRANSFER MAY BE MADE WITHOUT REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED.
NEITHER
THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR EITHER A REPRESENTATION
LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED (“ERISA”),
OR A
PLAN SUBJECT TO SECTION 4975 OF THE CODE, OR A PLAN SUBJECT TO APPLICABLE
FEDERAL, STATE OR LOCAL LAW (“SIMILAR
LAW”)
MATERIALLY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE OR A PERSON
INVESTING ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN, OR, IF SUCH
CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING UNDERWRITING AND THE
TRANSFEREE IS AN INSURANCE COMPANY, A REPRESENTATION LETTER THAT IT IS USING
THE
ASSETS OF ITS GENERAL ACCOUNT AND THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE COVERED UNDER SECTIONS I AND III OF PROHIBITED TRANSACTION
CLASS EXEMPTION 95-60 OR AN OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES
ADMINISTRATOR, TO THE EFFECT THAT THE PURCHASE OR HOLDING OF THIS CERTIFICATE
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION WITHIN
THE
MEANING OF ERISA, SECTION 4975 OF THE CODE OR SIMILAR LAW AND WILL NOT SUBJECT
THE TRUSTEE, THE DEPOSITOR, THE SECURITIES ADMINISTRATOR, THE MASTER SERVICER
OR
THE SERVICER TO ANY OBLIGATION IN ADDITION TO THOSE EXPRESSLY UNDERTAKEN IN
THE
AGREEMENT OR TO ANY LIABILITY. NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY
HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN
EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF ERISA, SECTION 4975 OF THE CODE
OR
SIMILAR LAW WITHOUT THE REPRESENTATION LETTER OR OPINION OF COUNSEL SATISFACTORY
TO THE SECURITIES ADMINISTRATOR AS DESCRIBED ABOVE SHALL BE VOID AND OF NO
EFFECT.]
EXHIBIT
D-1
|
Certificate
No.
|
:
|
[X]
|
|
Cut-off
Date
|
:
|
[ ]
|
|
First
Distribution Date
|
:
|
[ ]
|
|
Percentage
Interest of this Certificate
|
:
|
[___]%
|
|
CUSIP
|
:
|
[
]
|
|
ISIN
|
:
|
[
]
|
EXHIBIT
D-2
STRUCTURED
ASSET SECURITIES CORPORATION
Structured
Asset Securities Corporation Trust [ ]
Mortgage
Pass-Through Certificates, Series [ ]
Class
[X]
evidencing
a percentage interest in the distributions allocable to the Certificates of
the
above-referenced Class.
Distributions
in respect of this Certificate are distributable monthly as set forth herein.
This Certificate does not evidence an obligation of, or an interest in, and
is
not guaranteed by the Depositor, the Trustee or any other party to the Agreement
referred to below or any of their respective affiliates. Neither this
Certificate nor the Mortgage Loans are guaranteed or insured by any governmental
agency or instrumentality.
This
certifies that [____________________] is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the denomination
of
this Certificate by the aggregate of the denominations of all Certificates
of
the Class to which this Certificate belongs) in certain monthly distributions
pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date
specified above (the “Agreement”)
among
Structured Asset Securities Corporation, as depositor (the “Depositor”),
[ ],
as servicer,
[ ],
as mortgage loan seller,
[ ],
as master servicer, (in such capacity, the “Master
Servicer”)
securities administrator (in such capacity, the “Securities
Administrator”)
and
custodian and
[ ],
as trustee (the “Trustee”).
To
the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.
This
Certificate does not have a Certificate Balance or an Interest Rate and will
be
entitled to distributions only to the extent set forth in the Agreement. In
addition, any distribution of the proceeds of any remaining assets of the Trust
will be made only upon presentment and surrender of this Certificate at the
offices designated by the Securities Administrator for such purpose, or such
other location specified in the notice to Certificateholders.
No
transfer of a Certificate of this Class shall be made unless such disposition
is
exempt from the registration requirements of the Securities Act of 1933, as
amended (the “1933 Act”),
and
any applicable state securities laws or is made in accordance with the 1933
Act
and such laws. In the event of any such transfer, the Securities Administrator
shall require the transferor to execute a transferor certificate (in
substantially the form attached to the Agreement) and deliver either (i) a
Rule 144A Letter, in either case substantially in the form attached to the
Agreement, or (ii) a written Opinion of Counsel to the Securities
Administrator that such transfer may be made pursuant to an exemption,
describing the applicable exemption and the basis therefor, from the 1933 Act
or
is being made pursuant to the 1933 Act, which Opinion of Counsel shall be an
expense of the transferor.
EXHIBIT
D-3
No
transfer of a Certificate of this Class shall be made unless the Securities
Administrator shall have received either (i) a representation letter from
the transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Securities Administrator, to the effect that such transferee
is not an employee benefit plan subject to Section 406 of ERISA or
Section 4975 of the Code or any materially similar provisions of applicable
Federal, state or local law (“Similar
Law”)
or a
person acting on behalf of or investing plan assets of any such plan, which
representation letter shall not be an expense of the Securities Administrator,
or (ii) if such Certificate has been the subject of an ERISA-Qualifying
Underwriting and the transferee is an insurance company, a representation letter
that it is purchasing such Certificates with the assets of its general account
and that the purchase and holding of such Certificates are covered under
Sections I and III of PTCE 95-60, or (iii) in the case of a Certificate
presented for registration in the name of an employee benefit plan subject
to
ERISA, or a plan or arrangement subject to Section 4975 of the Code (or
comparable provisions of any subsequent enactments) or a plan subject to Similar
Law, or a trustee of any such plan or any other person acting on behalf of
any
such plan or arrangement or using such plan’s or arrangement’s assets, an
Opinion of Counsel satisfactory to the Securities Administrator, which Opinion
of Counsel shall not be an expense of the Trustee, the Servicer, the Securities
Administrator or the Trust Fund, addressed to the Securities Administrator,
to
the effect that the purchase or holding of such Certificate will not constitute
or result in a non-exempt prohibited transaction within the meaning of ERISA,
Section 4975 of the Code or any Similar Law and will not subject the
Depositor, the Securities Administrator or the Servicer to any obligation in
addition to those expressly undertaken in the Agreement or to any
liability.
Reference
is hereby made to the further provisions of this Certificate set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.
This
Certificate shall not be entitled to any benefit under the Agreement or be
valid
for any purpose unless manually authenticated by an authorized signatory of
the
Securities Administrator.
*
*
*
EXHIBIT
D-4
IN
WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
be
duly executed.
|
Dated:
|
|
|
[
],
|
|
|
not
in its individual capacity, but solely as
|
|
|
Securities
Administrator
|
|
|
By:
____________________________________
|
|
|
Authenticated:
|
|
|
By:
__________________________________
|
|
|
Authorized
Signatory of
|
|
|
[
],
|
|
|
not
in its individual capacity,
|
|
|
but
solely as Securities Administrator
|
EXHIBIT
D-5
STRUCTURED
ASSET SECURITIES CORPORATION
Structured
Asset Securities Corporation Trust [ ]
Mortgage
Pass-Through Certificates
This
Certificate is one of a duly authorized issue of Certificates designated as
Structured Asset Securities Corporation Trust [ ] Mortgage
Pass-Through Certificates, of the Series specified on the face hereof (herein
collectively called the “Certificates”),
and
representing a beneficial ownership interest in the Trust Fund created by the
Agreement.
The
Certificateholder, by its acceptance of this Certificate, agrees that it will
look solely
to the
funds on deposit in the Distribution Account or Supplemental Interest Trust
Account for payment hereunder and that neither the Trustee nor the Securities
Administrator is liable to the Certificateholders for any amount payable under
this Certificate or the Agreement or, except as expressly provided in the
Agreement, subject to any liability under the Agreement.
This
Certificate does not purport to summarize the Agreement and reference is made
to
the Agreement for the interests, rights and limitations of rights, benefits,
obligations and duties evidenced thereby, and the rights, duties and immunities
of the Trustee.
Pursuant
to the terms of the Agreement, a distribution will be made on the
[ ] day of each month or, if such [ ] day is
not a Business Day, the Business Day immediately following (the “Distribution
Date”),
commencing on the first Distribution Date specified on the face hereof, to
the
Person in whose name this Certificate is registered at the close of business
on
the applicable Record Date in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to Holders of Certificates of the class to which this Certificate belongs on
such Distribution Date pursuant to the Agreement. The Record Date applicable
to
each Distribution Date is the last Business Day of the month next preceding
the
month of such Distribution Date.
Distributions
on this Certificate shall be made by wire transfer of immediately available
funds to the account of the Holder hereof at a bank or other entity having
appropriate facilities therefor, if such Certificateholder shall have so
notified the Securities Administrator in writing at least five Business Days
prior to the related Record Date and such Certificateholder shall satisfy the
conditions to receive such form of payment set forth in the Agreement, or,
if
not, by check mailed by first Class mail to the address of such
Certificateholder appearing in the Certificate Register. The final distribution
on each Certificate will be made in like manner, but only upon presentment
and
surrender of such Certificate at the offices designated by the Securities
Administrator for such purposes or such other location specified in the notice
to Certificateholders of such final distribution.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Trustee and
the rights of the Certificateholders under the Agreement at any time by the
parties to the Agreement with the consent of the Holders of Certificates
affected by such amendment evidencing the requisite Percentage Interest, as
provided in the Agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders
of
this Certificate and of any Certificate issued upon the transfer hereof or
in
exchange therefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
EXHIBIT
D-6
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
of
the Securities Administrator upon surrender of this Certificate for registration
of transfer at the offices designated by the Securities Administrator for such
purposes, accompanied by a written instrument of transfer in form satisfactory
to the Securities Administrator duly executed by the holder hereof or such
holder’s attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations and evidencing the
same aggregate Percentage Interest in the Trust Fund will be issued to the
designated transferee or transferees.
The
Certificates are issuable only as registered Certificates without coupons in
denominations specified in the Agreement. As provided in the Agreement and
subject to certain limitations therein set forth, Certificates are exchangeable
for new Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.
No
service charge will be made for any such registration of transfer or exchange,
but the Securities Administrator may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection
therewith.
The
Trustee, the Depositor and the Securities Administrator and any agent of the
Trustee, the Depositor or the Securities Administrator may treat the Person
in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Trustee, the Depositor, the Securities Administrator nor any
such agent shall be affected by any notice to the contrary.
The
Master Servicer, upon the instruction of the Depositor, shall purchase the
Mortgage Loans and therefore cause the termination of the Trust on the initial
Optional Termination Date, which is the Distribution Date following the month
in
which the aggregate Stated Principal Balance of the Mortgage Loans as of the
last day of the related Due Period is less than or equal to
[ ]% of the aggregate Stated Principal Balance of the Mortgage
Loans as of the Cut-off Date; provided,
however,
the
Master Servicer in its own right may exercise the option to purchase the
Mortgage Loans and thereby cause the termination of the Trust on the
Distribution Date following the month in which the aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
is
less than or equal to [ ]% of the aggregate Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date, if the Depositor has
not
previously provided instructions to the Master Servicer to exercise such option
on the Depositor’s behalf on such Distribution Date.
The
obligations and responsibilities created by the Agreement will terminate as
provided in Section 11.01 of the Agreement.
EXHIBIT
D-7
Any
term
used herein that is defined in the Agreement shall have the meaning assigned
in
the Agreement, and nothing herein shall be deemed inconsistent with that
meaning
EXHIBIT
D-8
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
(Please
print or typewrite name and address including postal zip code of assignee)
the
Percentage Interest evidenced by the within Certificate and hereby authorizes
the transfer of registration of such Percentage Interest to assignee on the
Certificate Register of the Trust Fund.
I
(We)
further direct the Securities Administrator to issue a new Certificate of
a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:
___________________________________________________________________________________
Dated:
_______________________________________________
Signature
by or on behalf of assignor
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
Distributions
shall be made, by wire transfer or otherwise, in immediately available funds
to
_____________________________________________,
________________________________________________________________________________,
for the account of
__________________________________________________________________________________,
account number __________, or, if mailed by check, to
__________________________________________________. Applicable statements
should
be mailed to ___________________________________________________,
_______________________________________________________________________________________
This
information is provided by ___________________________________, the assignee
named above, or _____________________________, as its agent.
EXHIBIT
D-9
EXHIBIT
E
FORM
OF
INITIAL CERTIFICATION OF CUSTODIAN
[date]
|
Structured
Asset Securities Corporation
000
Xxxxxxx Xxxxxx, 0xx Xxxxx
Xxx
Xxxx, Xxx Xxxx 00000
|
|
[Master
Servicer] [Securities Administrator]
|
|
[Trustee]
|
|
Re:
|
[ ],
Series
[ ]
|
Ladies
and Gentlemen:
In
accordance with Section 2.02 of the Pooling and Servicing Agreement (the
“Pooling
and Servicing Agreement”)
dated
as of [ ], 20[ ] among Structured Asset Securities
Corporation, as depositor, [ ], as servicer,
[ ],
as mortgage loan seller, [ ], as master servicer, securities
administrator and custodian, and [ ], as trustee,, for each
Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
Loan
listed in the attached schedule), it has received:
(i) the
original Credit Line Agreement, endorsed as provided in the following form:
“Pay
to the order of ________, without recourse”; and
(ii) a
duly
executed assignment of the Mortgage (which may be included in a blanket
assignment or assignments).
Based
on
its review and examination and only as to the foregoing documents, such
documents appear regular on their face and related to such Mortgage
Loan.
The
Custodian has made no independent examination of any documents contained in
each
Mortgage File beyond the review specifically required in the Pooling and
Servicing Agreement. The Custodian makes no representations as to: (i) the
validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule, or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage
Loan.
Capitalized
words and phrases used herein shall have the respective meanings assigned to
them in the Pooling and Servicing Agreement.
EXHIBIT
E-1
|
[
], as Custodian
|
||
| |
|
|
| By: | ______________________________________________________ | |
| Name: _________________________________________________ | ||
| Title: __________________________________________________ | ||
EXHIBIT
E-2
EXHIBIT F
FORM
OF
DOCUMENT CERTIFICATION
AND
EXCEPTION REPORT OF CUSTODIAN
______,
20___
|
Structured
Asset Securities Corporation
000
Xxxxxxx Xxxxxx, 0xx Xxxxx
Xxx
Xxxx, Xxx Xxxx 00000
|
[Trustee]
|
|
[Master
Servicer] [Securities Administrator]
|
|
|
[Servicer]
|
|
|
[Mortgage
Loan Seller]
|
|
Re:
|
[ ],
Series
[ ]
|
Ladies
and Gentlemen:
In
accordance with Section 2.02 of the Pooling and Servicing Agreement (the
“Pooling
and Servicing Agreement”)
dated
as of [ ], 20[ ] among Structured Asset Securities
Corporation, as depositor, [ ], as servicer,
[ ],
as mortgage loan seller,
[ ],
as master servicer, securities administrator and custodian, and
[ ], as trustee, the undersigned, as Custodian, hereby
certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule
(other than any Mortgage Loan paid in full or listed on the attached Document
Exception Report) it has received:
(i) The
original Credit Line Agreement, endorsed in the form provided in
Section 2.01 of the Pooling and Servicing Agreement, with all intervening
endorsements showing a complete chain of endorsement from the originator to
the
last endorsee.
(ii) The
original recorded Mortgage.
(iii) A
duly
executed assignment of the Mortgage in the form provided in Section 2.01 of
the Pooling and Servicing Agreement; or, if the Mortgage Loan Seller has
certified or the Custodian otherwise knows that the related Mortgage has not
been returned from the applicable recording office, a copy of the assignment
of
the Mortgage (excluding information to be provided by the recording
office).
(iv) The
original or duplicate original recorded assignment or assignments of the
Mortgage showing a complete chain of assignment from the originator to the
last
endorsee.
(v) The
original or duplicate original lender’s title policy and all riders thereto or,
any one of an original title binder, an original preliminary title report or
an
original title commitment, or a copy thereof certified by the title
company.
EXHIBIT
F-1
Based
on
its review and examination and only as to the foregoing documents, (a) such
documents appear regular on their face and related to such Mortgage Loan, and
(b) the information set forth in items (1), (2), (3), (15), (18) and
(22) of the Data Tape Information accurately reflects information set forth
in
the Custodial File.
The
Custodian has made no independent examination of any documents contained in
each
Mortgage File beyond the review of the Custodial File specifically required
in
the Pooling and Servicing Agreement. The Custodian makes no representation
as
to: (i) the validity, legality, sufficiency, enforceability or genuineness
of any of the documents contained in each Mortgage File of any of the Mortgage
Loans identified on the Mortgage Loan Schedule, or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.
Notwithstanding anything herein to the contrary, the Custodian has made no
determination and makes no representations as to whether (i) any
endorsement is sufficient to transfer all right, title and interest of the
party
so endorsing, as noteholder or assignee thereof, in and to that Credit Line
Agreement or (ii) any assignment is in recordable form or sufficient to
effect the assignment of and transfer to the assignee thereof, under the
Mortgage to which the assignment relates.
Capitalized
words and phrases used herein shall have the respective meanings assigned to
them in the Pooling and Servicing Agreement.
|
[
], as Custodian
|
||
|
By:
|
______________________________________________________
|
|
|
Name:
_________________________________________________
|
||
|
Title:
__________________________________________________
|
||
EXHIBIT
F-2
EXHIBIT
G
FORM
OF
RESIDUAL TRANSFER AFFIDAVIT
Structured
Asset Securities Corporation Trust [ ]
Mortgage
Pass-Through Certificates, Series [ ]
|
STATE
OF
|
)
|
|
|
)
ss.:
|
|
|
|
COUNTY
OF
|
)
|
The
undersigned, being first duly sworn, deposes and says as follows:
1. The
undersigned is an officer of ___________________, the proposed Transferee of
an
Ownership Interest in a Class R Certificate (the “Certificate”)
issued
pursuant to the Pooling and Servicing Agreement (the “Agreement”),
relating to the above-referenced Series, dated as of [ ],
20[ ] among Structured Asset Securities Corporation, as depositor,
[ ],
as servicer, [ ], as mortgage loan seller,
[ ], as master servicer, securities administrator and
custodian, and [ ], as trustee. Capitalized terms used, but not
defined herein, shall have the meanings ascribed to such terms in the Agreement.
The Transferee has authorized the undersigned to make this affidavit on behalf
of the Transferee for the benefit of the Depositor, the Securities Administrator
and the Trustee.
2. The
Transferee is, as of the date hereof, and will be, as of the date of the
Transfer, a Permitted Transferee. The Transferee is acquiring its Ownership
Interest in the Certificate for its own account. The Transferee has no knowledge
that any such affidavit is false.
3. The
Transferee has been advised of, and understands that (i) a tax will be
imposed on Transfers of the Certificate to Persons that are Non-Permitted
Transferees; (ii) such tax will be imposed on the transferor, or, if such
Transfer is through an agent (which includes a broker, nominee or middleman)
for
a Person that is a Non-Permitted Transferee, on the agent; and (iii) the
Person otherwise liable for the tax shall be relieved of liability for the
tax
if the subsequent Transferee furnished to such Person an affidavit that such
subsequent Transferee is a Permitted Transferee and, at the time of Transfer,
such Person does not have actual knowledge that the affidavit is
false.
4. The
Transferee has been advised of, and understands that a tax will be imposed
on a
“pass-through entity” holding the Certificate if at any time during the taxable
year of the pass-through entity a Person that is a Non-Permitted Transferee
is
the record holder of an interest in such entity. The Transferee understands
that
such tax will not be imposed for any period with respect to which the record
holder furnishes to the pass-through entity an affidavit that such record holder
is a Permitted Transferee and the pass-through entity does not have actual
knowledge that such affidavit is false. (For this purpose, a “pass-through
entity” includes a regulated investment company, a real estate investment trust
or common trust fund, a partnership, trust or estate, and certain cooperatives
and, except as may be provided in Treasury Regulations, persons holding
interests in pass-through entities as a nominee for another
Person.)
EXHIBIT
G-1
5. The
Transferee has reviewed the provisions of Section 5.02(c) of the Agreement
and understands the legal consequences of the acquisition of an Ownership
Interest in the Certificate including, without limitation, the restrictions
on
subsequent Transfers and the provisions regarding voiding the Transfer and
mandatory sales. The Transferee expressly agrees to be bound by and to abide
by
the provisions of Section 5.02(c) of the Agreement and the restrictions
noted on the face of the Certificate. The Transferee understands and agrees
that
any breach of any of the representations included herein shall render the
Transfer to the Transferee contemplated hereby null and void.
6. The
Transferee agrees to require a Transfer Affidavit from any Person to whom the
Transferee attempts to Transfer its Ownership Interest in the Certificate,
and
in connection with any Transfer by a Person for whom the Transferee is acting
as
nominee, trustee or agent, and the Transferee will not Transfer its Ownership
Interest or cause any Ownership Interest to be Transferred to any Person that
the Transferee knows is a Non-Permitted Transferee. In connection with any
such
Transfer by the Transferee, the Transferee agrees to deliver to the Securities
Administrator a certificate substantially in the form set forth as
Exhibit H to the Agreement (a “Transferor
Certificate”)
to the
effect that, among other things, such Transferee has no actual knowledge that
the Person to which the Transfer is to be made is a Non-Permitted
Transferee.
7. The
Transferee does not have the intention to impede the assessment or collection
of
any tax legally required to be paid with respect to the Certificate. The
Transferee has historically paid its debts as they have come due and intends
to
pay its debts as they come due in the future. The Transferee intends to pay
all
taxes due with respect to the Certificate as they become due.
8. The
Transferee’s taxpayer identification number is __________.
9. The
Transferee is not a Disqualified Non-U.S. Person as defined in the
Agreement.
10. The
Transferee is aware that the Certificate may be a “noneconomic residual
interest” within the meaning of proposed Treasury regulations promulgated
pursuant to the Code and that the transferor of a noneconomic residual interest
will remain liable for any taxes due with respect to the income on such residual
interest, unless no significant purpose of the transfer was to impede the
assessment or collection of tax.
11. The
Transferee will not cause income from the Residual Certificate to be
attributable to a foreign permanent establishment or fixed base, within the
meaning of an applicable income tax treaty, of the Transferee or any other
U.S.
Person.
12. Check
the
applicable paragraph:
¨ The
present value of the anticipated tax liabilities associated with holding the
Certificate, as applicable, does not exceed the sum of:
EXHIBIT
G-2
(i) the
present value of any consideration given to the Transferee to acquire such
Certificate;
(ii) the
present value of the expected future distributions on such Certificate;
and
(iii) the
present value of the anticipated tax savings associated with holding such
Certificate as the related REMIC generates losses.
For
purposes of this calculation, (i) the Transferee is assumed to pay tax at
the highest rate currently specified in Section 11(b) of the Code (but the
tax rate in Section 55(b)(1)(B) of the Code may be used in lieu of the highest
rate specified in Section 11(b) of the Code if the Transferee has been
subject to the alternative minimum tax under Section 55 of the Code in the
preceding two years and will compute its taxable income in the current taxable
year using the alternative minimum tax rate) and (ii) present values are
computed using a discount rate equal to the short-term Federal rate prescribed
by Section 1274(d) of the Code for the month of the transfer and the
compounding period used by the Transferee.
¨ The
transfer of the Certificate complies with U.S. Treasury Regulations Sections
1.860E-1(c)(5) and (6) and, accordingly,
(i) the
Transferee is an “eligible corporation,” as defined in U.S. Treasury Regulations
Section 1.860E-1(c)(6)(i), as to which income from the Certificate will only
be
taxed in the United States;
(ii) at
the
time of the transfer, and at the close of the Transferee’s two fiscal years
preceding the year of the transfer, the Transferee had gross assets for
financial reporting purposes (excluding any obligation of a person related
to
the Transferee within the meaning of U.S. Treasury Regulations Section
1.860E-1(c)(6)(ii)) in excess of $100 million and net assets in excess of
$10 million;
(iii) the
Transferee will transfer the Certificate only to another “eligible corporation,”
as defined in U.S. Treasury Regulations Section 1.860E-1(c)(6)(i), in a
transaction that satisfies the requirements of Sections 1.860E-1(c)(4)(i),
(ii)
and (iii) and Section 1.860E-1(c)(5) of the U.S. Treasury Regulations;
and
(iv) the
Transferee determined the consideration paid to it to acquire the Certificate
based on reasonable market assumptions (including, but not limited to, borrowing
and investment rates, prepayment and loss assumptions, expense and reinvestment
assumptions, tax rates and other factors specific to the Transferee) that it
has
determined in good faith.
¨ None
of
the above.
13. The
Transferee is not an employee benefit plan that is subject to Title I of
ERISA or a plan that is subject to Section 4975 of the Code or a plan
subject to any Federal, state or local law that is substantially similar to
Title I of ERISA or Section 4975 of the Code, and the Transferee is
not acting on behalf of or investing plan assets of such a plan.
EXHIBIT
G-3
*
*
*
IN
WITNESS WHEREOF, the Transferee has caused this instrument to be executed on
its
behalf, pursuant to authority of its Board of Directors, by its duly authorized
officer and its corporate seal to be hereunto affixed, duly attested, this
___
day of _______, 20__.
| ___________________________________________________ Print
Name of Transferee
|
||
| |
|
|
| By: |
_______________________________________________
|
|
|
Name:
__________________________________________
|
||
| Title: ___________________________________________ | ||
[Corporate
Seal]
ATTEST:
__________________________________________
[Assistant]
Secretary
Personally
appeared before me the above-named __________, known or proved to me to be
the
same person who executed the foregoing instrument and to be the ___________
of
the Transferee, and acknowledged that he executed the same as his free act
and
deed and the free act and deed of the Transferee.
Subscribed
and sworn before me this ___ day of _______, 20__.
|
___________________________________________________
NOTARY
PUBLIC
|
||
| |
|
|
|
My
Commission expires the __ day
|
||
|
of
_________, 20__
|
||
EXHIBIT
G-4
EXHIBIT
H
FORM
OF
TRANSFEROR CERTIFICATE
__________,
20__
Structured
Asset Securities Corporation
000
Xxxxxxx Xxxxxx, 0xx Xxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Attention:
Mortgage Finance
[Securities
Administrator]
Re:
Structured
Asset Securities Corporation Trust [ ] Mortgage Pass-Through
Certificates, Series [ ], Class [__]
Ladies
and Gentlemen:
In
connection with our disposition of the above Certificates we certify that
(a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the “Act”),
and
are being disposed by us in a transaction that is exempt from the registration
requirements of the Act, (b) we have not offered or sold any Certificates
to, or solicited offers to buy any Certificates from, any person, or otherwise
approached or negotiated with any person with respect thereto, in a manner
that
would be deemed, or taken any other action which would result in, a violation
of
Section 5 of the Act and (c) to the extent we are disposing of a
Residual Certificate, (i) we have no knowledge the Transferee is a
Non-Permitted Transferee, (ii) after conducting a reasonable investigation
of the financial condition of the Transferee, we have no knowledge and no reason
to believe that the Transferee will not pay all taxes with respect to the
Residual Certificates as they become due and (iii) we have no reason to
believe that the statements made in paragraphs 7, 10 and 11 of the
Transferee’s Residual Transfer Affidavit are false.
EXHIBIT
H-1
|
Very
truly yours,
|
||
| |
|
|
| _______________________________________________ Print
Name of Transferor
|
||
|
By:
____________________________________________
Authorized
Officer
|
||
EXHIBIT
H-2
EXHIBIT
I
FORM
OF
RULE 144A LETTER
____________,
20__
Structured
Asset Securities Corporation
000
Xxxxxxx Xxxxxx, 0xx Xxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Attention:
Mortgage Finance
[Securities
Administrator]
|
Re:
|
Structured
Asset Securities Corporation Trust [ ]
|
Mortgage
Pass-Through Certificates, Series [ ], Class [__]
Ladies
and Gentlemen:
In
connection with our acquisition of the above Certificates we certify that
(a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the “Act”),
or
any state securities laws and are being transferred to us in a transaction
that
is exempt from the registration requirements of the Act and any such laws,
(b) we have such knowledge and experience in financial and business matters
that we are capable of evaluating the merits and risks of investments in the
Certificates, (c) we have had the opportunity to ask questions of and
receive answers from the Depositor concerning the purchase of the Certificates
and all matters relating thereto or any additional information deemed necessary
to our decision to purchase the Certificates, (d) either we are purchasing
a Class [ ] or Class [ ] Certificate or we are not an
employee benefit plan that is subject to Title I of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”),
or a
plan or arrangement that is subject to Section 4975 of the Internal Revenue
Code of 1986, as amended, or a plan subject to materially similar provisions
of
applicable federal, state or local law, nor are we acting on behalf of any
such
plan or arrangement nor using the assets of any such plan or arrangement to
effect such acquisition or, with respect Class [X] Certificate, such
Certificate has been the subject of an ERISA-Qualifying Underwriting and the
purchaser is an insurance company that is purchasing this certificate with
funds
contained in an “insurance company general account” (as such term is defined in
Section V(e) of Prohibited Transaction Class Exemption (“PTCE”)
95-60)
and that the purchase and holding of such Certificates are covered under
Sections I and III of PTCE 95-60, (e) in the case of an
ERISA-Restricted Swap Certificate, either (i) we are not an employee benefit
plan that is subject to Title I of ERISA, or a plan or arrangement that is
subject to Section 4975 of the Internal Revenue Code of 1986, as amended,
nor a person acting on behalf of any such plan, nor are we using the assets
of
any such plan to effect such transfer or (ii) our acquisition and holding of
the
ERISA-Restricted Swap Certificate is eligible for exemptive relief under XXXX
00-00, XXXX 00-0, XXXX 91-38, PTCE 95-60 or PTCE 96-23, (f) we have not, nor
has
anyone acting on our behalf offered, transferred, pledged, sold or otherwise
disposed of the Certificates, any interest in the Certificates or any other
similar security to, or solicited any offer to buy or accept a transfer, pledge
or other disposition of the Certificates, any interest in the Certificates
or
any other similar security from, or otherwise approached or negotiated with
respect to the Certificates, any interest in the Certificates 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, that would constitute a distribution of the Certificates
under
the Securities Act or that would render the disposition of the Certificates
a
violation of Section 5 of the Securities Act or require registration
pursuant thereto, nor will act, nor has authorized or will authorize any person
to act, in such manner with respect to the Certificates, and (g) we are a
“qualified institutional buyer” as that term is defined in Rule 144A under
the Securities Act and have completed either of the forms of certification
to
that effect attached hereto as Annex 1 or Annex 2. We are aware that
the sale to us is being made in reliance on Rule 144A. We are acquiring the
Certificates for our own account or for resale pursuant to Rule 144A and
further, understand that such Certificates may be resold, pledged or transferred
only (i) to a person reasonably believed to be a qualified institutional
buyer that purchases for its own account or for the account of a qualified
institutional buyer to whom notice is given that the resale, pledge or transfer
is being made in reliance on Rule 144A, or (ii) pursuant to another
exemption from registration under the Securities Act.
EXHIBIT
I-1
ANNEX
1 TO EXHIBIT I
QUALIFIED
INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
[For
Transferees Other Than Registered Investment Companies]
The
undersigned (the “Buyer”)
hereby
certifies as follows to the parties listed in the Rule 144A Transferee
Certificate to which this certification relates with respect to the Certificates
described therein:
1. As
indicated below, the undersigned is the President, Chief Financial Officer,
Senior Vice President or other executive officer of the Buyer.
2. In
connection with purchases by the Buyer, the Buyer is a “qualified institutional
buyer” as that term is defined in Rule 144A under the Securities Act of
1933, as amended (“Rule 144A”),
because (i) the Buyer owned and/or invested on a discretionary basis
$________1
in
securities (except for the excluded securities referred to below) as of the
end
of the Buyer’s most recent fiscal year (such amount being calculated in
accordance with Rule 144A and (ii) the Buyer satisfies the criteria in
the category marked below.
|
____
|
Corporation,
etc.
The Buyer is a corporation (other than a bank, savings and loan
association or similar institution), Massachusetts or similar business
trust, partnership, or charitable organization described in
Section 501(c)(3) of the Internal Revenue Code of 1986, as
amended.
|
|
____
|
Bank.
The Buyer (a) is a national bank or banking institution organized
under the laws of any State, territory or the District of Columbia,
the
business of which is substantially confined to banking and is supervised
by the State or territorial banking commission or similar official
or is a
foreign bank or equivalent institution, and (b) has an audited net
worth of at least $25,000,000 as demonstrated in its latest annual
financial statements, a copy of which is attached
hereto.
|
|
____
|
Savings
and Loan.
The Buyer (a) is a savings and loan association, building and loan
association, cooperative bank, homestead association or similar
institution, which is supervised and examined by a State or Federal
authority having supervision over any such institutions or is a foreign
savings and loan association or equivalent institution and (b) has an
audited net worth of at least $25,000,000 as demonstrated in its
latest
annual financial statements, a copy of which is attached
hereto.
|
|
____
|
Broker-dealer.
The Buyer is a dealer registered pursuant to Section 15 of the
Securities Exchange Act of 1934.
|
EXHIBIT
I-2
|
____
|
Insurance
Company.
The Buyer is an insurance company whose primary and predominant business
activity is the writing of insurance or the reinsuring of risks
underwritten by insurance companies and which is subject to supervision
by
the insurance commissioner or a similar official or agency of a State,
territory or the District of
Columbia.
|
|
____
|
State
or Local Plan.
The Buyer is a plan established and maintained by a State, its political
subdivisions, or any agency or instrumentality of the State or its
political subdivisions, for the benefit of its
employees.
|
|
____
|
ERISA
Plan.
The Buyer is an employee benefit plan within the meaning of Title I
of the Employee Retirement Income Security Act of
1974.
|
|
____
|
Investment
Advisor.
The Buyer is an investment advisor registered under the Investment
Advisors Act of 1940.
|
|
____
|
Small
Business Investment Company.
Buyer is a small business investment company licensed by the U.S.
Small
Business Administration under Section 301(c) or (d) of the Small
Business
Investment Act of 1958.
|
|
____
|
Business
Development Company.
Buyer is a business development company as defined in Section 202(a)(22)
of the Investment Advisors Act of
1940.
|
3. The
term
“securities”
as
used
herein does
not include
(i) securities of issuers that are affiliated with the Buyer,
(ii) securities that are part of an unsold allotment to or subscription by
the Buyer, if the Buyer is a dealer, (iii) securities issued or guaranteed
by the U.S. or any instrumentality thereof, (iv) bank deposit notes and
certificates of deposit, (v) loan participations, (vi) repurchase
agreements, (vii) securities owned but subject to a repurchase agreement
and (viii) currency, interest rate and commodity swaps.
4. For
purposes of determining the aggregate amount of securities owned and/or invested
on a discretionary basis by the Buyer, the Buyer used the cost of such
securities to the Buyer and did not include any of the securities referred
to in
the preceding paragraph, except (i) where the Buyer reports its securities
holdings in its financial statements on the basis of their market value, and
(ii) no current information with respect to the cost of those securities
has been published. If clause (ii) in the preceding sentence applies, the
securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer’s direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer
is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.
5. The
Buyer
acknowledges that it is familiar with Rule 144A and understands that the
seller to it and other parties related to the Certificates are relying and
will
continue to rely on the statements made herein because one or more sales to
the
Buyer may be in reliance on Rule 144A.
EXHIBIT
I-3
6. Until
the
date of purchase of the Rule 144A Securities, the Buyer will notify each of
the parties to which this certification is made of any changes in the
information and conclusions herein. Until such notice is given, the Buyer’s
purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is
a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after
they
become available.
| ______________________________________________ Print
Name of Transferee
|
||
| |
|
|
| By: | __________________________________________ | |
|
Name:
_____________________________________
|
||
| Title: ______________________________________ | ||
|
Date:
______________________________________
|
||
EXHIBIT
I-4
ANNEX
2 TO EXHIBIT I
QUALIFIED
INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
[For
Transferees That Are Registered Investment Companies]
The
undersigned (the “Buyer”)
hereby
certifies as follows to the parties listed in the Rule 144A Transferee
Certificate to which this certification relates with respect to the Certificates
described therein:
1. As
indicated below, the undersigned is the President, Chief Financial Officer
or
Senior Vice President of the Buyer or, if the Buyer is a “qualified
institutional buyer” as that term is defined in Rule 144A under the
Securities Act of 1933, as amended (“Rule 144A”),
because Buyer is part of a Family of Investment Companies (as defined below),
is
such an officer of the Adviser.
2. In
connection with purchases by Buyer, the Buyer is a “qualified institutional
buyer” as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended, and (ii) as marked below, the Buyer alone, or the Buyer’s Family
of Investment Companies, owned at least $100,000,000 in securities (other than
the excluded securities referred to below) as of the end of the Buyer’s most
recent fiscal year. For purposes of determining the amount of securities owned
by the Buyer or the Buyer’s Family of Investment Companies, the cost of such
securities was used, except (i) where the Buyer or the Buyer’s Family of
Investment Companies reports its securities holdings in its financial statements
on the basis of their market value, and (ii) no current information with
respect to the cost of those securities has been published. If clause (ii)
in the preceding sentence applies, the securities may be valued at
market.
|
____
|
The
Buyer owned $_______ in securities (other than the excluded securities
referred to below) as of the end of the Buyer’s most recent fiscal year
(such amount being calculated in accordance with
Rule 144A).
|
|
____
|
The
Buyer is part of a Family of Investment Companies which owned in
the
aggregate $_______ in securities (other than the excluded securities
referred to below) as of the end of the Buyer’s most recent fiscal year
(such amount being calculated in accordance with
Rule 144A).
|
3. The
term
“Family
of Investment Companies”
as
used
herein means two or more registered investment companies (or series thereof)
that have the same investment adviser or investment advisers that are affiliated
(by virtue of being majority owned subsidiaries of the same parent or because
one investment adviser is a majority owned subsidiary of the
other).
4. The
term
“securities”
as
used
herein does not include (i) securities of issuers that are affiliated with
the Buyer or are part of the Buyer’s Family of Investment Companies,
(ii) securities issued or guaranteed by the U.S. or any instrumentality
thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements,
(vi) securities owned but subject to a repurchase agreement and
(vii) currency, interest rate and commodity swaps.
EXHIBIT
I-5
5. The
Buyer
is familiar with Rule 144A and understands that the parties listed in the
Rule 144A Transferee Certificate to which this certification relates are
relying and will continue to rely on the statements made herein because one
or
more sales to the Buyer will be in reliance on Rule 144A. In addition, the
Buyer will only purchase for the Buyer’s own account.
6. Until
the
date of purchase of the Certificates, the undersigned will notify the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates of any changes in the information and conclusions herein. Until such
notice is given, the Buyer’s purchase of the Certificates will constitute a
reaffirmation of this certification by the undersigned as of the date of such
purchase.
|
_______________________________________
Print Name of Transferee |
|
|
By:
____________________________________
|
|
|
Name:
|
|
|
Title:
|
|
|
IF
AN ADVISER:
|
|
|
_______________________________________ Print
Name of Buyer |
|
|
Date:
___________________________________
|
EXHIBIT
I-6
EXHIBIT
J
FORM
OF
REQUEST FOR RELEASE
(for
Custodian)
|
To:
|
[Trustee]
|
Attention:
[____________]
|
Re:
|
Pooling
and Servicing Agreement (the “Pooling and Servicing Agreement”) dated as
of [ ], 20[ ] among Structured Asset
Securities Corporation, as depositor, [ ], as servicer,
[ ], as mortgage loan seller, [ ], as
master servicer, securities administrator and custodian, and
[ ], as trustee
|
In
connection with the administration of the Mortgage Loans held by you as the
Custodian on behalf of the Certificateholders, we request the release, and
acknowledge receipt, of the (Custodial File/[specify documents]) for the
Mortgage Loan described below, for the reason indicated.
Mortgagor’s
Name, Address & Zip Code:
Mortgage
Loan Number:
Send
Custodial File to:
Delivery
Method (check one)
| ____1. |
Regular
mail
|
| ____2. |
Overnight
courier
(Tracking information:
)
|
If
neither box 1 nor 2 is checked, regular mail shall be assumed.
Reason
for Requesting Documents
(check
one)
| ____1. |
Mortgage
Loan
Paid in Full.
(The Servicer hereby certifies that all amounts received in connection
therewith have been credited to the Collection Account as provided
in the
Pooling and Servicing Agreement.)
|
| ____2. |
Mortgage
Loan Repurchase Pursuant to Subsection 2.03 of the Pooling and
Servicing
Agreement.
(The Servicer hereby certifies that the repurchase price has
been credited
to Collection Account as provided in the Pooling and Servicing
Agreement.)
|
| ____3. |
Mortgage
Loan Liquidated by _________________. (The Servicer hereby certifies
that
all proceeds of foreclosure, insurance, condemnation or other liquidation
have been finally received and credited to the Collection Account
pursuant
to the Pooling and Servicing
Agreement.)
|
EXHIBIT
J-1
| ____4. |
Mortgage
Loan in Foreclosure.
|
| ____5. |
Other
(explain).
________________________________________________
|
If
box 1,
2 or 3 above is checked, and if all or part of the Custodial File was previously
released to us, please release to us our previous request and receipt on file
with you, as well as any additional documents in your possession relating to
the
specified Mortgage Loan.
If
box 4
or 5 above is checked, upon our return of all of the above documents to you
as
the Trustee, please acknowledge your receipt by signing in the space indicated
below, and returning this form if requested by us.
|
[SERVICER]
|
|
|
By:
____________________________________
|
|
|
Name:
|
|
|
Title:
|
|
|
Date:
|
|
|
ACKNOWLEDGED
AND AGREED:
|
|
|
[MASTER
SERVICER]
|
|
|
By:
____________________________________
|
|
|
Name:
|
|
|
Title:
|
|
|
Date:
|
EXHIBIT
J-2
EXHIBIT
K
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 Depositor and
which shall be retained by the Servicer or delivered to and retained by the
Custodian:
(a) The
documents or instruments set forth as items (i) to (ix) in Section 2.01(b)
of the Pooling and Servicing Agreement.
(b) Residential
loan application.
(c) Mortgage
Loan closing statement.
(d) Verification
of employment and income.
(e) Verification
of acceptable evidence of source and amount of downpayment.
(f) Credit
report on Mortgagor.
(g) Residential
appraisal report.
(h) Photograph
of the Mortgaged Property.
(i) Survey
of
the Mortgaged Property.
(j) 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.
(k) All
required disclosure statements and statement of Mortgagor confirming receipt
thereof.
(l) If
available, termite report, structural engineer’s report, water potability and
septic certification.
(m) Sales
contract, if applicable.
(n) Hazard
insurance policy.
(o) Tax
receipts, insurance premium receipts, ledger sheets, payment history from date
of origination, 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.
EXHIBIT
K-1
(p) Amortization
schedule, if available.
(q) Payment
history for Mortgage Loans that have been closed for more than 90
days.
EXHIBIT
K-2
EXHIBIT
L
FORM
OF
XXXXXXXX-XXXXX CERTIFICATION TO BE
PROVIDED
BY MASTER SERVICER (OR OTHER
CERTIFICATION
PARTY) WITH FORM 10-K
Structured
Asset Securities Corporation Trust [
]
Mortgage
Pass-Through Certificates
Series
[ ]
This
Certification is being made pursuant to Section 3.24 and Section 8.12 of
the Pooling and Servicing Agreement (the “Pooling
and Servicing Agreement”)
relating to the above-referenced Series, among Structured Asset Securities
Corporation, as depositor, [
], as Servicer,
[ ], as Mortgage
Loan Seller, [ ], as
Master Servicer, Securities Administrator and Custodian, and
[ ],
as Trustee,. Capitalized terms used but not defined herein shall have the
meanings assigned in the Pooling and Servicing Agreement.
I,
[identify the certifying individual], certify that:
|
1.
|
I
have reviewed this annual report on Form 10-K (the “Annual
Report”),
and all reports on Form 8-K containing distribution date reports
(collectively with this Annual Report, the “Reports”)
filed in respect of periods included in the year covered by this
Annual
Report, of the Trust;
|
|
2.
|
Based
on my knowledge, the information in the Reports, 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 light of
the
circumstances under which such statements were made, not misleading
as of
the last day of the period covered by this Annual
Report;
|
|
3.
|
Based
on my knowledge, the servicing information required to be provided
to the
Securities Administrator by the Master Servicer under the Pooling
and
Servicing Agreement for inclusion in the Reports is included in the
Reports;
|
|
4.
|
I
am responsible for reviewing the activities performed by
[ ]
under the Pooling and Servicing Agreement and based upon my knowledge
and
the annual compliance review required under the Pooling and Servicing
Agreement, and except as disclosed in the Reports,
[ ] has
fulfilled its obligations under the Pooling and Servicing Agreement;
and
|
|
5.
|
The
Reports disclose all significant deficiencies relating to
[
]’s compliance with the minimum servicing standards based upon the
report
provided by an independent public accountant, after conducting a
review in
compliance with the Uniform Single Attestation Program for Mortgage
Bankers or similar procedure as set forth in the Pooling and Servicing
Agreement, that is included in the
Reports.
|
EXHIBIT
L-1
In
giving
the certifications above, I have reasonably relied on information provided
to me
by the following unaffiliated party:
[ ].
|
[
]
as
Servicer
|
||
| |
|
|
| By: | _________________________________________________ | |
|
Name:
Title:
Date:
|
||
EXHIBIT
L-2
EXHIBIT
M
FORM
OF
SERVICER (OR SERVICING FUNCTION
PARTICIPANT)
BACK-UP CERTIFICATION
[Master
Servicer]
|
Re:
|
Structured
Asset Securities Corporation Trust
[ ]
|
[ ]
as [ ] hereby certifies to the Depositor, the Master Servicer,
the Trustee and the Securities Administrator, and each of their officers,
directors and affiliates that:
(1) I
have
reviewed the servicer compliance statement of the [ ] 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 the 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
[ ] during 20[ ] that were delivered by
[ ] to any of the Depositor, the Master Servicer, the
Securities Administrator, and the 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, the
Master Servicer, the Securities Administrator and the Trustee;
(4) I
am
responsible for reviewing the activities performed by [ ] as
[ ] 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 Servicer has fulfilled its obligations under the
Agreement in all material respects; and
(5) The
Compliance Statement required to be delivered by [ ] pursuant
to this Agreement, and the Servicing Assessment and Attestation Report required
to be provided by [ ] and by any Subservicer or Subcontractor
pursuant to the Agreement, have been provided to the Depositor, the Master
Servicer, the Securities Administrator and the Trustee. Any material instances
of noncompliance described in such reports have been disclosed to the Depositor,
the Master Servicer, the Securities Administrator and the Trustee. Any material
instance of noncompliance with the Servicing Criteria has been disclosed in
such
reports.
EXHIBIT
M-1
Capitalized
terms used but not defined herein have the meanings ascribed to them in the
Pooling Servicing Agreement, dated as of [ ], 20[ ] (the
“Pooling
and Servicing Agreement”),
among
Structured Asset Securities Corporation, as depositor (the “Depositor”),
[ ], as Servicer, [ ], as Mortgage Loan
Seller, [ ], as master servicer (the “Master
Servicer”),
securities administrator (the “Securities
Administrator”)
and
custodian, and [ ], as trustee (the “Trustee”).
|
[
]
as [
]
|
||
|
By:
|
_________________________________________________
|
|
|
Name:
Title:
Date:
|
||
EXHIBIT
M-2
EXHIBIT
N-1
FORM
OF MONTHLY REMITTANCE ADVICE
[TO
BE
PROVIDED AS APPLICABLE]
EXHIBIT
N-1-1
EXHIBIT
N-2
STANDARD
LAYOUT FOR MONTHLY DEFAULTED LOAN REPORT
[TO
BE
PROVIDED AS APPLICABLE]
EXHIBIT
N-2-1
EXHIBIT
N-3
FORM
332 REALIZED LOSS REPORT
[TO
BE
PROVIDED AS APPLICABLE]
EXHIBIT
N-3-1
EXHIBIT
O
FORM
OF SWAP AGREEMENT
[TO
BE
PROVIDED AS APPLICABLE]
EXHIBIT
O-1
EXHIBIT
P
[[RESERVED]]
EXHIBIT
P-1
EXHIBIT
Q
MASTER
MORTGAGE LOAN PURCHASE AND SERVICING AGREEMENT
[TO
BE
PROVIDED AS APPLICABLE]
EXHIBIT
Q-1
EXHIBIT
R
[[RESERVED]]
EXHIBIT
R-1
EXHIBIT
S
FORM
OF
CERTIFICATION REGARDING SERVICING CRITERIA TO BE ADDRESSED
IN
REPORT
ON ASSESSMENT OF COMPLIANCE
To:
[Master
Servicer]
Reference
is made to that certain Pooling Servicing Agreement, dated as of
[ ], 20[ ] (the “Pooling
and Servicing Agreement”),
among
Structured Asset Securities Corporation, as depositor (the “Depositor”),
[ ], as Servicer,
[ ],
as Mortgage Loan Seller, [ ], as master servicer (the
“Master
Servicer”),
securities administrator (the “Securities
Administrator”)
and
custodian, and
[ ],
as trustee (the “Trustee”).
This
certification is delivered pursuant to Section 3.22 of the Agreement.
Capitalized terms used herein but not otherwise defined shall have the meanings
set forth in the Agreement.
[_______],
the undersigned, a duly authorized [_______] of [the Servicer] [Name of
Subservicer/Subcontractor] [the Custodian], does hereby certify that the
assessment of compliance to be delivered by [the Servicer] [Name of
Subservicer/Subcontractor] [the Custodian] shall address, at a minimum, the
criteria identified as below as “Applicable Servicing Criteria”, as identified
by a xxxx in the column titled “Applicable Servicing Criteria”:
|
Servicing
Criteria
|
Applicable
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.
|
|
EXHIBIT
S-1
|
Servicing
Criteria
|
Applicable
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
collection 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 collection 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.
|
|
|
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.
|
|
EXHIBIT
S-2
|
Servicing
Criteria
|
Applicable
Servicing
Criteria
|
|
|
Reference
|
Criteria
|
|
|
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.
|
|
|
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.
|
|
|
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.
|
|
|
|
|
|
EXHIBIT
S-3
|
[NAME OF THE SERVICER]
[NAME OF SUBSERVICER/SUBCONTRACTOR] [NAME OF THE CUSTODIAN] |
||
|
Date:
__________________________________
|
||
|
|
By:
__________________________________
|
|
|
Name:
Title:
|
||
EXHIBIT
S-4
EXHIBIT
T
Trustee:
[ ]
Securities
Administrator:
[ ]
Master
Servicer:
[ ]
Derivative
Counterparty:
[
]
Servicer:
[ ]
Mortgage
Loan Seller:
[
]
Custodian:
[ ]
Sponsor:
[
]
EXHIBIT
T-1
EXHIBIT
U
FORM
OF ANNUAL COMPLIANCE CERTIFICATE
Via
Overnight Delivery
[DATE]
To:
[Master
Servicer]
|
RE:
|
Annual
officer’s certificate delivered pursuant to Section 3.24 of that certain
Pooling Servicing Agreement, dated as of
[ ],
20[ ] (the “Pooling
and Servicing Agreement”),
among Structured Asset Securities Corporation, as depositor (the
“Depositor”),
[ ],
as Servicer,
[ ],
as Mortgage Loan Seller,
[ ],
as master servicer (the “Master
Servicer”),
securities administrator (the “Securities
Administrator”)
and
custodian, and
[ ],
as trustee (the “Trustee”)
|
[_______],
the undersigned, a duly authorized [_______] of [the Servicer][Name of
Subservicer], does hereby certify the following for the [calendar year][identify
other period] ending on [December 31], 20[__]:
|
1.
|
A
review of the activities of the Servicer during the preceding calendar
year (or portion thereof) and of its performance under the Agreement
for
such period has been made under my
supervision.
|
|
2.
|
To
the best of my knowledge, based on such review, the Servicer has
fulfilled
all of its obligations under the Agreement in all material respects
throughout such year (or applicable portion thereof), or, if there
has
been a failure to fulfill any such obligation in any material respect,
I
have specifically identified to the Master Servicer, the Depositor
and the
Trustee each such failure known to me and the nature and status thereof,
including the steps being taken by the Servicer to remedy such
default.
|
Certified
By:
______________________________
Name:
Title:
EXHIBIT
U-1
EXHIBIT
V
ADDITIONAL
FORM 10-D DISCLOSURE
|
Item
on Form 10-D
|
Party
Responsible
|
|
Item
1: Distribution and Pool Performance
Information
Any
information required by 1121 which is
NOT
included on the Monthly Statement
|
Servicer
Securities
Administrator
|
|
Item
2: Legal Proceedings
per
Item 1117 of Reg AB
|
(i)
All parties to the PSA (as to themselves),
(ii)
the Securities Administrator and servicer
as
to the issuing entity, (iii) the Depositor as
to
the sponsor, any 1106(b) originator, any
1100(d)(1)
party
|
|
Item
3: Sale of Securities and Use of
Proceeds
|
Depositor
|
|
Item
4: Defaults Upon Senior Securities
|
Securities
Administrator
|
|
Item
5: Submission of Matters to a Vote of
Security
Holders
|
Securities
Administrator
|
|
Item
6: Significant Obligors of Pool Assets
|
Depositor/Servicer
|
|
Item
7: Significant Enhancement Provider
Information
|
Depositor/Servicer
|
|
Item
8: Other Information
|
Any
party responsible for disclosure items on
Form
8-K
|
|
Item
9: Exhibits
|
Securities
Administrator
|
EXHIBIT
V-1
EXHIBIT
W
ADDITIONAL
FORM 10-K DISCLOSURE
|
Item
on Form 10-K
|
Party
Responsible
|
|
Item
1B: Unresolved Staff Comments
|
Depositor
|
|
Item
9B: Other Information
|
Any
party responsible for disclosure items on
Form
8-K
|
|
Item
15: Exhibits, Financial Statement
Schedules
|
Securities
Administrator
Depositor
|
|
Additional
Item:
Disclosure
per Item 1117 of Reg AB
|
(i)
All parties to the PSA (as to themselves),
(ii)
the Securities Administrator and Master
Servicer
as to the issuing entity, (iii) the
Depositor
as to the sponsor, any 1106(b)
originator,
any 1100(d)(1) party
|
|
Additional
Item:
Disclosure
per Item 1119 of Reg AB
|
(i)
All parties to the Pooling and Servicing
Agreement
as to themselves, (ii) the
Depositor
as to he sponsor, originator,
significant
obligor, enhancement or support
provider
|
|
Additional
Item:
Disclosure
per Item 1112(b) of Reg AB
|
Depositor/
Servicer
|
|
Additional
Item:
Disclosure
per Items 1114(b) and 1115(b) of Reg AB
|
Depositor
|
EXHIBIT
W-1
EXHIBIT X
FORM
8-K DISCLOSURE INFORMATION
|
Item
on Form 8-K
|
Party
Responsible
|
|
Item
1.01- Entry into a Material Definitive
Agreement
|
All
parties
|
|
Item
1.02- Termination of a Material
Definitive
Agreement
|
All
parties
|
|
Item
1.03- Bankruptcy or Receivership
|
Depositor
|
|
Item
2.04- Triggering Events that Accelerate
or
Increase a Direct Financial Obligation or
an
Obligation under an Off-Balance Sheet
Arrangement
|
Depositor
|
|
Item
3.03- Material Modification to Rights of
Security
Holders
|
Securities
Administrator
|
|
Item
5.03- Amendments of Articles of
Incorporation
or Bylaws; Change of Fiscal
Year
|
Depositor
|
|
Item
6.01- ABS Informational and
Computational
Material
|
Depositor
|
|
Item
6.02- Change of Servicer or Securities
Administrator
|
Servicer,
Securities Administrator
|
|
Item
6.03- Change in Credit Enhancement or
External
Support
|
Depositor/Securities
Administrator
|
|
Item
6.04- Failure to Make a Required
Distribution
|
Securities
Administrator
|
|
Item
6.05- Securities Act Updating
Disclosure
|
Depositor
|
|
Item
7.01- Reg FD Disclosure
|
Depositor
|
|
Item
8.01
|
Depositor
|
|
Item
9.01
|
Depositor
|
EXHIBIT
X-1
